New Chargers general manager Tom Telesco saw firsthand the coaching job Bruce Arians did in 2012 when he stepped in for Chuck Pagano in Indianapolis. Telesco worked in Indy's front office for fifteen years, and spent 2012 as the vice president of football operations before landing the San Diego GM job. Apparently, Arians' work wasn't enough to get Telesco to hire him as the new head coach in San Diego, despite reports that Arians was very interested in the Chargers job and was open to working with Telesco again.
Instead, Telesco hired Broncos offensive coordinator Mike McCoy, the man who changed his offensive system mid-season in 2011 to accommodate Tim Tebow, and then changed it again in 2012 for Peyton Manning.
The San Diego job was viewed by many (himself included) as the best "fit" for Arians. The franchise has a veteran quarterback and a front offense leader that is familiar to Arians. Also, should Arians have been hired, it's likely John Pagano, Chuck's brother, would have been retained as the defensive coordinator.
With San Diego opting for McCoy and Cleveland (another franchise Arians reportedly showed strong interest in) hiring Rob Chudinski as their head coach, there are few openings left for Arians to depart Indy for. He is considered a "finalist" for the head coaching job with the Chicago Bears, but CFL head coach Mark Trestman is rumored to be the target hire of general manager Phil Emory.
This leaves the Philadelphia Eagles, and, as we have noted, Arians has a strong connection to the City of Brotherly Love. However, Seahawks defensive coordinator Gus Bradley is considered the frontrunner there. Yes, I'm aware the Jacksonville Jaguars have an opening at had coach. Like everyone else who follows and reports on the Colts, I'd be shocked if Arians takes that job. He hasn't even interviewed for it.
Thus, considering how things are trending on the head coaching front, it now seems much more likely that Arians will stay in Indianapolis and remain the offensive coordinator... after Jim Irsay gives him a rather sizable raise, of course.