{"id":4015,"date":"2017-06-22T06:35:00","date_gmt":"2017-06-22T06:35:00","guid":{"rendered":"http:\/\/localhost\/projects\/horsesforsources\/off-shore-based-service-providers-develop-meaningful-presence_062217\/"},"modified":"2017-06-22T06:35:00","modified_gmt":"2017-06-22T06:35:00","slug":"off-shore-based-service-providers-develop-meaningful-presence_062217","status":"publish","type":"post","link":"https:\/\/www.horsesforsources.com\/off-shore-based-service-providers-develop-meaningful-presence_062217\/","title":{"rendered":"Off-Shore-Based Service Providers Look to Develop \u201cMeaningful\u201d Presence in the U.S."},"content":{"rendered":"

The pendulum is swinging back. Over the past year, we\u2019ve seen the increasing focus from India-based service providers to invest in building on-shore presence and capability in the U.S. \u00a0While spurred on by H-1B visa limitations and in-flight policies regarding minimum wage and the politics of \u201cprotectionism,\u201d the long and short of it is that the U.S. citizens should benefit from local investments. U.S. governments and economic development entities are offering incentives for partnering with these service providers as they seek out \u201chubs\u201d central to current and potential clients. Two recent examples are Indianapolis, Indiana with Infosys and Jacksonville, Florida with Genpact, where the cities offer tax incentives and colleges and universities can provide a talent pool.<\/p>\n

It used to be \u201ctoo expensive\u201d for service providers to set up on-shore service delivery centers, but with the increasingly integrated and intelligent use of robotic process automation and cognitive computing and the motivation of politics and protectionism, this argument is fading. What is also relevant is when the partnership changes focus from outsourcing a task or point solution such as \u201ccollections\u201d to business outcomes such as providing a better patient experience and increasing upfront payment (thereby reducing the need for collections), the service provider needs to be more integrated into the end-to-end process and business operation. That means having a local presence and interaction to provide relevance and create meaning and insight. (See \u201cRecasting the patient billing experience<\/a>\u201d as an example).\u00a0<\/p>\n

Our research (see Exhibit) shows the there is a significant drop across the board in the move to \u201coffshore\u201d business and IT work \u2013 finance and accounting and HR, in particular.\u00a0 Case in point, we recently heard from a client about how Sutherland helped set up and recruit into a local service center for F&A services in a matter of a few months for a company that was separating from its parent.<\/p>\n

Exhibit: Changing use of offshoring \u2013 shared services and outsourcing<\/strong><\/p>\n

\u00a0<\/p>\n

Source: HfS Research in Conjunction with KPMG, \u201cState of Operations and Outsourcing 2017\u201d <\/em>\u00a0Sample: n=454 Enterprise Buyers<\/em>\u00a0<\/p>\n

Click to enlarge<\/a><\/p>\n

How service providers are expanding local, U.S.-based presence <\/strong><\/p>\n

Investments by service providers in having short- and long-term U.S-based capability for clients include local service delivery centers and increasing co-location delivery teams as well as work-from-home options; education support through curriculum development in local colleges and universities as well as programs for K-12 to \u201centice\u201d and enable interest in STEM (e.g., code.org and Girls Who Code) to create the workforce of the future; and transitioning workforces from clients to their own organizations.<\/p>\n

Examples include: \u00a0<\/p>\n