Why IT service providers are investing in North America

IT service providers set up more new IT delivery centers in North America than anywhere else in the world last year, according to new research.North American locations accounted for more the one-third of new delivery sites (29 out of a total of 76) established by service providers in 2016, according to a report from IT and business sourcing consultancy and research firm Everest Group.

The need to be close to U.S. customers coupled with the increased use of automation to control costs is making North America a more attractive option for service delivery, says Everest Group.

[ Related: IT service providers increase investment in onshore locations ] The demand for digital transformation related technologies specifically is driving interest in certain metropolitan areas. The share of digital services being delivered in new service provider set-ups has been steadily increasing from approximately 25 percent in 2012 to 63 percent in 2016. “This percentage is expected to continue to remain high as service providers focus on expanding and broadening their digital capabilities,” says Everest Group Vice President Salil Dani.

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Source: http://www.cio.com

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