Over the last two decades, we’ve seen global delivery evolve from a cost-focused initiative to a strategic lever. IT services firms have built centers of excellence offshore, experimented with nearshore models, and found the right mix of skills, price points, and time zones to meet customer demand.
But the playbook is changing. Fast.
Between the rapid advancements in AI and the shifting ground of global trade policies, we’re now navigating a new era — one where IT services firms have to be more agile, thoughtful, and forward-looking about where and how talent is built.
AI Is Changing the Talent Equation
Let’s talk about AI first—because it’s the elephant in every boardroom.
What we’re witnessing isn’t just automation at the edges — it’s a fundamental reshaping of how work gets done across the entire delivery spectrum. AI isn’t just taking on routine back-office tasks anymore, it’s writing code, generating test scripts, drafting documentation and even proposing solution architectures. This is the kind of work that many firms used to assign to junior engineers in offshore teams. Now, AI is doing it in seconds.
All of which is prompting companies to rethink the role of junior talent, the locations they invest in, and the kinds of skills needed to build for the future.
Does this mean companies should shift away from offshore and near shore teams? Not exactly.
What it means is that the profile of the ideal delivery team is changing. Companies are looking for engineers who can co-pilot with AI, not be replaced by it. People who bring contextual understanding, domain knowledge, creativity AND strong technical chops.
Darshan Deshmukh, a Tercera advisor and president of ProcureAbility (a provider of procurement services including advisory, managed services, digital solutions, staffing, and recruiting) said it best: “As organizations focus on the work design aspects of AI, talent with strong critical thinking skills and a high comfort level with change will be essential.”
It’s no longer just about cost arbitrage — it’s about value creation.
This is where nearshore and offshore strategies take on a new importance. What were once hubs tuned for scale and efficiency must now tune for capability and innovation. It’s no longer just about cost arbitrage — it’s about value creation. Nearshore and offshore teams have always been force multipliers, but with AI enablement, they become even more so. Compared to today, tomorrow’s global delivery centers may look leaner, but they will be far more strategic, more productive, and laser-focused on delivering real business impact.
When Politics Meet the Playbook
The overall political dynamic is also forcing businesses to rethink playbooks for global delivery centers (GDCs). Tariffs and barriers to cross-border services, including visa restrictions and digital and data localization laws, have the potential to increase costs over time. If the entire objective for a GDC was purely for lower labor rates and higher margins, just know the math might change.
At the same time, a rise in economic nationalism and isolationist policies across some major markets are prompting companies to reconsider just how “global” their delivery strategies should be. From rising political pressure to repatriate jobs, to new legislation that favors domestic hiring or penalizes offshore spend, companies are navigating not only economic trade-offs but reputational ones.
This doesn’t mean abandoning global teams — but it may shift the calculus on where and how they grow. Countries seen as more politically aligned or economically stable are gaining favor for nearshore and offshore expansion, and delivery leaders are being asked to justify how those teams map not just to cost and skills, but to risk resilience. GDC strategy is no longer just an operational decision. It’s becoming a geopolitical one.
That doesn’t mean the value around having global delivery teams gone. Far from it.
Offshore and nearshore teams continue to be a critical part of the delivery strategy — because of the talent, not just the cost. These regions are home to highly motivated, tech-forward professionals who are hungry to grow and quick to adopt new tools, including AI. Regions like Latin America, Africa, Eastern Europe and India have massive pools of talent that are not only delivery-ready but eager to lead and bring in fresh ideas.
The key is investing in the infrastructure around that talent. Savvy companies are doubling down on training platforms, AI enablement, onboarding programs, and leadership development in these regions — because that’s what turns a capable workforce into a competitive advantage. It’s not just about who you hire or who you partner with in these regions. It’s about how you support them, onboard them into your own processes and (hopefully AI-enabled) systems. It’s about how connected they feel to the customer’s mission.
Savvy companies are doubling down on training platforms, AI enablement, onboarding programs, and leadership development in these regions — because that’s what turns a capable workforce into a competitive advantage.
For example, Zennify – a Tercera portfolio company specializing in data and CX for regulated industries – is finding ways to tap into emerging talent ecosystems like Africa through partnerships. According to CEO Chris Conant, “by prioritizing training, contextual understanding, and collaborative intelligence with AI, we’re not just preparing for the future — we’re actively creating it.”
Advice for Navigating Shifting Terrain
Tariffs and other geopolitical trends may be introducing volatility and change to existing playbooks, but near-term policy shifts shouldn’t fully dictate long-term talent strategy. The firms that win will be the ones who stay committed to nurturing global talent ecosystems — even when it’s not the easiest path.
As delivery leaders, we have to look past the noise and focus on building resilient, future-ready teams. That means balancing risk today while investing in the talent we’ll need tomorrow. Here are a few areas to consider this year:
Re-evaluate your delivery footprint with today’s lens
The assumptions that guided your offshore or nearshore strategy even two years ago may no longer hold. Tariffs, rising service costs, and policy shifts are impacting regions differently — and fast. It’s time to take a fresh look, with an eye on agility, not just rates.
Turn global teams into learning engines
One of the biggest bright spots in all of this? Nearshore and offshore regions are packed with ambitious, capable talent—and they’re often the most enthusiastic adopters of AI tools and new delivery models. In fact, 52% of enrollments in Coursera’s Gen AI classes are from emerging markets. The most successful IT services firms are not just leveraging that—they’re building training frameworks around it. By investing in structured AI enablement and skill acceleration in these regions, you create a flywheel of growth: eager talent, smarter delivery, happier clients.
Plan for uncertainty—because it’s here to stay
Whether it’s a policy shift, a trade rule change or a platform breakthrough, surprises are the new normal. Design flexibility into your resourcing model so you can pivot quickly when the world throws something new at us. Some actions we suggest include developing a multi-region strategy, leaning into a digital workforce culture and reviewing contracts for risk and optionality.
The old model isn’t broken, but it is being rewritten. And as delivery leaders, we have a responsibility to reimagine what great delivery looks like in a world shaped by AI and tariffs.
The world is shifting fast. Make sure you’re moving with it.
