Authors: Robert McNeill, Bruce Guptill

Homeshoring will complete the decade-long build-out of the Global Delivery Model (GDM). GDM emerged in the late 90s with the rise of India as an offshore destination for projects like Y2K and modernization of legacy applications. Much of the value proposition centered on labor arbitrage, increased offshore labor supply due to lowering of service trade barriers and the global chase for skilled labor in response to a period of high growth, strong OECD currencies and low inflationary markets.

Subsequent evolution focused on development of “hub and spoke” onshore, nearshore and offshore delivery teams that maintain and develop an increasing breadth and depth of services including applications, infrastructure and business processes; and as arbitrage opportunities reduced in a supply market like India, another location was sought to provision supply such as Brazil or the Philippines Much of this success is due to process maturity and modularity (e.g., SEI CMMI and ITIL), sufficient global bandwidth, and clients’ improvement in vendor, project and collaboration management.

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