Asda, a heavyweight in Britain’s supermarket arena, is diving into outsourcing customer service by proposing to shift 26 social media team roles to overseas locations. Unveiled in early April 2025, this plan is a linchpin in the retailer’s aggressive cost-cutting campaign, designed to shore up its finances and regain ground in a fiercely competitive market. As Asda charts this course, its embrace of outsourcing customer service mirrors a broader retail shift toward efficiency amid unrelenting pressures.
Mounting Pressures Drive Outsourcing Customer Service
Asda’s turn to outsourcing customer service is a response to a cascade of challenges threatening its stability. Since its £6.8 billion acquisition by TDR Capital and the Issa brothers in 2021, the retailer has seen its UK grocery market share slip from 14.4% in 2022 to 12.6% by early 2025, per Kantar data. This erosion stems from fierce competition by discounters like Aldi and Lidl, who’ve capitalized on a consumer shift toward budget-friendly options during a cost-of-living squeeze.
This isn’t Asda’s first outsourcing rodeo. In 2024, it offshored over 100 IT positions to an Indian supplier, trimming costs while igniting debate over UK job losses. Now, the focus is on outsourcing customer service, with 26 social media roles in the crosshairs. These efforts are part of a wider strategy that includes axing staff bonuses in 2024 and slashing prices to lure back customers. For Asda, outsourcing customer service is a critical tool to lighten its financial load while fending off rivals in a brutal price war.
A Turnaround Fueled by Outsourcing Customer Service
At the forefront of Asda’s revival is Chairman Allan Leighton, who returned in November 2024 to resurrect the retailer’s past success. Having led Asda to prominence under Walmart from 1996 to 2000, Leighton is now tasked with restoring the “Asda DNA”—a blend of affordability and reliable service. “We have opened a consultation with a small number of colleagues affected should this proposal go ahead, and our priority is to do all we can to support them during this process,” he stated on April 2, 2025.
Outsourcing customer service is a key plank in this turnaround. Since January 2025, Asda has cut prices on 1,500 products—spanning essentials like milk to household items—while pouring £50 million into store upgrades, from modernized layouts to enhanced fresh food sections. These moves aim to counter discounters, but as Retail Gazette reports, Asda’s climb back to dominance is steep, with outsourcing customer service freeing up resources for these ambitious efforts.
Exploring Outsourcing Customer Service with Kuubiik
When retailers like Asda opt for outsourcing customer service, they often tap into global talent pools to reduce costs while maintaining quality. Platforms like Kuubiik showcase how this works, offering skilled professionals at rates starting at USD $710 per month for full-time staff and $355 for part-time roles. Here’s a look at three roles that could fit into such a strategy:
- Telemarketers (Learn More):
- Function: These workers make outbound calls to promote initiatives like Asda’s price cuts or loyalty programs, engaging customers directly.
- Cost Context: At $710/month full-time or $355/month part-time, this is a steep discount from UK wages, often topping £1,500 monthly.
- Impact: Amplifies outreach efforts, helping retailers like Asda reconnect with shoppers without straining budgets.
- Customer Service Agents (Learn More):
- Function: Agents manage inbound queries—social media complaints, product questions—vital during transitions like Asda’s proposed shift.
- Cost Context: Priced at $710 full-time or $355 part-time, it’s a cost-effective alternative to local hires.
- Impact: Keeps service seamless, ensuring Asda’s reputation holds as it moves 26 roles overseas.
- Customer Success Specialists (Learn More):
- Function: These specialists nurture long-term customer relationships with personalized support, boosting loyalty.
- Cost Context: Available at $710/month full-time or $355/month part-time, they deliver value at a low cost.
- Impact: Strengthens retention, aligning with Asda’s goal to rebuild trust among price-sensitive shoppers.
These roles highlight how outsourcing customer service can maximize efficiency. For Asda, the savings—compared to UK salaries averaging $1,900 USD monthly per Glassdoor—could fund store revamps or deeper price cuts, supporting its broader restructuring.
Retail’s Outsourcing Surge: A Sector-Wide Trend
Asda’s push into outsourcing customer service echoes a growing movement across UK retail. Morrisons, also private equity-owned, recently flagged hundreds of jobs for cuts as it streamlines operations, per Outsource Accelerator. Tesco has similarly offshored back-office tasks to India, trimming costs while preserving frontline roles. These cases reflect a sector under siege—rising inflation, tight margins, and competition from discounters are forcing traditional grocers to rethink their cost structures.
For Asda, outsourcing customer service fits this pattern. Moving social media roles overseas could save millions annually, redirecting funds to competitive pricing or store enhancements. Yet, it’s a delicate dance: offshoring risks alienating UK customers who value local service, a challenge shared by peers navigating the same pressures.
The Road Ahead: Balancing Savings and Service
Asda’s plan to slash 26 jobs through outsourcing customer service is a high-stakes bid to bolster its bottom line, but it’s not without risks. Offshoring could save upwards of £500,000 yearly, based on UK salary averages, fueling Leighton’s vision. Yet, success depends on execution—overseas teams must deliver the responsiveness and cultural nuance UK shoppers demand, or Asda could lose more ground. The consultation, set to conclude by May 2025, will test employee morale and public perception, putting Leighton’s support pledge to the test.
With price cuts in motion and stores getting a facelift, Asda is all-in on its revival. Outsourcing customer service could be the financial shot in the arm it needs, but only if it preserves the quality that once defined the brand. As the retailer stands at this pivotal moment, the industry watches—will Asda’s bold move pay off, or will it stumble in the quest for retail resilience?
