Author: Sakshi G

Global Locations State of the Market 2023: Changing Locations Landscape in the Face of Economic Uncertainty | Locations PEAK Matrix®

Global Locations State of the Market 2023: Changing Locations Landscape in the Face of Economic Uncertainty

Offshoring/nearshoring has seen an uptick across functions as enterprises have embarked on a road to recovery post the pandemic. In 2023 as well, rising cost pressures and talent-related challenges in onshore geography will continue to move the pendulum in favor of offshore/nearshore geographies.

Asia Pacific continues to dominate the global services landscape as major tier-1 Indian cities maintain their Leader positions across functions. The Philippines continues to remain a Leader for contact center and transactional business process services work. In EMEA, Poland and Ireland continue to be the locations of choice for IT-BP delivery. Locations in LATAM continue to witness growth in terms of new capabilities to serve the North American (especially the US) market. Mexico, Argentina, and Colombia continue to maintain their position as Major Contenders (in the global landscape) for most functions.

High Res PEAK 2023 Locations PEAK Matrix APAC IT ADM 1 1 High Res PEAK 2023 Locations PEAK Matrix Global Locations – ERD

What is in this PEAK Matrix® Report

The Global Locations State of the Market Report 2023 describes the global services locations landscape and examines the location-related developments and trends to design a best-fit locations portfolio strategy.
 
The report includes the following topics:
 
  • The key trends shaping the global services landscape
  • Risk watch
  • The Locations PEAK Matrix®: it features an objective, data-driven, and comparative assessment of locations specific to a market segment (function and process); the key market segments and locations in scope include:
    • Information Technology – Application Development and Maintenance (IT-ADM) – Global (excluding North America)
      • Information Technology – Application Development and Maintenance (IT-ADM) – Asia Pacific (APAC)
      • Information Technology – Application Development and Maintenance (IT-ADM) – Latin America (LATAM)
      • Information Technology – Application Development and Maintenance (IT-ADM) – Nearshore Europe
      • Information Technology – Application Development and Maintenance (IT-ADM) – North America
    • Contact Center (CC) – Global (excluding North America)
      • Contact Center (CC) – APAC
      • Contact Center (CC) – LATAM
      • Contact Center (CC) – Nearshore Europe
      • Contact Center (CC) – North America
  • Business Process Services (BPS) – Global (excluding North America)
  • Engineering / Research and Development (ER&D) – Global (excluding North America)
  • This report presents insights into market size and growth, global services exports by region and country, locations activity by region and country, and trends affecting global locations (changes in the investment environment, key developments globally, and changes in the exposure to various risks)

Scope:

  • Industry: global services
  • Geography: global

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What is the PEAK Matrix®?

The PEAK Matrix® provides an objective, data-driven assessment of service and technology providers based on their overall capability and market impact across different global services markets, classifying them into three categories: Leaders, Major Contenders, and Aspirants.

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The Shifting Landscape of Tech Talent: Challenges and Prospects in Ireland | Blog

Ireland’s allure as a top destination for tech talent is fading. This mature delivery hub for nearshore IT services still has much to offer but will have to overcome key obstacles to regain its appeal among international technology professionals. Gain market insights and forecasts for Ireland’s tech talent in this blog. To discuss this topic further, contact us.

In recent years, Ireland has been a magnet for job seekers worldwide, luring talent from diverse nations such as England, India, Brazil, the United Arab Emirates, Turkey, Sri Lanka, and Bangladesh. The country’s appeal as a destination has been fueled by abundant job opportunities, excellent quality of life, simplified work permit processes, and enticing government initiatives such as the Critical Skills Employment Permit and the Start-up Entrepreneur Programme (STEP). However, against the backdrop of a tech sector slump and a demand-supply disparity, Ireland is gradually losing its allure for foreign technology professionals.

Ireland has been a popular location for global companies looking to offer IT service delivery to nearshore Europe. Ireland’s diverse offerings encompass application development, infrastructure management, and other digital services. The nation’s strong talent proposition is underscored by 52,000 tertiary graduates and a thriving information technology and business processes (IT-BP) workforce, totaling 157,000 employees. The cities of Dublin, Cork, and Galway serve as prominent IT-BP hubs, contributing about 80% of the nation’s center setups, with global business services (GBS) making up the majority share at 75% of the total center setups.

While Ireland has been a preferred choice for job seekers, its appeal is waning among overseas technology talent due to various reasons. A surge in remote work options, prompted by the post-COVID era, has opened up alternate global work setups. Concurrently, factors like high living costs, housing constraints, a technology workforce demand-supply gap, and muted global tech sector growth contribute to this trend’s acceleration. Additionally, metro areas like Dublin confront issues with a dearth of international schools and high-income tax rates. Government efforts to alleviate these concerns are geared towards improving living standards through sustainable pay increases.

While programs such as Ireland’s Critical Skills Employment Permit and STEP are designed to attract and retain foreign talent. However, the acceptance and success of remote work have reshaped the scenario, making local talent shortages a thing of the past. Technology companies are tapping into the global talent pool through remote hiring, sidestepping relocation challenges.

These growth-related challenges are reflected in our ongoing tracking of IT job demand in Ireland through Talent Genius™, an interactive platform for insights into IT and business process services decisions. The talent demand for IT services has seen a relative reduction since January 2022, as illustrated below. This decline was most pronounced in the last quarter of 2022, driven by tech sector contraction, economic uncertainty, and job cuts. Although some signs of recovery appeared mid-year, the market dynamics have shifted from employee-led to employer-driven, reflecting cautious hiring practices.

Monthly tech talent demand (job postings) for IT services (indexed to January 2022)

January 2022 = 100

Picture1 4

Ireland boasts an operating cost advantage of 20-25% over London for IT application development and maintenance (IT-ADM) services. Nonetheless, tech salaries have remained steady in the first quarter of 2023 compared to the fourth quarter of 2022, reflecting a competitive yet inflexible market due to talent oversupply. Layoffs and conservative hiring practices have suppressed salary competitiveness. But as the market stabilizes, salary stickiness is expected to improve.

As global dynamics shift, Ireland’s position as a tech talent magnet has encountered new hurdles, and the inflow of international tech talent to Ireland is likely to decline in the short term. Nevertheless, with an upward trend in job numbers and signs of a tech sector revival, the second half of 2023 will hold pivotal insights into the future of Ireland’s technology workforce. Addressing challenges related to remote work, housing, taxation, and competitiveness is crucial to regain its appeal as a tech employment destination.

Be on the lookout for more talent information on other nations by clicking on our interactive platform, Talent Genius. Connect with Sakshi Garg or Aarushi Raj to discuss the latest trends in tech talent.

Masterclass in Managing Your Locations Portfolio and Workforce Strategies | Webinar

ON-DEMAND WEBINAR

Masterclass in Managing Your Locations Portfolio and Workforce Strategies

Access the on-demand webinar, delivered live on August 17, 2023.

Is your location portfolio and workforce strategy primed to manage black swan events, persisting economic uncertainties, cost and price pressures, and the geopolitical changes of today’s business landscape?

Watch this webinar as Everest Group experts deliver approaches to secure maximum value from delivery location portfolios and offer exclusive insights into the best practices for managing location portfolios and workforce strategies.

Whether you hold the reins as a sourcing leader, a delivery head, or a workforce strategy executive, this engaging webinar will provide you with valuable insights and actionable advice to optimize your locations portfolio and maximize returns.

What questions will the on-demand webinar answer for the participants?

  • What are the hottest global sourcing locations trends of early 2023?
  • What are the different models for managing your locations portfolio?
  • What are the key challenges and best practices for optimizing locations portfolio and workforce strategy?
  • Which crucial aspects are often overlooked when managing locations and workforce strategy?
  • What is the ultimate checklist when evaluating a new location?
  • How can you proactively and programmatically gauge the health of your locations portfolio?

Who should attend?

  • Workforce strategy heads
  • Workforce planning heads
  • Location strategy heads
  • GBS strategy heads
  • Delivery heads
  • CHROs
  • HR heads
  • Sourcing and vendor management teams
  • Global sourcing heads
Garg Sakshi
Vice President
Jain Parul
Vice President
Kumar Sumit
Practice Director
Gunjan Mundra
Senior Analyst

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