Offshore Location Strategy

When it comes to establishing Global Capability Centers (GCCs), organizations encounter a plethora of options regarding offshore locations. Terms like offshoring, nearshoring, and onshoring often dominate these discussions, underscoring the importance of choosing the right strategy for a successful program. Achieving this balance involves identifying optimal locations or a mix thereof that considers factors such as talent availability, supply-side risks, infrastructure, and costs.
Recognizing that there is no one-size-fits-all solution, enterprises must tailor their choices to align with their specific objectives, risk and regulatory environments, work types, and other pertinent considerations. Before narrowing down the offshore locations, several crucial questions must be addressed:
  1. Onshore vs offshore vs nearshore: Determining the comparative advantages of each option.
  2. Work types: Identifying the nature of the work to be moved to an offshore location.
  3. Required skills/competencies: Understanding the expertise needed for the identified work types.
  4. Top delivery locations: Assessing locations based on talent availability and financial viability.
  5. Infrastructure suitability: Evaluating whether the existing and planned infrastructure in selected locations meet enterprise needs.
  6. Risk and regulatory alignment: Ensuring compliance with enterprise policies and frameworks.
  7. Work time considerations: Factoring in time zone differences and implications.
  8. Language proficiency: Assessing the importance of language skills for effective communication.
  9. Local leadership availability: Determining the ease of finding capable leadership within chosen locations.
Decision-making typically occurs in two phases: selecting the country or countries and then narrowing it down to specific cities within those countries. While criteria for city selection may mirror those for countries, additional considerations come into play when choosing multiple cities, especially concerning business continuity.
Gloplax, leveraging data-driven insights, has conducted a thorough analysis of several popular offshore locations in India. These cities emerge as highly optimal choices for establishing GCCs due to their diverse advantages and suitability for various enterprise needs.