Top Outsourcing Trends for Q3 2010 - Slide 8

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In contrast to Q3-2009, Q3-2010 saw a higher share of Tier-2 cities as compared to Tier-1 cities. We witnessed existing suppliers looking to expand their existing operations in established locations such as India and the Philippines. In these situations (i.e., captive and new geographies), companies tend to explore alternate delivery locations in Tier-2 cities to leverage lower costs in these locations and minimize concentration risk.

India has long been a dominant outsourcing destination and that hasn’t changed, based on recent research from the Everest Group, which tracks the relative maturity of different global services destinations. Latin America and Africa saw increases in outsourcing activity in 2010’s third quarter, while activity in Eastern Europe slowed.

Click through for further insights based on Everest’s heatmaps, which look at the number of captive delivery centers and third-party delivery centers established across the globe. The heatmaps are published in Everest’s quarterly Market Vista reports, which include additional data about outsourcing activity.

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