Information technology firms are steadily increasing their volume of delivery centers, as global demand for digital services continues to rise.
According to the latest study from Everest Group, the number of global delivery centers has increased 177% over the past four years.
The share of digital services in outsourcing deals also doubled in the last three years, with cloud, IoT, and big data solutions experiencing higher demand than automation and artificial intelligence services.
Despite the rise, the global services market has not grown much, mainly because the BPO market has dipped, with its share sliding by 4%, from 46% to 42%.
Pointing at Brexit and the protectionist policies of the current US administration, Everest Group says it expects the global services market to continue declining this year as well.
Macroeconomic slowdown, volatility in equity and investment markets, and currency fluctuations will also hamper the growth rate, says Anurag Srivastava, vice president and director of the Global Sourcing practice at Everest Group.