Determining Scalability Potential of a Location – Not as Easy as It Seems!!

13 Jan 2017
by Sakshi Garg

The ability to increase scale/headcount is one of the key location selection criteria for most companies (both enterprises and service providers). Whether expanding operations in an existing location or selecting a new location, the fundamental question that companies often deal with is, “How much scale can be achieved for a function in a location over 3-5 years?”

At Everest Group, our continued focus on tracking locations for global services delivery and interactions with stakeholders in this space has helped us in understanding a multitude of factors that impact scalability in a location. Over the years, an in-depth evaluation of location-based and company-specific factors has helped us understand complexities involved in estimating scalability potential of locations, and assist our clients in shaping an optimal location strategy.

In this whitepaper, we investigate several internal / company-specific and external / location-specific factors and their impact on scalability potential of a location. Typically, companies look for scale achieved by other peers in the same vertical doing similar work to assess scalability. While this approach offers a view of the scalability achieved in the past, it might not be sufficient to estimate a more “realistic” view of future scalability.

Scope and Content

This report presents views on the following topics:

  • External / location-specific factors impacting scalability potential
  • Internal / company-specific factors impacting scalability potential
  • Scenario-based analysis of impact of internal factors on scalability potential in a location
  • Implications for global sourcing practitioners

Membership(s)

Locations Insider

Market Vista

 

Page Count: 14