In today’s high-pressure BFSI environment, CIOs are expected to deliver innovation, security, and compliance — all while navigating skill shortages and cost constraints. The question is no longer if location strategy matters, but how to make it a competitive advantage. 

This blog gives CIOs a clear framework from Gartner to choose the right mix of onshore, nearshore, and offshore — paving the way for a best-shore model that reduces risk, boosts agility, and unlocks specialist talent for BFSI growth. 

The CIO’s Quick Guide: Determining the Optimal Location for IT Delivery 

According to Gartner, CIOs and sourcing leaders should evaluate four critical factors when deciding the optimal mix of onshore, nearshore, and offshore delivery: 

1. Business Complexity – Match expertise to the strategic importance, complexity, and regulatory requirements of the project. 
2. Stakeholder Proximity – Consider time zones, cultural alignment, and frequency of interactions. 
3. Internal Capabilities – Assess in-house maturity for managing advanced cross-border skills like AI, DevOps, and cloud-native architectures. 
4. Scalability – Ensure flexibility to scale resources rapidly without compromising delivery quality. 

Gartner predicts that by 2028, 60% of organizations with single-country outsourcing will move to multi-country strategies due to talent shortages, geopolitical instability, and compliance pressure. This shift demands a smarter, tailored approach rather than a one-size-fits-all location strategy. 

Why Best-Shore Solves the CIO’s Pain Points 

Best-shore delivery is the evolution of outsourcing—selecting the right blend of onshore, nearshore, and offshore capabilities for each workload based on these four factors. This model mitigates: 

• Cyber Risk & Talent Shortages – Cyberattacks on UK BFSI institutions rose over 60% year-on-year (UK Finance), while 48% of firms struggle to hire qualified tech talent. Relying on a single location increases vulnerability; a best-shore model taps global talent pools to strengthen security, resilience, and compliance. 

• Complex Compliance Landscape – Non-compliance with GDPR or upcoming DORA rules can cost up to €20M or 4% of global turnover. Strategic workload distribution ensures alignment with regulations like GDPR, DORA, and FCA. 

• Vendor Concentration Risk – With over 50% of BFSI outsourcing budgets tied to a few vendors, disruptions from outages, policy changes, or geopolitical issues hit harder. Diversifying delivery locations reduces this risk. 

• Misaligned AI Strategies – AI has surged to the most in-demand tech skill, with shortages up 260% in 18 months (Harvey Nash). Over half of BFSI leaders say AI projects underperform due to skill and cost gaps — a challenge best-shore models can address.

How to Approach Best-Shore 

1. Map Your Workloads – Begin with a comprehensive audit of all IT and business functions, classifying services (e.g., core banking platforms, AI pilots, regulatory reporting) by complexity, data sensitivity, and proximity requirements. Identify which workloads are mission-critical, customer-facing, or innovation-driven. 
2. Apply the Four Factors Strategically – Use Gartner’s framework not just as a checklist, but as a strategic filter to evaluate the best delivery location for each workload, considering cost-to-value ratio, risk tolerance, and long-term scalability. 
3. Select Strategic Hubs with Intent – Build a balanced and complementary portfolio of onshore, nearshore, and offshore partners, making sure each hub has a clear and distinct role in your overall delivery model. This means defining which locations will handle high-complexity, high-compliance work, and which can focus on scalable, cost-efficient delivery. 

Stay flexible — the optimal mix depends on the scope of your IT services: 

• IT Application & Infrastructure Managed Services → Often best served by predominantly offshore delivery to maximize cost efficiency and scalability. 

• IT Package Implementation Services → Works well with a balanced combination of onshore, nearshore, and offshore to blend proximity for collaboration with offshore efficiency. 

• IT Custom Software Development Services → Benefits from all three models, but with a predominantly nearshore focus for agility and closer alignment with business stakeholders. 

• Always factor in succession planning and prepare for potential geopolitical or regulatory shifts so your delivery remains resilient and compliant over time. 

Vietnam’s Strategic Position in Best-Shore BFSI Delivery 

As BFSI organizations diversify their delivery hubs to mitigate cyber risk, compliance pressure, vendor dependency, and AI talent shortages, Vietnam stands out as a strategic expansion choice. Its role within a best-shore mix directly addresses these challenges while positioning enterprises for long-term growth. 

• Talent Depth: 57,000+ IT graduates annually, many skilled in BFSI systems, AI/ML, and cloud — directly addressing the UK’s most acute skill gaps.  

• Cost-Quality Advantage: 30–50% lower costs than Western markets without compromising delivery quality, freeing budget for innovation. 

• Compliance Strength: ISO 27001, ISO 27701, and GDPR alignment ensure UK/EU regulatory readiness. 

• Time Zone Fit: Enables follow-the-sun delivery for faster response and collaboration. 

For CIOs, Vietnam’s inclusion in a best-shore strategy is not just a cost decision—it’s a resilience, compliance, and innovation lever. 

A strong proof point comes from CMC Global’s client lifecycle management (CLM) project for Swiss wealth and asset managers.  

By combining onshore teams in Switzerland with offshore delivery in Vietnam for a UK-based client, we leveraged Vietnam’s talent depth and cost advantage alongside Switzerland’s proximity to EU regulatory bodies—achieving stringent compliance, faster delivery, and optimized costs. 

By partnering with CMC Global, BFSI leaders can: 

• Mitigate concentration risk by diversifying delivery locations and vendors. 

• Accelerate time-to-market with pre-built delivery pods and scalable teams. 

• Enhance compliance with ISO 27001, SOC 2, and GDPR-aligned processes. 

• Leverage emerging tech expertise in AI, cloud migration, DevOps, and data analytics. 

Consider Vietnam in your sourcing strategy and explore a free proof of concept to see how our best-shore model can transform your IT delivery.