The maturing global sourcing scenario has presented suppliers with a dynamic marketplace based on changing buyers need and demands. These buyer demands lay extreme emphasis on the need for next generation characteristics in global services models, marked by globally diversified delivery footprint, industrialized delivery approach, and a global talent pool for growth, according to Everest, a global consulting and research firm.

As the outsourcing industry evolves into a more sophisticated space, service providers are looking for means of catering to the highly progressed buyer needs, which go beyond labor cost arbitrage. These buyer preferences include an increased geographic and services scope, sophisticated delivery requirements, and a more thoughtful approach towards a global sourcing portfolio centered around value maximization and risk management, according to a new Everest study, Global Sourcing 2.0 — Evolving Global Delivery Imperatives for Outsourcing Service Providers.

Accordingly, service providers are re-evaluating their global delivery model designs to meet next-generation global sourcing challenges and opportunities. Locations portfolio, operating model and talent management emerge as key dimensions on which service providers are redesigning their delivery models. The Everest report analyzes key global delivery trends, next generation imperatives, and discusses their implications for buyers and service providers.

“The evolution of the supplier delivery models is evident; more so with the industry dynamics to remain high on growth requirements, even when faced with an extreme competitive environment. As the buyers’ sourcing strategies and engagements mature, service providers are re-thinking their global delivery models to meet evolving buyer requirements related to location risk diversification, location-agnostic & consistent delivery experience, faster and lower cost transitions and deep domain expertise,” said Amneet Singh, Vice President, Research, Everest Group

“We believe that a diversified and well-balanced location portfolio, industrialization-driven operating model comprising global delivery suites and enabling infrastructure, and a rich and capable worldwide talent pool will be critical for suppliers to compete and be relevant in this next phase of global sourcing evolution,” added, Amneet.

“Understanding these global delivery trends holds importance for service providers and buyers alike”, said Gaurav Gupta, Principal & Country Head, India, Everest Group. “While it is critical for service providers to be aware of these imperatives and prepare to compete with the changing market paradigm, buyers need to incorporate and leverage these next-generation global delivery characteristics in their decision making to drive improved value from their sourcing programs”, added Gaurav.

The Everest Report, Global Sourcing 2.0 – Evolving Global Delivery Imperatives for Outsourcing Service Providers, is based on the analysis of global delivery trends of leading global and Indian service providers, supplemented with discussions with buyers and service providers, and leverages Everest’s extensive experience in serving the global sourcing industry. The report presents the global delivery trends with pertinent examples, data analysis and observations, and draws important implications for service providers as well as buyers.