Location Optimization

Globalization has led to a proliferation of offshore locations for the delivery of services. As global services become mainstream, adoption is fast spreading across newer geographies. This is amplified by the fact that over the last decade the number of credible offshore locations has increased from 25 to 150+. Each location brings its own set of benefits and unique risk profile. In such an environment, it is important to have an in-depth understanding of locations to both extract maximum value and mitigate a range of risks from global sourcing programs.

Everest Group’s Location Optimization practice assists global sourcing stakeholders navigate through the complex terrain of offshore locations. We assist leading companies on a wide spectrum of location strategy issues including:

• Shortlisting and due-diligence for a particular process/function
• Skills availability and scalability
• Workforce preferences
• Arbitrage sustainability
• Portfolio risk assessment and optimization

Everest Group’s Location Optimization practice combines deep understanding of the global services landscape with robust analytical skills, and is built on a strong foundation of dedicated focus, subject matter expertise, and years of experience assisting clients on location strategies. Our key differentiators include:

• Dedicated team of analysts with regional expertise across Asia, Africa, Central and Eastern Europe, and Central and Latin America
• Comprehensive coverage of 150+ locations across Asia, Africa, Central and Eastern Europe, Central and Latin America, Continental Europe, the United Kingdom and the United States
• Proprietary databases that contain on-the-ground intelligence and understanding based on input from market participants
• Robust methodology that provides in-depth quantitative and qualitative insights on relevant location decision parameters
• Practical insights anchored on client experiences and feet-on-the-street perspectives

The key recipients of our location optimization services include buyers and service providers interested in assessing and monitoring locations from a financial and risk standpoint. We also work with country associations and investment agencies to develop strategies to effectively position their location in the offshore space, target appropriate investors, and further enhance their value proposition. Our comprehensive suite of offerings help stakeholders become informed and aligned, and make strategic location decisions.

Everest Group’s Location Optimization offerings include:

• Location information: Databases providing in-depth coverage of 150+ locations across four key dimensions - labor pool, operating cost, market activity, and language capabilities – available in two forms:
  • Standard Location Database: market activity, operating cost, wage inflation, and attrition in 23 offshore locations
  • Customized Location Database: customized per client requirements, including select cities, function specific details, and labor pool data (for information beyond the standard 23 offshore locations)
    
• Location monitoring services: Track more than 50 risk parameters across each of the 150+ global services locations using our proprietary risk monitoring tool. The tool has built-in functionality to synthesize views across risk factors and cities via a risk assessment dashboard. In addition to highlighting key events that can impact operations, the dashboard also provides a forward-looking view of locations. The deliverables from our location monitoring services include data to assist tracking of risk in offshore locations, and reports for senior and executive management briefings.
• Custom engagements: Tailored to meet each client’s unique requirements, these engagements broadly fall into three categories:
  
  • Thematic assessments: Includes a wide range of topics, such as a location’s language capabilities  (e.g., Spanish, German, Asian) domain skills (e.g., SAP, Java, mainframe) and workforce preferences, to determine attractiveness and sustainability
    
  • Location prioritization, shortlisting, and due-diligence: Our scalable methodology not only provides a relative comparison of different locations per a risk-reward framework, but also addresses high-touch issues including comparisons of specific sites within a city for service delivery, and facilitation of on ground location due diligence visits for client stakeholders
    
  • Location portfolio assessment: Detailed analyses to ascertain the overall sustainability of a service delivery portfolio, including strategies around placement of processes and functions across locations to optimize the portfolio, and business continuity planning requirements
    
  

For more information on Everest Group’s Location Optimization practice, please download our Location Optimization Fact Sheet.