Are IT services deals increasingly moving onshore?

Lee Ayling, who heads up sourcing consultancy Equaterra in the UK, told me recently that he is seeing a trend for big businesses to move services back onshore.

This swing back to onshore services is seeing fewer deals provided from traditional offshore destinations, most notably India. More skills are now being based onshore. This does not mean Indian and other offshore companies aren’t winning business just that more of the skills are onshore.

Ayling said two years ago 90 out of 100 deals might have been supplied from India. But he says at the moment about 30 out of 100 are supplied from India with the other 70 from multiple locations.

He says this is positive for the UK economy.

Will this trend continue or is it just a move by big business to keep the government and public opinion on their sides?

We have seen public opinion in the US turn against the idea of offshore services.

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