outsource issue 31 - (Page 96)

TOP TEN LOCATION SELECTION Our Top Ten series continues with tips for anyone considering setting up a centre – or outsourcing somewhere new… Marcel Horst, ExcelSource Marcel Horst is MD of ExcelSource, a business transformation advisory company focussed on support services in an organisation. S o, you’ve finally convinced your board that in order to save costs, standardise processes, consolidate functions, improve service quality – and because all of your competitors are doing it – you need to establish a service centre in a new location, be it offshore, nearshore, or maybe even local. The board all say in unison, “Yes, Tom” – always a good name for a transformation lead – “so where should we place this new service centre?” So that you can anticipate this question and respond in an insightful manner, I have created a useful list of ten top tips for you to take into consideration when making a location selection. Whilst this list does consider outsourcing, it may not always be possible to influence location choice when you consider an outsourced delivery model. Hence, this article does look at both assessing thirdparty location choices as well as internal location assessment for things such as shared service centres or captive software development centres. 1 Establish clear business requirements The obvious starting point, but we still find so many projects that do not clearly articulate this right up front. Then much later, having spent much time and effort, the company goes back to this point because the various options do not match business needs. Often these requirements are linked into a broader business strategy. Location decisions can be expensive and are invariably long-term. So link the business requirements for a project that “Location is the key to most businesses.” – Phyllis Schlafly 96 ●● top ten APP .indd 96 www.outsourcemagazine.co.uk 22/3/13 11:20:44 http://www.outsourcemagazine.co.uk

Table of Contents for the Digital Edition of outsource issue 31

Upwardly Mobile
Keys to Driving Supply Chain Outsourcing Success
Biography of a Carve-Out
Culture and Values
Redefining the Law Firm Delivery Model
Sharing the Glory
Norn Ironman
Breaking the Outsourcing Conundrum
NOA Round-Up
Back from the Summit
Losing the Race Before You Put On Your Trainers
Innovate to Accelerate
Comparing Clouds
People Power
Making an Impact
Home or Away?
Dead and Buried?
So What Now?
The Legal View
Top Ten
NelsonHall Round-Up
Sourcing Sage
Online Round-Up
The Deal Doctor
Inside Source
The Last Word

outsource issue 31