After nearly a three-year decline, the IT and BPO outsourcing industries were expected to rebound in 2025. However, macroeconomic headwinds – including shifts in cross-border cost structures – continue to create challenges, while the rapid adoption of AI is fundamentally transforming deal structures and economics. In this webinar, our experts explored the key trends shaping the economics of outsourcing deals in the first half of 2025. We also examined the evolving pricing dynamics of software and cloud platforms – and discussed what these shifts mean for both buyers and providers.

Over the past several years, South Africa has emerged as a key hub for global service delivery, attracting organizations in search of competitive and future-ready locations. The country offers a large pool of fluent, neutral-accent English speakers who are widely recognized for their soft skills and ability to deliver exceptional customer experiences. Strong government support, a mature and stable outsourcing ecosystem, and a favorable business environment support this talent advantage. Additionally, South Africa’s time-zone alignment with Europe and deep cultural affinity with the US and UK markets enhance collaboration and drive higher customer satisfaction. Developed by Everest Group in collaboration with BPESA, this refreshed analysis goes beyond high-level positioning to unpack the unique attributes and structural strengths that make South Africa an attractive option for global service delivery. In this report, we highlight the key pillars of South Africa’s value proposition: infrastructure and enabling environment, mature industry, people advantage, assured service excellence, cost arbitrage, and tactical advantage. Scope Geography: South Africa Services: IT and BP Contents In this report, we examine South Africa’s: Global services value proposition/li> Infrastructure and enabling environment Mature industry and value-driven growth People advantage Assured service excellence Cost savings potential and business advantage Tactical advantage Locations Insider™ Sourcing and Vendor Management

Everest Group’s Location Spotlight reports provide a crisp, insightful assessment of established and emerging/next-wave global services delivery locations by country and city. The reports help global sourcing practitioners or location strategy professionals stay ahead of the competition in understanding key market dynamics and the related opportunities each location presents. Our report on Cape Town, South Africa, offers data-backed research to understand the market’s attractiveness in terms of: Key drivers, challenges, and untapped opportunities for the global sourcing industry Talent and skills availability (at both entry and experienced levels) Depth and maturity across functions Financial attractiveness (including wage inflation and attrition) Delivery presence of enterprises and service providers Key languages supported Key environment risks (such as macroeconomic, geopolitical, infrastructure, safety and security, and legal and regulatory) Location Spotlight, combined with other reports in Everest Group’s Locations Insider™ subscription, makes for the industry’s most comprehensive resource on location trends and perspectives. The Locations Insider™ subscription provides up-to-date and actionable insights on which enterprises can base their location decisions and strategies.

Japan’s technology and Engineering and Research and Development (ER&D) services market has witnessed steady growth, driven by robust global and domestic demand alongside strong government support, especially in the IT sector. The country’s stable, innovation-friendly business environment and advanced infrastructure make it a key location for global firms looking to establish or expand service delivery operations. Tier-1 cities such as Tokyo, Osaka, and Yokohama remain central hubs, delivering a diverse set of services including analytics, AI, cloud computing, and ER&D. However, rising operational costs and intense competition in these metros are pushing companies to consider emerging tier-2 locations such as Fukuoka, Kyoto, and Sapporo. These alternative cities offer a compelling value proposition in terms of talent availability, cost advantages, and evolving service delivery maturity. Simultaneously, companies are increasingly offshoring transactional and non-voice functions to nearby cost-effective destinations such as Vietnam, the Philippines, and India, capitalizing on talent scalability and operational savings. This report comprehensively overviews Japan’s technology and ER&D services market. It analyzes key tier-1 and tier-2 delivery locations and offers insights into Japan’s service delivery landscape and offshore linkages across Asia. Scope Geography: Japan Service: technology and ER&D services Contents In this report, we assess: Japan’s IT and ER&D services delivery landscape Recent market activity and key offshore geographies supporting Japan Tier-1 and tier-2 delivery locations across talent availability, operating costs, and decision-making drivers Market risks, trends, and key participants shaping the sector The role of government initiatives in addressing talent shortages and attracting investment

Location selection has long been a vital business decision, but changing global forces are reshaping its strategic importance. Rising uncertainty, geopolitical shifts, and evolving workforce dynamics demand a more structured, forward-looking approach. Enterprises and service providers are migrating from a traditional, demand-driven location selection model to a proactive, programmatic model that ensures resilience and long-term operational continuity. While cost, talent, and government incentives remain key considerations, their relative influence is changing in defining the location strategy. Decision-makers must reassess priorities, integrate emerging trends, and adapt to regional developments to future-proof their location portfolios. A holistic, forward-looking approach is key to maximizing each location’s value within a broader portfolio. Digital infrastructure, ease of doing business, sustainability regulations, and the evolving role of AI and automation in service delivery are becoming increasingly relevant. Rapid changes in geopolitics, technology, regulations, and workforce dynamics demand decision-makers to think beyond traditional metrics. They must proactively adapt their location strategies to stay ahead. This Viewpoint examines how new operating models, technology, and evolving business priorities are redefining location strategy, helping organizations stay agile and competitive in an uncertain world. Scope All industries and geographies Contents In this report, we examine: Traditional location selection levers and their shortcomings Key themes shaping the location strategy’s future

Everest Group’s Location Spotlight reports provide a crisp, insightful assessment of established and emerging/next-wave global services delivery locations by country and city. The reports help global sourcing practitioners or location strategy professionals stay ahead of the competition in understanding key market dynamics and the related opportunities each location presents. Our report on Guatemala offers data-backed research to understand the market’s attractiveness in terms of: Key drivers, challenges, and untapped opportunities for the global sourcing industry Talent and skills availability (at both entry and experienced levels) Depth and maturity across functions Financial attractiveness (including wage inflation and attrition) Delivery presence of enterprises and providers Key languages supported Key environment risks (such as macroeconomic, geopolitical, infrastructure, safety and security, and legal and regulatory) Location Spotlight, combined with other reports in Everest Group’s Locations Insider™ subscription, makes for the industry’s most comprehensive resource on location trends and perspectives. The Locations Insider™ subscription provides up-to-date and actionable insights on which enterprises can base their location decisions and strategies. Membership(s) Locations Insider™ Sourcing and Vendor Management

Driven by multiple disruptions over the last five years, including the COVID-19 pandemic, talent shortages, economic pressures, supply chain disruptions, and geopolitical tensions, enterprises are rethinking their sourcing strategies. This has introduced a new layer of dynamism to the fast-evolving global sourcing industry. Watch Everest Group experts Vipin Alexander, Udit Anand, Ravneet Kaur, and Akshay Mathur for an insightful session exploring key developments in the global sourcing industry during the first half of 2024. The webinar covered updates on the global sourcing industry, the increased traction in the Global In-house Centers (GICs) leverage, and the role providers can play to make GICs a success. With the resurgence of provider-assisted GIC setups, this session further explored different models through which providers support GIC setups, such as Build-Operate-Transfer (BOT), Assisted, and Joint Ventures (JV) models, with relevant case studies. Additionally, attendees learned how providers stand to benefit from supporting GIC setup pursuits, and the capabilities they should develop to approach this opportunity pragmatically. What questions did the webinar answer? How did the global sourcing market evolve in 2023 and H1 2024? In what ways are providers facilitating the success of enterprises in their GIC journey, particularly in setting up GICs? What capabilities / best practices should providers establish to pragmatically support GICs?

As Global In-house Centers (GICs) gain prominence worldwide, enterprises are increasingly leveraging providers to optimize their in-house delivery capabilities. This focus has become even more critical in today’s challenging economic environment, where enterprises face significant pressures related to talent and cost management. Enterprises are engaging with providers in three key areas across GIC life cycle: setting up GICs, through assisted, joint venture, and build-operate-transfer models; carving out existing GICs; and transforming GICs to meet new demands. Notably, the setup space has evolved significantly in recent years, particularly in India, where provider-assisted setups now account for ~50% of all new GIC setups. As enterprises navigate the market to identify the ideal partner for their GIC setup needs, they encounter options ranging from major global providers to specialized local firms. This plethora of choices can be overwhelming, making the decision a crucial and strategic one. To aid enterprises in making informed decisions, this report utilizes Everest Group’s proprietary PEAK Matrix® framework to evaluate 24 providers’ capabilities in the GIC space. Our analysis covers two critical dimensions: market impact and vision and capability. This research will not only help enterprises find the right provider for their GIC setup needs but also enable providers to benchmark their offerings against the competition, ensuring they meet market expectations and client needs effectively. Scope GIC setups in India, across all service lines and verticals Contents In this report, we: Categorize 24 providers as Leaders, Major Contenders, and Aspirants Study providers’ key strengths and limitations Memberships Catalyst™

Everest Group’s Location Spotlight reports provide a crisp, insightful assessment of established and emerging/next-wave global services delivery locations by country and city. The reports help global sourcing practitioners or location strategy professionals stay ahead of the competition in understanding key market dynamics and the related opportunities presented by each location. Our report on Indonesia offers data-backed research to understand the market’s attractiveness in terms of: Key drivers, challenges, and untapped opportunities for the global sourcing industry Talent and skills availability (at both entry and experienced levels) Depth and maturity across functions Financial attractiveness (including wage inflation and attrition) Delivery presence of enterprises and service providers Key environment risks (such as macroeconomic, geopolitical, infrastructure, safety and security, and legal and regulatory) Location Spotlight, combined with other reports in Everest Group’s Locations Insider™ subscription, makes for the industry’s most comprehensive resource on location trends and perspectives. The Locations Insider™ subscription provides up-to-date and actionable insights on which enterprises can base their location decisions and strategies. Membership(s) Locations Insider™ Sourcing and Vendor Management