The decision-making process of where to locate your Shared Services is not straightforward. The answer depends on your business model. Wage arbitrage and tax incentives are marginal factors in the overall decision process. An organization can have conflicting internal objectives and priorities influencing the choice to realize a shared service center.
Your business needs to follow a sound evaluation process based on a set of criteria tailored to fit your marketplace and consider your business’s peculiarities. A shared decision amongst stakeholders can ensure that the organization makes the right decision and will deliver the best long-term solution with the right level of risk.
The location risk assessment considers internal and external risks that could impact the location choice. The location assessment evaluates all potential locations against static and dynamic criteria. The location determination is made by considering different location-related factors such as talent availability, accessibility, infrastructure, real estate costs, local incentives, and others.
All these factors must be considered when deciding where to locate your Shared Services. A robust evaluation process will ensure that you make the right decision for your organization.
Selecting a location for your shared services or global business services organization can be difficult and often complicated by political factors. The decision can also be important for achieving desired efficiencies, ensuring continuity of operations, and fostering future growth.
When it comes to location assessment and determination, a structured approach has plenty of benefits. Our approach includes several key elements, such as criteria identification, site research and evaluation, and site visits. Our consultants also prepare a business case to support our recommendations. This detailed approach allows you to make a decision based on facts and defensible to your stakeholders – outcomes critical to your future success.
Sussex Economic Advisors is now part of ScottMadden. We invite you to learn more about our expanded firm. Please use the Contact Us form to request additional information.
