Over the past few years, global IT providers have concentrated their outsourcing services more on onshore locations rather than offshore locations. According to the Everest Group, a consultancy and research firm, the surge of onshore outsourcing activity is caused by numerous factors.
Between 2013 and 2014, there was a decline in the onshore locations outsourcing business. The decline was due to the global slowdown. However, from 2015, the percentage of onshore delivery locations had risen in comparison to offshore locations. Among the top 20 providers, the onshore outsourcing services rose from 45% to 52% from 2014 to the beginning of 2016. According to the Everest Group, the onshore working IT services locations have received significant growth in the industry.
In the last one-and-a-half years, many companies set up onshore centres like Farnham IT support. These companies include IBM, Xerox, Accenture, and Dell. Also, Indian-heritage providers including Wipro, HCL, and Infosys are not left behind. Moreover, enterprises such as Siemens, Walmart, Mazda, and Bosch have also set up onshore locations.
The new onshore locations increased from 22 to 52 from 2014 to the first half of 2016. It should be remembered that more than three-quarters of service centres were previously offshore. According to the Everest Group, North America is the most preferred onshore destination for several IT and business processes. The continent of Europe comes second after North America.
What are the factors leading to an increase in onshore delivery? The service providers require a talented workforce to drive their operations. However, the offshore locations lack a large pool of workers with the skills necessary to accomplish complex tasks. The onshore locations have a multi-talented workforce that ensures smooth operations of the service centres.
In conclusion, the number of onshore service centres has increased significantly as compared to offshore locations. North America is the most popular destination for onshore service centres. It is projected that many more companies will set up similar working IT services centres in the future.
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