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The United States as a low-cost location and the implications for financial institutions

Changing market conditions have overturned preference for and the suitability of sourcing locations for financial institutions. This leaves the US in a relatively better position for consideration as a low-cost location than it has been in years.

Many traditional locations have undergone profound macroeconomic and geopolitical changes (e.g., wage inflation, currency appreciation/depreciation, political instability, and skills shortages), undercutting their longstanding dominance as a market of choice for sourcing. At the same time, the increasing focus on moving beyond information technology services to business operations places a premium on skills availability, political stability, and geographic proximity – all positives for lower-cost locations in developed countries. We believe the US, in particular, will benefit from this trend.