Nearshoring as a concept has gained traction in recent years. With companies realizing the benefit of cost-effective remote team collaborations, overlapping time zones, cultural alignment, shorter travel time and increased customer responsiveness. Consequently, the outsourced shared services (OSS) market is forecasted to reach US$ 971.2 billion by 2023. This means the OSS industry will exceed US$ 1.0 trillion, within the next two years1. A clear indication that nearshoring of managed operations OSS is the next game changer in software delivery. While companies in the US are still heavily dependent on offshoring to India, they have been nearshoring a lot of their work in recent years to Mexico, many organizations in Europe have also started nearshoring the management of their IT and Shared Services to locations overlapping their time zone. The objective of the article is to evaluate the benefits of nearshoring managed OSS for Europe to Dubai.
The Middle East has been focusing its economic transformation towards non-oil industries such as OSS, ICT, Telecom and knowledge-based industries. Being an established regional and international business hub, the OSS market size in UAE in terms of spend is estimated at over US $ 5.9 billion in 2021 and is forecasted to grow to $ 6.4 billion by 20222. Majority of the UAE OSS market segment is dominated by the Financial Services Industry (FSI) representing 36% of the spend in 2018, closely followed by the public sector and government entities at 16%. By function, UAE OSS spend is concentrated across two key functions, IT (62%) and customer support (21%), this represents 83% of UAE OSS spend. These figures indicate how Xebia Middle East with its access to skilled talent from India and managerial expertise from Europe is better positioned to support organisations located in UK, Scandinavia, Benelux, and Deutsche.
"Digital transformation is not a process but a journey of disruption with a high focus on Innovation." – Shankar Garg, Regional Director, Xebia Middle East.
A successful mix of factors such as – government focused investments, tax free policies, convenient and accessible location, and easy visa processing for skilled workforce has helped position Xebia at Dubai as an ideal nearshoring business destination.
According to the 2021 global shared services and outsourcing survey report, the OSS market size is 837.2 billion in 2021. The primary factors contributing to the growing demand of OSS are the offering of disruptive solutions like cloud computing (CC), robotic process automation (RPA), and artificial intelligence (AI) that have helped drive performance, accelerate time to market, and increase product-service innovation. Irrespective of the scope the main objective of nearshoring is to get industry experts to manage the SSC part of the business to enable the company to focus on its core functions.
Nearshoring of OSS today is about increasing collaboration to integrate services that organisations cannot organically build on their own such as business process automation and digital transformations of SSCs.
At Xebia Middle East we drive value for you by using the latest technology trends to create solutions that address your needs in the field of – digital strategy and transformation, Platform engineering and continuous delivery, big data, AI and Machine Learning, low code software platform delivery, cyber security, product management and quality improvement. Through Business Agility and Design Thinking we improve the alignment between your business and IT to create a responsive and sustainable digital operation. We aim to deliver an AI strategy using Big Data, AI and ML. This establishes a deep connect between your business and data science teams and helps develop production ready AI solutions. We help our customers design and build low code software platforms and applications. Whether it is software development, digital assurance, testing or security, we have all aspects of your software requirements covered. We help implement solution architectures in both Microsoft Solutions and SAP Implementation depending on your business needs as we have certified professionals for Microsoft solutions and SAP. From strategy to technology implementation, Xebia Middle East is a one-stop shop for full stack digital transformation. We provide innovative solutions and services to help your organization become a digital winner.
Managed Shared Services if adopted right will help reduce cost, increase efficiency, and drive business value. The first step however is to identify processes, workforce, and business goals that can be nearshored to SSCs. It is crucial for organizations to select the right governance model– hybrid governance model, multi-functional leader model, build operate and transfer (BOT) model, or global shared service center model. A sure-fire way to succeed in selecting a capability and governance mix that works best for you is to partner with industry IT experts. Get in touch with Xebia Middle east for an in-depth evaluation and information on the flexible governance models that we offer.
1 Deloitte, 2021. “2021 Global Shared Services and Outsourcing Survey Report”. https://www2.deloitte.com/global/en/pages/operations/articles/gx-shared-services-survey.html
2 Monitor Deloitte, 2019. “Outsourcing and Shared Services 2019-2023, Global, Middle East and UAE industry outlook” http://outsourcing-outlook.com/assets/pdf/Deloitte-DOC-Whitepaper_outsourcing-and-shared-services2019-2023.pdf