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New Onshore IT Outsourcing Centers Outnumber New Offshore Locations

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New Onshore IT Outsourcing Centers Outnumber New Offshore Locations

IT outsourcing providers that set up new delivery centers in the first quarter of this year were more likely to do so at an onshore location than in offshore ones, according to a recent report. However, both location options continue to grow in terms of headcount and scope of processes.

New IT outsourcing center activity was down overall for the first quarter, according to outsourcing consultancy Everest's Group quarterly market report, with service providers announcing just seven new centers globally versus 19 in the previous quarter. But of those, five were based in the U.S. (compared to just one in the fourth quarter of 2012) and just two were located offshore (compared to 18 in the previous quarter), according to the report.

That's a big shift from previous quarters, says H. Karthik, vice president of Everest Group's global sourcing research practice, and is attributable to lower demand for global services. The trend was consistent across both traditional U.S. outsourcers and offshore-centric service providers, says Salil Dani, practice director of Everest Group's global sourcing team.

Accenture Leads the Onshoring Pack

Accenture made the most onshore announcements, beginning with plans to hire 300 employees at its new Austin, Texas-based delivery center focused on software products for state health and human service agencies across the country. That will bring Accenture's Texas-based workforce to around 5,000 employees.

Accenture is also investing in an SAP-focused innovation center in Toronto to serve industries including mining, banking, consumer goods, retail and the public sector as well as a Calgary-based office to help employees collaborate locally and around the world.

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