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With the US business scene on a low, the IT Industry and especially the IT Outsourcing industry is trying to move to other places like the Middle east, Africa and South America. Shrinking growth rate in the US market coupled with the need to spread their business over a wider area is compelling the IT companies to set up development centers in South America, Africa and the Middle east.

Recently an Indian IT company Satyam computers announced that it is setting up a development center in a south american country. This was in response to the questions raised by investors about the long term growth potential of the matured US and European markets. This is in addition to its centers already functioning in the Europe, Australia, Russia and ofcourse the US. This is part of a larger trend among the leading Indian IT companies to move beyond the US. This is a derisking strategy on the part of IT firms as suggested by leading analytics firms worldwide.

The IT Companies can also look to provide their proven expertise in the countries like Mexico, Russia and Brazil which are largely untapped and offer immense potential for IT and BPO Services. The development centers at these countries are also being used to service parts of European market. The governments in the south american, african and some asian countries are providing immense tax incentives to the IT companies to set up their bases. This is an added advantage for the Indian IT Companies which are struggling due to the rising rupee. Companies prefer the locals for placement into their companies. Many papers have been published recently about the advantages offered to the industry by multi location centers.

So there are many reasons for the IT and BPO companies to move beyond their traditional locations. The Indian companies have also just started to focus on their domestic market too which is showing very high growth rates with the government increasing it IT budgets. So for the IT companies, there is a lot to gain from the multi location strategy.

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