Never before has a seemingly simple term taken so many versions and interpretations – “global delivery model”. What does it really mean – having a presence in many countries across the globe? It’s not just that. For many of the IT/BPO companies, it has really meant having a presence at the right locations in order to optimize the resources and provide the best possible solution for the client. Clients are not just demanding cost benefits but also more innovative delivery models. Choosing the right location or locations for delivery of their service is one of them.

The multinational players such as IBM, Accenture, EDS had the early multi-location advantage. For a large number of the India centric companies, India has been the largest delivery center and will perhaps continue to be. However, client demands and increasing competitive pressure have made these companies recognize a global delivery model as a key component to growth. The top three players in India – TCS, Wipro and Infosys have been adopting a global delivery model for the last few years. TCS, for example has created a strong presence in Latin America. Infosys has also created their own global delivery model which provides distribution of client activities and services with the proper integration. Some of the larger BPO players in India have been expanding their presence in Eastern Europe and Latin America.

While admittedly there may be issues with true global integration such as availability of talent pool or socio-economic or regulatory restrictions, the global delivery model is a necessity rather than a rarity.