Location Analyses

Overview

North America | Latin America | Europe | Middle East | Africa | Asia Our Experience. Your Success.
 Location Analyses

North America | Latin America | Europe | Middle East | Africa | Asia

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 Information Gathering
• Mobilization of project team
• Detailed project planning
• Finalize scope, approach,
parameters for assessment
• Facilitate kick off meeting
• Data collection design
• Facilitate any additional
stakeholder interviews (Facilities,
IT or other subject matter experts)
North America | Latin America | Europe | Middle East | Africa | Asia
Analysis
• Complete stakeholder analysis
• Conduct research with third party
organizations & network
• Screen preliminary locations
• Data validation & analysis
• Coordinate with other functions
• Present initial findings
Recommendations
• Validate strategic assumptions
• Provide recommendations for top
2-3 locations
• Prepare financial impact analysis
• Present recommendations &
findings to leadership
• Provide recommended next steps
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Socio-economic factors
• Economic growth and stability
• Labour productivity
• Currency stability
• Investment in education
• Attitude towards foreign investment
• Investment in infrastructure
Office Space Factors
• Leased space rental rates
• Flexibility of leasing terms
• Building availability
• Proximity to employment sources
• Time zone compatibility
Operation Cost Factors
• Labour costs
• Telecommunication costs
• Utilities costs
• Depreciation of capital investments
• Tax costs
• IT purchasing costs
North America | Latin America | Europe | Middle East | Africa | Asia
Labor Factors
• Foreign language skills
• Skilled labour availability
• Total labour (including social) costs
• Education levels
• Recruitment costs
• Service and teamwork ethic Tax and Subsidiary Factors
• Work permits for foreign employees
• Absenteeism rates • For job creation
• For capital investment
• For (or towards) operational costs
• For employee training costs
• Recent tax rulings
• Cost of exit
Infrastructure Factors
Environment Factors • Office space accessibility
• Road, rail, airport accessibility
• House costs and supply
• Telecommunications network
• Costs of living
• IT service availability
• Training availability
• Medical services
• Crime rates
• Transportation availability
• Attitudes towards foreign residents
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 • Greenfield vs. Brownfield & On-shore vs. Near-shore vs. Off-shore
• Determine the economics of short-listed locations (e.g. labour costs, real estate costs, telecoms
costs, tax impacts)
• What are the key internal considerations affecting any location decisions?
• Are there any relevant tax considerations affecting or influencing these location decisions?
• What assessment have we done regarding local Employment regulations and the movement of
roles across borders?
• Have we been in discussion with local Workers Councils and/or Unions?
• Evaluate relocating more than just one service line
• Evaluate possibility of “two-tier” Shared Services and Locations
• Remember its is always best to eliminate rather than relocate
• Evaluate relocating specific functions to existing under-utilized brownfield sites
• Technology has enabled Shared Services to become more “virtual” in nature
North America | Latin America | Europe | Middle East | Africa | Asia
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 Average Weighted
CRITERIAS Weight Average
▪ We recommend two different methods
Weight
HUMAN DIMENSION 44% 43% have been considered to weight the
Skills 15% 14%
Costs 9% 9%
criteria for Location Analysis evaluation.
Availability 7% 6%
Language 8% 7% ▪ The first method considers the average
Culture 5% 5% weights identified by stakeholders
ECONOMIC DIMENSION 18% 16%
Stability 7% 6%
(column “Average Weight").
Regulatory environment 4% 4%
Currency 4% 3% ▪ A second method considers the same
Taxes 3% 3% average but then weighted by the size of
INFRASTRUCTURE DIMENSION 13% 14%
Availability 6% 6%
country revenue (column “Weighted
Costs 7% 7% Average Weight”)
GEOGRAPHIC DIMENSION 14% 17%
Availability 6% 7%
Accessibility 5% 6%
Business engagement 3% 4%
SOCIAL & POLITICAL DIMENSION 12% 12%
Risk profile 7% 6%
Stability 5% 5%
WEIGHTED
North America AVERAGE
| Latin America 100%
| Europe | Middle East 100%
| Africa | Asia
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THANK YOU
 CONTACT US

www.chazeypartners.com

Founder and CEO www.linkedin.com/company/chazey-partners

Phil Searle
philsearle@chazeypartners.com @ChazeyPartners │ #ChazeyPartners
M: +1 408 460 0785

North America | Latin America | Europe | Middle East | Africa | Asia

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