Tag: locations

Locations and Talent Strategy – Let’s Talk: Nearshoring to Costa Rica

LINKEDIN LIVE

Locations and Talent Strategy – Let's Talk | Nearshoring to Costa Rica

View the event on LinkedIn, which was delivered live on Wednesday, January 25, 2023.

Over the last decade, IT-BP services delivery from Latin America (LATAM) experienced a major boost as the location became a sought-after nearshore destination for companies in the US and Canada 🌎. While time zones and cultural similarities have played a significant role in the increase, companies have also discovered lower costs, increased government support, and rising English proficiency📊.

📢In this LinkedIn Live recording, we do a deep dive into Costa Rica and explore the opportunities and challenges of services delivery in this market.

The speakers discuss:

✅ What is the value proposition of Costa Rica for global services delivery?
✅ What is the nature of the talent pool, and what skills are available?
✅ How much cost arbitrage does Costa Rica offer?
✅ What is the on-the-ground experience of players operating IT-BPO delivery centers in Costa Rica?

India’s Tier 2 and 3 Cities: The Next Hotbeds for Growth | Blog

While India’s tier 1 cities have dominated global services delivery for more than two decades, the country’s tier 2 and tier 3 cities are gaining traction to become the next hot spots. Read on to learn why these locations are grabbing the attention of investors and enterprises.   

India has operated as the largest behemoth for the global services industry since outsourcing’s start, driven by an almost unparalleled talent-cost advantage and conducive business environment. Tier 1 cities, such as Bangalore, Hyderabad, Delhi-NCR, Mumbai, and recently Pune and Chennai, have seen most of the growth and continue to attract firms seeking complex skillsets.

However, the triple whammy of high turnover, shrinking pipelines, and rising inflation kept the talent market in flux for most of 2021-2022. As these cities near saturation, tier 2 and 3 cities are emerging as the new growth hubs.

A spate of infrastructural developments has put these cities on the global map for attracting investment. Widespread adoption of hybrid working, satellite offices, co-working models, and plug and play workspaces increase the potential for hiring from tier 2 and 3 cities.

Enterprise preferences for diversifying workforces and leveraging gig models, and reverse migration from metropolitan cities to hometowns post-pandemic further fuels the growth of tier 2 and 3 cities.

While tier 1 cities occupy more than four-fifths of the global services industry, the collective market share for tier 2 and 3 cities has notably increased from 11% to 18% from 2019 to 2022, as shown below:

Picture1 2

Let’s explore the race of cities within each tier:

Tier 2 cities

Ahmedabad and Kochi lead the tier 2 city clusters offering a moderately large talent base (79,000-plus graduates) and medium market maturity for most functions. This area has the most established global services delivery ecosystem but the least cost arbitrage among tier 2 cities. GIFT city in Ahmedabad has particularly gained traction due to dedicated government initiatives to attract investment. Jaipur, Indore, Coimbatore, Chandigarh, and Thiruvananthapuram follow next with a healthy mix of IT and business process services (BPS) delivery leaders such as UST and Wipro scaling up to 2,000-plus full-time equivalent (FTE) employees in these locations. After that are Bhopal, Lucknow, Nagpur, and Vishakhapatnam, which are characterized by smaller pools (limiting the availability of mid-to-senior talent and scaled ramp-up) and a larger share of domestic delivery.

Tier 3 cities

Bhubaneshwar and Vadodara lead the tier 3 cities segment offering a moderately-sized talent base (35,000-plus graduates) and low to medium market maturity for IT-BPS functions. The government is investing in IT and digital initiatives in a bid to attract more major companies to Bhubaneshwar, Odisha’s capital city. An IT and IT-enabled Services (ITeS) park is being built in Vadodara through a collaboration between the Gujarat government and Larsen & Toubro (L&T) aimed at creating some 10,000 jobs by 2027. Other tier 3 cities, such as Mysore, Madurai, Mangalore, Nashik, Raipur, Tiruchirappalli, and Vijayawada, offer a smaller talent pool with a lower scalability potential of approximately 250 FTEs.

Overall, we are bullish on the long-term prospects of India retaining its position as the mecca for global services delivery. We expect tier 1 cities to continue to flourish and tier 2 and 3 cities to drive the next growth wave for the global services industry.

To learn more about the relative attractiveness of different cities in India, please read our latest report, India’s Services Delivery Overview – Tier-1 Hubs Continue to Grow, Tier-2/3 Speeding Up.

To discuss the global services industry, please reach out to Parul Jain ([email protected]) and Aarushi Rishi Raj ([email protected]).

To learn about global services delivery in LATAM, watch our LinkedIn Live session, Locations and Talent Strategy – Let’s Talk: Nearshoring to Costa Rica.

Key Issues for 2023: Rise Above Economic Uncertainty and Succeed | Webinar

LIVE WEBINAR

Key Issues for 2023: Rise Above Economic Uncertainty and Succeed

As we look toward 2023, economic uncertainty is prime and center. Rising inflation, interest rate hikes, and GDP contraction – matched with low unemployment rates and high talent demand – have left business leaders unsure of what to expect and how to prepare for 2023.

Join Everest Group’s Key Issues 2023 webinar as our experts provide insights into the outlook of the global IT-BP industry and discuss major concerns, expectations, and key trends expected to amplify in 2023.

All the data is based on input from global leaders across enterprises, Global Business Services (GBS), and service providers.

Our speakers will discuss expectations for 2023, including:

  • The outlook for global services
  • Top business challenges and priorities
  • Changes in sourcing spend and service delivery costs
  • In-demand digital services and next-generation capabilities
  • The evolving strategy for talent, locations, and the workplace

Who should attend?

  • CIOs, CDOs, CTOs, CFOs, CPOs
  • Service providers
  • GBS / Shared services center heads
  • Global services leaders
  • Locations heads

Global Services Market Update: Emerging Location Opportunities to Combat Economic Slowdown | Webinar

ON-DEMAND Webinar

Global Services Market Update: Emerging Location Opportunities to Combat Economic Slowdown

Access the on-demand webinar, which was delivered live on September 8, 2022.

Explore the 2022 global sourcing market, looking at key developments and overall growth trends for the service provider and GBS markets.

Additionally, we will look at the changes in location strategies adopted by service providers globally and the emerging trends in these locations. We will also discuss the impact of the expected economic slowdown on the market’s overall workforce strategy and offer recommendations to service providers, focusing on which trends to monitor, the importance of sustainable workforce strategy, and the relevance of cost in location decision-making.

What questions will the on-demand webinar answer?

  • How has the global service market evolved in 2022, and what are key developments across leading global service providers?
  • How has the location strategy for service providers changed in the past couple of years?
  • How will the expected macroeconomic slowdown impact the war on talent?
  • What are some of the key steps service providers should take as they face the economic slowdown?

Who should attend?

  • Service provider leads
  • Enterprise | SVM
  • Global in-house center (GIC) / Shared services center leaders
  • Tech talent leaders
  • Global services leaders
  • Locations leads

Request a briefing with our experts to discuss the 2022 key issues presented in our 12 days of insights.

Request a briefing with our experts to discuss our 2022 key issues

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