Introduction

Global companies have built significant offshore presence and leverage multiple locations for service delivery. Mature buyers and leading service providers are typically located across 3+ regions with 5+ delivery centers in as many countries. As companies expand the size and scope of offshoring, they are increasingly focused on making the most effective service delivery investments. In order to achieve that, it is imperative that they make the right location decisions, as the choice of location often has a significant bearing on service delivery.

Our experience of working with companies on their global sourcing initiatives indicates that while companies are becoming more sophisticated in making location decisions, popular myths still influence some of these decisions. As a result of these myths, companies tend to accord undue importance to certain factors and also completely neglect some relevant considerations, sometimes resulting in suboptimal choice of locations.

This report explores five common location myths that we have often observed as part of our work with leading companies. The document describes these myths in detail as well as the on-the-ground market reality and experience of companies in location decisions.