Browse
related articles
Implications for global location decisions
"The clear message from the 2006 Global Services Location Index is that short-term cost advantage should not be the primary driver of location decisions," concluded Ziegler.
"Currency appreciation and demand growth in key locations will gradually erode their cost advantage. At the same time, continued improvements in infrastructure and policy-making in emerging markets will slowly erode the business-environment competitive advantage of developed countries. Companies are finding other advantages, including a time travel that that roughly straddels the Worlds three biggest economies - North America, Europe and Asia. With business booming in the Middle East, there is also more demand for Arabic speakers. The key differentiator in the future will be the talent base and future projections of skilled labor supply will be imperative for companies making long-term location decisions."
The results of this year's Index are provided below.
About The 2007 Global Services Location Index
The A.T. Kearney Global Services Location Index analyzes the top 50 services locations worldwide against 41 measurements in three major categories: cost, people skills and availability, and business environment.
The Index assigns weightings reflecting the drivers of offshoring decisions based on A.T. Kearney research and engagement experience. Because cost advantages have been the primary impetus behind offshoring, financial factors constitute 40 percent of the total Index weight. People skills and availability and business environment each receive a 30 percent weighting.
Medilyn Manibo, Assistant News Editor
