Small firms look to freelancers

21/February/2012

The UK's small businesses are increasingly employing global freelancers as they bid to keep costs down but continue trading, according to research.

A study by Freelancer.co.uk found companies increased their spending on freelancers by 134 per cent in the year, reports Fresh Business Thinking.

The company said outsourcing was a way for firms to engage cheap but skilled workers.

UK businesses are also thinking global when it comes to hiring, tapping into a network of skilled freelancers from 234 countries.

This makes UK business the second-largest employer of freelancers in the world, Freelancer.co.uk said.

According to Saif Bonar, UK manager at the website: "With a global workforce of more than three million highly skilled but affordable freelancers, it is little wonder that Britain's small businesses have started outsourcing their work to secure and boost the bottom line," it was reported.

Paul Townsend, director, UK corporate services at Jordans Ltd, said it was no surprise that more firms are looking  to freelancers and consultants.

"We're seeing a growing trend for companies to outsource some or all their corporate compliance," he said.

"They can achieve immediate cost savings and the transfer from in-house to outsource solution can take place very quickly."

It comes as banks miss their lending targets as part of the Project Merlin agreement.

Barclays, HSBC, Lloyds Banking Group, RBS and Santander lent £74.9 billion to small firms in 2011, less than the target of £76 billion.