How more local IT services can be a strategic tool in DX programs

IT services are evolving. They are adding more specialized benefits closer to key markets, driven by a changing world.

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Bringing business processes or services to nearby countries, rather than offshoring to more distant locations, can offer several strategic advantages in companies’ DX programs.

Local solutions can reduce impact on our planet and raise sustainability and other benefits include cultural and linguistic proximity, plus shorter, more reliable logistics and travel times. There’s no single factor driving the shift towards nearshoring. Multiple forces, such as the Covid pandemic, supply chain bottlenecks and conflict in Ukraine are encouraging organizations to look for additional support, closer to their core operations.

The trend is probably most visible in manufacturing, although it goes much wider than that, of course. Data from Flexport shows the average container journey from Asia to Europe is now taking twice as long as pre-pandemic, while research from Buck Consultants International indicates that more than 60% of US and European companies are planning to bring some production closer to their own region.[1]

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Rebalancing geographical locations

Let’s put some perspective on this. Classic outsourcing remains a behemoth and continues to grow: the global IT outsourcing market alone is expected to reach $587 billion by the end of 2027. But companies are increasingly seeking to rebalance where they need that support. They are demanding rapid access to highly skilled consultants with a more specialized touch and strong regional cultural understanding.

Responding to these changes, Fujitsu has brought online the first of two new Near Response Centers (NRCs) — in Spain and Estonia — to provide our customers with business-level advice and consultancy. These NRCs have 100+ team members initially and we envisage opening more across Europe, driven by customers’ needs.

The NRCs add important complementary capabilities to our outsourcing offer. Some customers are now seeking more specialized business skills available closer to their key markets, offices and people. Fujitsu NRCs provide that new layer, with people who can speak business and IT in convenient, nearby locations. They are designed for customers operating in Europe seeking rapid access to highly skilled and agile teams to support their digital transformation projects.

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A more specialized touch

With a more specialized touch and strong regional cultural understanding, Fujitsu’s NRCs meet the current market’s demand for people who are closely in touch with local market dynamics. These resources are trained to handle complex projects with enough flexibility to act quickly, bringing greater competitiveness to our customers.

Our NRCs specialize in areas such as digital workplace, hybrid IT, multi-cloud, and business and application services, including cybersecurity. For example, the Spanish NRC is supporting a manufacturer of innovative semiconductor materials on a project to manage its IT infrastructure and help it focus on core business.

As technology advances and the world becomes more interconnected, businesses are constantly seeking ways to adapt to changing market conditions. Nearshoring is emerging as a key strategy for companies looking to improve their competitiveness, reduce costs and improve their agility. By leveraging the advantages of cultural and linguistic proximity, along with shorter, more reliable logistics and travel times, nearshoring – with Fujitsu’s NRCs as a leading example - is helping businesses to rebalance their operations and stay ahead of the curve in a rapidly evolving global marketplace.

To read more about it, please follow this link: Fujitsu Expands European DX Consultancy Capabilities : Fujitsu EMEIA

[1] https://www.logisticsit.com/articles/2022/09/21/europe-set-to-witness-%E2%80%98nearshoring%E2%80%99-boom-following-supply-chain-disruption