The Evolving Global Landscape

The Evolving Global Landscape

February 2011

The impact of offshore trends on CRE actions Offshore maturity ? When selecting locations for less complex business processes, choose geographies that yield a longer value proposition and where there is less competition. ? Determine where there is an opportunity or possibly a need to introduce more complex or value-added business processes to a location. ? Anticipate a shorter value-horizon associated with a new location as a result of increased competition and downward pressure on labor conditions. ? Recognize the need for an increased risk threshold, as the locations that offer low-cost value propositions will continue to transition into less developed countries. Location Alignment ? Before selecting a location, map business needs to a location?s ability to support the proposed activities to ensure alignment. ? Conduct a robust analysis of candidate locations, targeted around the major labor considerations referenced in Figure 5 (for example, be sure to factor labor salary escalation and currency exchange considerations into the location analysis). ? Understand trade-offs to be made between the opportunities and risks offered by a candidate location. ? Upon selection of an offshore location, identify alignment gaps where HR or other infrastructure strategies might be required to adapt or overcome market conditions. Long-Term Strategy ? Understand the implications of business trends to help shape your offshore strategy, especially in terms of aligning location with business goals and being prepared for the impact of competition. ? Think beyond your next location move and map out a multi-year strategy informed by your business objectives and the dynamics of the global marketplace. ? Recognize the growing need for multilingual capabilities in the development of your offshore strategy. This will become increasingly important as multilingual labor increases in solicitation and cost due to the continued offshoring of business activi

Keywords: Offshoring, labor conditions, market maturity, location strategy,

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