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Introduction
The rise of offshored services during the 2000s attracted significant attention and criticism for its impact on organizations and people in the United States and Canada. As the offshoring industry has matured, the need for onshore delivery has become clearer due to the unique role this model plays in fulfilling certain objectives. Thus, buyers of outsourcing services demand greater use of domestic onshore delivery. This has been guided by change in regulations, customer demands, as well as market dynamics. Service providers have responded to the demand for domestic outsourcing services by increasing their onshore presence and setting up new delivery centers.
In this report, we analyze the key trends in domestic outsourcing market in the U.S. and Canada, looking at variations by location type across different functions, type of service provider, and other factors. The analysis includes over 670 delivery centers representing more than 50 leading service providers across IT, business process, and contact center, in approximately 300 cities.
Scope and methodology
The scope of this report includes outsourced IT services, business process services, and voice business process services being delivered by service providers from United States or Canada. The analysis excludes services being delivered by internal models (e.g., central IT, shared services, and business units) and excludes work being delivered by providers in an onsite model.
The reports draws insights from detailed RFIs and one-on-one executive-level interviews with service providers and has been augmented by Everest Group’s proprietary service provider database.
Contents
The report covers trends in domestic outsourced service delivery across locations, types of work being delivered, and the service provider landscape. It is structured along the following sections:
Summary and implications for buyers, service providers and economic development agencies
Relevance of domestic outsourcing
Domestic outsourcing delivery landscape
Talent model
Role played by domestic delivery in provider portfolios
Future outlook for domestic outsourcing
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Introduction
Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on Lodz offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
Parul Jain
Vice President
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Introduction
Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on Puerto Rico offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
Parul Jain
Vice President
-
Introduction
Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on El Salvador offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
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Introduction
Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on Turkey offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
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Executive Summary
The global services market continues to evolve with increasing complexity in the nature of its work and service delivery. While aggressive adopters leverage multiple offshore, nearshore, and onshore locations for service delivery, nascent and second-generation adopters are increasing the scale and complexity of their global services delivery. With usually more than just a few locations to manage, companies look towards organizing their delivery geographies as a tightly integrated network, which they manage and optimize for service delivery.
While companies acknowledge that such an arrangement provides multiple benefits, there are certain myths associated with the structure of GDNM and its implementation. Our experience of supporting global organizations indicates that market realities are often markedly different from most of the prevalent myths. Decision makers need to be aware of these realities so that they can make an objective and fact-based decisions, in context of their company’s location portfolio.
This viewpoint describes the concept of GDNM along with the various stages of its evolution. The document also provides a glimpse of the common myths associated with the network model and the associated realities. The viewpoint concludes with a suggested plan for implementation of GDNM in their organizations.
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Introduction
Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on Mauritius offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
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Introduction
Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on Bogota (Colombia) offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
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Everest Group’s Next Wave Location Profiles provide crisp, yet insightful assessment of emerging / “next-wave” countries or cities for services delivery. These reports help global sourcing practitioners or location strategy professionals stay ahead of competition in understanding global sourcing opportunities in “next-wave” locations.
This report on Iasi (Romania) offers perspectives on:
Global sourcing profile (e.g., functions supported, market activity)
Opportunities for enterprises and service providers
Key drivers and challenges for global sourcing industry
Overview of talent availability and operating costs (including wage inflation and attrition)
Key environment risks (e.g., geopolitical, macroeconomic, safety)
Next Wave Location Profiles, along with other reports in Everest Group’s Locations Insider™ Membership, make up the industry’s most comprehensive resource on location trends and perspectives. Membership to the Locations Insider™ provides up-to-date and actionable insights to inform companies’ location decisions and strategy.
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Latin America has emerged as a leading location for global Information Technology (IT) services delivery. Geographic proximity to the Unites States, time zone similarities, close cultural ties, availability of highly-qualified computer literate talent, and favorable business environment are some of the key factors driving the growth of IT outsourcing industry in this geography. Leading global enterprises and service providers have set up their delivery centers at multiple locations in the region and are leveraging them to deliver complex IT services.
In this report, we analyze Latin America as a destination for delivery of nearshore/offshore IT services. This report provides in-depth assessment of the ten key cities in the region, focusing on labor pool, operating cost, market activity, and risk analysis. The report will assist buyers and service providers understand the opportunity and challenges offered by Latin America for delivery of IT services.
Scope and methodology
The focus of this report is nearshore/offshore IT services delivery from Latin American locations across in-house centers and third-party service providers
The report includes analysis of ten key cities in Latin America: Santiago, San Jose, Monterrey, Guadalajara, Montevideo, Bogota, Buenos Aires, Sao Paulo, Belo Horizonte, and Curitiba
Key dimensions of analysis include – talent pool, operating cost, market activity, and risk analysis
The report leverages multiple sources of information – Everest Group’s proprietary databases (global in-house centers, service providers, market activity, cost, and labor pool), extensive advisory experience in supporting clients with location optimization decisions, and inputs from global services stakeholders and industry experts
Contents
The report provides detailed data and analysis of the global IT services delivery landscape in Latin America and is structured along the following sections:
Summary and implications for buyers and service providers
Market overview of the offshore IT service delivery industry
Assessment of key cities on parameters such as talent pool, market activity, operating cost, and risk
Relative attractiveness of locations and associated trade-offs