Talent and the Digital Services Boom | Market Insights™
Tips for aligning talent to take advantage of the surge of digital services development
Tips for aligning talent to take advantage of the surge of digital services development
While not currently leading, or even major, delivery locations, these cities may be worth consideration for specific services and organizations
Nearshore and onshore locations offer a compelling digital service delivery value proposition
The digital services global sourcing market is dispersed
CIOs need to check for “outsourcing bloat.”
Many companies in mature, offshore, FTE-based outsourcing environments experience substantial bloat. From our knowledge of our clients’ situations and our research for companies seeking objective data to help them determine the return on investment in outsourcing, it’s clear that many companies today are paying too much for the resources. And they’re blissfully unaware of the outsourcing bloat — which means that they are paying for 30 percent or more of FTEs than they need. Moreover, they don’t have visibility into what could be done to rationalize the bloat. This is a significant problem.
The outsourcing bloat grows in two dimensions: (1) paying for too many FTEs and (2) paying too much per FTE. The problem has an even bigger impact when you consider that outsourced FTEs will cheerfully respond to system problems, but not address the underlying issues which cause them. Our observation is companies that have fixed underlying systemic problems are operating with 30 to 40 percent fewer FTEs.
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India GIC IT talent migration patterns
Supply of employable entry-level IT talent likely to exceed demand for IT talent exports, but assessing talent from tier-2/3 locations will be necessary to meet demand
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Contrary to popular belief, computer science engineers constitute less than 30% of total employed pool for IT services
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More than 90% of the IT services talent employed by GICs in Indiais concentrated among few locations
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High retention is based on strong brand positioning, work environment, and compensation policies
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