The Role of Economic Development Agencies in Location Selection

24 Jul 2018
by Hrishi Agarwalla, Anuja Patel

The onshore market activity has been growing and as the service providers and enterprises look to set up their delivery centers, they are presented with multiple location choices that can support IT-BP centers of varying sizes. The availability of a wide range of choices makes the location selection process within the United States a complex exercise that requires in-depth analysis, as location has significant impact on the scalability, operating costs, and ease of operations. In this scenario, economic incentives, both monetary as well as non-monetary, provided by the Economic Development Agencies (EDAs) play an important role in location selection, and this viewpoint also covers a few case studies to substantiate their importance.

CONTENTS

The key sections of this viewpoint include:

  • Factors for growing interest in onshoring
  • Different location options in the United States
  • Factors affecting location selection decision
  • Role of EDAs in service delivery center location selection
  • Types of economic incentives offered by EDAs in the United States
  • Impact of incentives on service delivery center location selection
  • Case studies to demonstrate the importance of incentives
    • AXA, Charlotte
    • Infosys, Indianapolis
    • IBM, Baton Rouge
    • DXC Technology, New Orleans

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