Introduction

As the global economy recovers from the recession of 2009, the global sourcing market is witnessing an increase in activity. Companies are expanding offshore operations through both captive and third-party models. Further, the geographic spread of offshoring is expanding with new locations emerging across Asia, Central America, and Eastern Europe.

To gain further insight into these trends, Everest conducted a market survey during January-February 2010. The survey focused on understanding the current location footprint, expansion plans, and perceptions of risk in offshore locations. In this whitepaper, we present a summary of how buyers are thinking about their expansion plans, specifically with respect to scale and locations. We also explore typical location risk perceptions of buyer organizations.

Key takeaways:

• Most buyers plan to expand offshoring and a significant proportion plan to expand offshoring aggressively. Approximately 75 percent of small and medium adopters and 90 percent of large adopters plan to expand their offshore scale by more than 500 FTEs over the next two years.
• India is the dominant location and more than 75 percent of respondents currently leverage India. As buyers grow offshore scale, they are increasingly building multi-location portfolios.
• India will continue to be an important anchor for global portfolios with more than 70 percent of buyers planning to expand in India. For those who plan to expand in India, Philippines and China are the most prominent locations for expansion. Malaysia, Brazil and Mexico are other locations that buyers plan to grow within their global portfolio.

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