Introduction

The maturing global sourcing market presents service providers with evolving buyer needs and preferences including – increased geographic and services scope, sophisticated delivery requirements, and a more thoughtful approach towards a global sourcing portfolio centered around value maximization and risk management. Accordingly, service providers are re-evaluating their global delivery model designs to prepare for meeting the next-generation global sourcing challenges and opportunities.

This Everest report analyzes the global delivery trends and imperatives in outsourcing and discusses their implications for buyers and service providers

Scope

The report, Global Sourcing 2.0 – Evolving Global Delivery Imperatives for Outsourcing Service Providers, analyzes the trends and next generation imperatives for service providers along some of the key components of global delivery – location portfolio, operating model, and talent management. The data, findings and analyses are based on a representative sample of leading global and Indian suppliers providing outsourcing services. The analysis of global delivery trends amongst the leading service providers in the sample set has been supplemented with discussions with buyers and service providers, and leverages Everest’s extensive experience in serving the global sourcing industry. The report presents the global delivery trends with pertinent examples, data analysis and observations, and draws important implications for service providers as well as buyers of outsourcing services.

Contents

A globally diversified delivery footprint, industrialized delivery approach, and a global talent pool are the key next-generation characteristics of global delivery model designs employed by providers of sourcing services. Understanding these global delivery trends holds importance for service providers and buyers alike. While it is critical that service providers be aware of these imperatives and prepare to compete with the changing paradigm, buyers need to incorporate and leverage these next-generation global delivery characteristics in their decision making and drive improved value from their sourcing programs. Some of the other key findings of this report are:

• Offshore leverage continues to dominate the outsourcing economics and is an accepted reality for staying competitive in the global services business
• Service providers view a diversified delivery location portfolio as a strategy to meet evolving buyer requirements and mitigate risks associated with labor markets and currency movement
• There is an increasing trend towards building a globally integrated delivery organization, shaped as matrix structure around industry verticals and service lines
• Industrialization is a prime area of focus for the next-generation operating model
• Service providers are investing in building a strong, high-quality global talent pool and focusing on continuous development of their workforce capabilities