52) Outsourcing Moves to America

India will become just a hub in the wide network which business and technical skills will be delivered by IT organizations. Stiffler says that it is better for most processes to candidate for the remote, nearshore domestic delivery than for 100% onsite or 100% offshore.

Responding to “the fatigue between India and China” described by Stiffler, businesses are trying to relief of the attrition from the staff, and rise salaries which have been the standard in Asia, also they are looking to less expensive areas in the U.S. and Latin America.

As for the strengthening of the rupee and the weakling of dollar, the currencies of Latin American have increased little; this makes the market more attractive. Big service providers which are targeting American market have already changed the expansion to Latin America; the most popular areas are Brazil and Mexico. American and Indian companies also are opening up the new serving centers in the Southern Cone of South America consisting of Chile, Argentina and Uruguay.

With their customers, the service providers are also rediscovering the good and old traditional IT services firms such as Bearing Point, Accenture and CapGemini, they are establishing shop in less expensive and smaller regions like Hattiesburg, Tulsa, Kansas City, Miss and Okla. At the same time, the outsourcers in India are building and purchasing forcefully all over North America.

Stiffler states that delivering IT services and business from the U.S. and Latin America will not replace what is being done now in China or India. It only enlarges the processes and technical potential pool.