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Nearshore’s 2012 Outlook: Time for Industry to ‘Stand on Its Own’

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Avasant Partner, Anupam Govil outlines the Global Trends in Outsourcing for Nearshore locations in 2012. Globally, 2012 will be an interesting year for outsourcing as technological (cloud) and economic disruptions will shape the future of the industry. Gauging by recession-affected market sentiments, most companies are unlikely to tinker with their current outsourcing strategy (new contracts, change service locations, etc). This would in turn limit new expansion opportunities at a global level. From a Nearshore point of view it will be a crucial year. While many providers have established significant presence in Latin America, the second stage of scaling-up looks challenging. The key reason for this is the lack of depth in service delivery maturity. Many companies in the region are finding it challenging to replicate quality, and lack maturity models as well as training programs that have been one of the successes in other offshore destinations. It is imperative for the region to develop a strong mechanism to ensure constant flow of trained professionals and educate middle management on business aspects of remote service delivery (IT management, maturity models, IT security, client relationships, etc.). Some of the smarter providers have achieved this by cross-pollinating resources between their Nearshore and offshore locations. This […]

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