The global services market witnessed an increase in activity in 2021, and the future looks positive from a growth perspective. Offshoring/nearshoring has seen an uptick as enterprises embark on a road to recovery post the pandemic.
Regarding global location strategies, Asia Pacific continues to dominate the global services space as major tier-1 Indian cities maintain their leader positions, and the Philippines continues to remain a leader for contact center and transactional BPS work.
China is primarily leveraged for digital functions around cloud, cybersecurity, analytics, and engineering/R&D services, and EMEA, Poland, and Ireland continue to be locations of choice for IT-BP delivery.
Within the Americas, Canada continues to witness growth in terms of new centers setups and capabilities development to serve the North American market at a moderate cost arbitrage over the leading US markets. Colombia is a leader for transactional BPS delivery, and Mexico and Argentina continue to maintain major contender positions for most functions.
Examine location-related developments and trends within the global services locations landscape to design a best-fit location strategy.
The client was a large financial services company with a global footprint
The client wanted to reduce cost and plan its future locations strategy
The project included peer-based evaluations and took an extremely granular view of each process
Because the project was data- and fact-based, all stakeholders quickly got on board with what ultimately became a three-year plan
Most companies are still more focused on the short-term, like building climate-resilient buildings and reinforcing existing infrastructure to make it more resilient to the impacts of climate change.
Location strategy is a long-term decision with significant investment and sunk costs. Once a company decides to start delivery operations from a particular location, it is an irreversible long-term decision due to the high capital and labor investment.
Companies will have to consider the impact of climate change on future location strategy decision making, which traditionally includes talent, cost arbitrage, and conventional operating and business environment parameters.
Climate change impacts different regions, locations, and geographies differently. Although two locations might be neighboring coastal cities, the impact of climate change could differ depending on the landscape. It is paramount for companies to understand the effects of climate change on the particular location they are accessing and the degree of its impact.
The long-term assessment should consider historical and predicted climate patterns, government mitigation measures and their effectiveness, and geographic factors to effectively formulate a comprehensive location strategy.
Service delivery leaders need to select locations, balance portfolios, proactively monitor location developments, and determine optimal work geographies.
Our Advanced Locations Tool tracks locations trends and offers data and insights needed to make work placement decisions.
Locations is no longer just about where; it's also about who and how.
Our unparalleled location datasets and expertise help you with virtually any service delivery location issues – selection, sustainability, portfolio balancing, and more.