IT Services Delivery from the U.S.: Making Location Decisions as Onshoring Increases

27 Sep 2016
by Prashray Kala, Samyak Mittal

The United States, in last five years, has seen growing interest in onshore delivery of IT services. This is driven by factors such as changing regulations, the need to overcome offshore management issues, and client preferences. Enterprises as well as service providers are increasingly designing service delivery portfolios to enable work in a collaborative manner with onshore business teams. The increasing adoption of digital services, demand for niche skills in cloud, big data and cybersecurity, and enterprise’s focus on becoming agile and innovative are also major drivers of increase in demand for onshore delivery.

This report assesses the key drivers and trends in IT service delivery from the United States. It also aims to assist companies in location selection within U.S. cities by highlighting the key factors to be considered while selecting locations for onshore delivery.

Scope and Methodology

  • IT ADM (Application, development and maintenance) delivery from in-house centers as well as third-party service providers from locations in the United States
  • Key location categories and associated trade-offs
  • Assessment of select cities for delivery center set-up across the following dimensions – operating cost, entry-level talent availability, experienced resources and government incentives

Contents

This report shares Everest Group’s perspective on increasing IT services onshoring in the United States. Key topics covered are:

  • Key factors driving onshoring in the U.S.
  • Trends in IT services delivery, focus on digital services delivery
  • New talent models for entry-level and experienced level hiring and factors impacting it e.g., impact on landed resource model as a result of U.S. work visa fee hike
  • Detailed assessment on location options for onshoring
  • Implications for buyers and providers on location options on the basis of scalability, access to niche talent, and desired cost profile

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