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Country Assessment Framework

Country Assessment Framework. Jonathan De Luzuriaga Managing Director. Version 1.0. January 2010. Looking at Fresh Options. Why are clients seeking new geographies? Why will existing solution not be enough in the new decade? Closer to Customer New Generation of Services

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Country Assessment Framework

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  1. Country Assessment Framework Jonathan De Luzuriaga Managing Director Version 1.0 January 2010

  2. Looking at Fresh Options Why are clients seeking new geographies? Why will existing solution not be enough in the new decade? Closer to Customer New Generation of Services Specialized Skill Requirement Established Locations inhibited by Talent Saturation • Localization • New Customer Segments • Evolving and Developing Processes • Integration of new countries into the Global Economy(Example: Brazil, South Africa, China) • Customer Demand becoming more Sophisticated

  3. Key Question: Where should we locate? Employability What proportion of a city’s talent is EMPLOYABLE in the outsourcing and offshoring (O&O) industry? Complexity Handling Capability What PROCESS is most suitable for the employable talent available in a city? Cost Vs. Effectiveness Which location can yield maximum COST BENEFIT and most EFFECTIVE OPERATIONS Outsourcing Destination OUTSOURCING DESTINATION providing Best TALENT Best COST STRUCTURE & MINIMUM RISK for SPECIFIC OUTSOURCING REQUIREMENTS

  4. Parameters influencing selection: Process Requirements and Geographical & Operational Delivery Models

  5. One destination, Various Perspectives Buyers / Clients Cost Advantage Cultural Affinity Near Shore / Time Zone IP Laws and Risk Factors Client Potential Infrastructure Scalability Government Support Foreign Investments Export Revenues Economic Progress Employment Generation LOCATION Service Providers Government & Policy Makers Each destination is viewed differently by the various stakeholders, leading to different: “Judgments – Perceptions – Decisions”

  6. Tholons Location Assessment Framework Business Catalyst Infrastructure Risk Profile Quality of Life Scale & Quality Cost • Labor Pool • Skills Availability • Graduate Output • Complexity • Cost of Operations • Cost of Training • Cost of Real Estate • Cost of Bandwidth • Cost of Living • Cost of other Infrastructure • Government Benefits/Incentives • Competitive Landscape • Untapped Labor Pool • Currently Employed • Connectivity • Bandwidth Availability • Transportation • Commercial Risk • Political Risk • Natural Risk • Social Risk • Social Infrastructure like Education Institutions, hospitals etc. • Non Work Culture • Availability of Recreation/Leisure facilities Skills and Scalability Savings Business Environment Operational Environment Risk to Business Non-Business Environment Each city has unique dynamics and capabilities to offer to the Services Globalization Industry, the Tholons Location Assessment Framework acknowledges and helps identify that

  7. Top 5 Offshore Nations China Ireland Huge scale and very competitive cost; however, English has proved to be a huge constraint on growth potential Most culturally aligned and offers high productivity, facing stagnancy due to high cost Philippines Top voice based contact center destination, has been unable to evolve towards non-voice/IT services Brazil India The powerhouse of the MERCOSUR with an attractive domestic market The Global Leader, but increasing competition and rising demand-supply gap in talent pool

  8. Next 5 Offshore Nations Canada Russia Nearest destination with perfect cultural alignment to US; minimal cost advantage R&D center of the world with abundant skill availability Mexico Multilingual near-shore targeting to US Hispanic market, has taken a bite from Canada’s market share Vietnam Poland Lowest cost destination in the world, however, struggling in evolving towards high-value ITO services Offers scalable and sustainable talent pool among its competition with the smaller countries in EE

  9. Emerged: With Scalability and Cost Advantage Indian cities’ service delivery maturity and cost-effectiveness bolster its position as a leading outsourcing location. Dublin as an early entrant in Europe with its skills availability and nearshore proposition Manila, as well as the leading cities in India, maintain their leverage by capitalizing on the labor pool’s language skills and scalability Due to the global recession, the Top 50 list has seen minimal movements. While the emerged locations have retained their positions, emerging locations have undergone consolidation with “sustainable advantage” being the theme for differentiation.

  10. Contact Jonathan De Luzuriaga Managing Director jonathan@tholons.com North America Office 5 Penn Plaza, 23rd Floor New York, NY 10001 Phone: +1-646-290-9320 Fax: +1-646-349-3546 Europe Office Asmec Centre Eagle House, Bracknell Berkshire RG12 1HB, UK Phone: +44-1628-566140 Asia Offices India Office2/10, 2nd Floor, 80 Ft Road RMV Extension Stage II Bangalore 560 094, India Phone: +91-80-23519760 Philippines Office Unit 803, Richmonde Plaza 21 San Miguel Ave., Ortigas Center Pasig City, Philippines Phone: +63-2-635-9236

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