Global Locations State of the Market 2025: Balancing Talent, Cost, and AI Disruption | Locations PEAK Matrix® 2025

Offshoring and nearshoring are gaining momentum as organizations seek to manage rising costs, margin pressures, and onshore talent constraints. This trend is expected to continue shaping global delivery strategies in the near future.

Although APAC locations retain their positions as leaders for IT-BP service delivery, they are expected to see moderate growth momentum due to AI-driven efficiencies across functions. In Europe, nearshoring continues to gain momentum due to growing regulatory hurdles and data sovereignty requirements. Organizations are exploring tier-2/3 cities for potential expansions due to increased competition and wage inflation in tier-1 locations. Strong government support, with vast untapped talent, creates significant potential for the MEA region, though its growth outlook is linked to regional geopolitical stability. Locations in LATAM are growing moderately in terms of new capabilities to serve the North American (especially the US) markets.

The Global Locations State of the Market Report 2025 describes the global services locations landscape, highlighting location-related developments and trends in the IT-BP, ER&D, and generative AI landscape to help enterprises design a best-fit location portfolio strategy.