Indian IT Services companies are choosing a multi-shore delivery model, a combination of onshore, nearshore, and offshore, to meet clients’ needs in a digital era.
TCS, Infosys, Wipro, and Tech Mahindra have ramped up their nearshore presence in Canada, Brazil, and Mexico in the past few years. However, these geographies do not always meet the requirements of US clients seeking to leverage the service provider’s local resources.
While onshoring relates to outsourcing to service providers in the same country, offshoring refers to outsourcing to far-away lands.
Nearshoring is a tactic that enables companies to move their operations to the nearby country with qualified employees and a reduced cost of living without the time change.
A multi-shore delivery model has many benefits like access to a diverse talent pool, faster time-to-market, and decreased risk of operational disruption, especially with the pandemic, when countries may abruptly impose lockdown.
Hiring at the local level helps the companies include a diverse talent pool and minimize risk in their operations from regulatory changes related to immigration.
IT companies’ multi-shore delivery model
Infosys has been stepping up its local hiring in the US to boost its onshore presence. In September 2020, Infosys committed to hiring 12000 American employees, bringing its total hiring in the US to 25000 by 2022. Additionally, it opened six delivery centers in the country in the past few years.
Moreover, as part of expanding its nearshore capabilities, Infosys recently opened two development centers in Canada, Mississauga, and Calgary. It also committed to double its Canadian workforce to 4000 employees by 2023.
The digital development centers will help build digital capabilities and train the next generation of IT talent to support Canadian business, said Infosys.
Wipro has its delivery centers in nearshore locations such as Romania, Australia, and Brazil that helps in serving the fast-changing needs of the clients.
TCS also acquired select assets of Pramerica Systems Ireland Ltd from insurance giant Prudential Financial Inc (PFI), which saw more than 1,500 employees of Pramerica move to TCS’s new global delivery center in Ireland.
Tech Mahindra has built delivery centers in the Philippines and development centers in the US, Canada, Europe, and Latin America. The company aims to boost hiring in tier-II cities and nearshore locations across Europe and Latin America.