BENGALURU: IT services companies are increasingly adopting
nearshoring
as a strategy to be closer to their clients while finding cost-effective alternatives to onsite locations.
In recent years, these firms have expressed their intention to expand in nearshore locations such as Costa Rica, Morocco, Romania, and the Philippines. Nearshoring allows proximity for easier communication and collaboration due to shared time zones and cultural similarities.
This compatibility can result in improved productivity and quality of work, as teams are better aligned in terms of expectations and communication styles.
According to their annual report,
HCLTech
aims to double its nearshore headcount in the 2025-26 financial year from over 23,000 in the 2023 and 2024 financial years. Infosys, for instance, has also seen its nearshore headcount increase to 64,240 in the 2023-24 financial year from 49,473 in the 2021-2022 financial year.
TCS has recently launched a new delivery centre in Warsaw in Poland, expanding its operations in the country. The company expects to double its workforce to over 1,200 in a year to support its further growth in the region. TCS has also set up a TCS Pace Studio for clients to explore and deploy emerging technologies, collaborating with startups and academia to address real-life business challenges. A similar centre was inaugurated in Stockholm in Aug this year – a strategic location in the Nordics – where TCS has over 20,000 employees across Sweden, Norway, Denmark, and Finland.
Many other
IT firms
continue to add to their nearshore centres, although they have not provided consolidated numbers for these locations. LTIMindtree has witnessed an increase in clients in nearshore locations since the merger and has expanded its presence in Canada, Mexico, and China. The firm has also set up a centre in Riyadh earlier this year, as well as a 500-seater centre in Poland and a 100-seater in Mexico last year to cater to local clients.
