Topic: Location Risks - Perceptions and Mitigation Measures

Global services have become mainstream, with organizations leveraging multiple locations for both technology and business process delivery. This has impacted the location portfolio of organizations. Besides the “traditional” offshore locations, such as India, the Philippines, Eastern Europe, and Latin America, global sourcing adopters also leverage the nascent locations in Africa, Central America, and the Middle East. All this has made risk considerations even more relevant and pertinent in location selection and optimization decisions.

Everest Group administered a survey in March 2012 to understand perceptions and plans of offshore adopters related to their global sourcing initiatives, which included perceptions related to location risks. The survey participants included mid- to senior-level executives working with leading buyers and service providers. The profiles of respondents were balanced across companies of varying sizes (in terms of total revenue) and current offshore leverage (in terms of headcount deployed in offshore locations).

This report focuses on location risks and perceptions across offshore adopters. The analysis and insights are derived from our experience of supporting leading organizations in their global sourcing initiatives. In addition, the report includes supporting data and examples from this survey. The document also provides implications for global organizations related to their overall risk monitoring and mitigation mechanisms.

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