Sometimes the grass is greener…in your own backyard.
That’s the message delivered in the report “Time
Zones Do Matter: Rediscovering the Americas and Nearshore
Delivery” by Dana Stiffler, research director for AMR
Read the Report
For more on what this means for U.S.-based IT
organizations, see a PDF version of the AMR Research
By 2015, India will be just one hub in a vast network from
which IT organizations will deliver technology and business
skills, according to the report. “Most processes are
better candidates for nearshore and remote domestic delivery
than they are for 100 percent onsite or 100 percent
offshore,” says Stiffler.
In response to what Stiffler describes as “India and
China fatigue,” businesses are seeking relief from the
staff attrition and rising salaries that have become the norm
in Asia and looking to Latin America and less expensive regions
of the U.S. as an increasingly attractive option for IT
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As the rupee has strengthened against an already weak
dollar, Latin American currencies have gained little
vis-à-vis the greenback, making that market even more
attractive. Large service providers targeting the U.S. market
have already expanded into Latin America, with the most popular
destinations being Brazil, and more recently, Mexico. U.S. and
Indian firms are also opening up new service centers in the
Cono Sur countries (the Southern Cone of South America, which
consists of Argentina, Chile and Uruguay).
Service providers—and their customers—are also
“rediscovering” the good old U.S. of A. Traditional
IT services companies like Accenture, BearingPoint and
CapGemini are setting up shop in smaller, less expensive areas
like Kansas City; Hattiesburg, Miss.; and Tulsa, Okla.
Meanwhile, Indian outsourcers are aggressively building and
buying throughout North America.
“Delivery of business and IT services from Latin
America and the United States will not supplant what’s
now being done in India or China,” Stiffler says.
“It simply enlarges the potential pool of processes and
technologies that can be addressed.”