North America Domestic Outsourcing Services: Providers Embrace Onshoring – Is the World Still Flat?

29 May 2015
by Eric Simonson, Hrishi Raj Agarwalla, Sakshi Garg



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.

Number of Delivery Centers

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.

Distribution of Delivery Centers


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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