Unlocking the Best Geographies for Outsourcing

A Comprehensive Guide

If you are stuck in a matrix of colors and numbers, trying to evaluate which location is right to outsource your business to, you’re not alone. The endeavor of pinpointing the flawless geography for outsourcing resembles selecting the right piece in a mammoth jigsaw puzzle. Numerous companies grapple with this process, often swayed by misleading criteria. Surprisingly, personal motivations, like favored travel destinations of decision-makers, can cloud judgment. This pivotal decision isn’t just about current convenience but about long-term strategic alignment. While various elements play into this intricate decision-making process, the stakes are soaring higher than ever. Choosing astutely can lead to seamless, efficient operations.

On the flip side, a hasty or ill-informed decision can usher in a myriad of unforeseen challenges. Given the lengthiness and intricacy of the site selection journey, hitting the bullseye on the first attempt is not just desirable—it’s imperative. The cost of a misstep isn’t just financial; it encompasses time, effort, and brand reputation.

1. Linguistic Capabilities

When you’re pinpointing a location, it’s imperative to ask: What languages do you primarily need to support? If your business caters to 99% English speakers and a mere 1% in French, it’s worth contemplating whether you should focus solely on dominant English-speaking markets, or if having French capabilities is vital. Remember, the quality of language support isn’t just about ticking a box – it’s paramount to your brand’s perception.

2. Cultural Affinity

When serving US clients, locations with cultural similarities can result in more fluid, harmonious interactions. The better the cultural understanding, the better the conversation.

3. Accessibility

If frequent onsite visits are a part of your strategy, ponder upon the ease of travel to and from your chosen location. Factors such as flight durations, frequency, and immigration regulations can have a significant impact on your operations. 

4. Safety First

No business can thrive in an environment where safety is compromised. Ensure the region you’re considering has a reliable track record for security and stability. However, keep in mind that just pulling country-wide statistics can be misleading. Its important to take a wholistic approach to safety ratings.

5. Labor Cost Considerations

While affordable labor can be tempting, it should never come at the expense of quality. Striking the right balance is key. However, if you’re looking at outsourcing, you probably are looking for some cost savings, therefore find the correct balance that’s important to your business.

6. Saturation Insight

Over-saturated markets can pose threats such as high employee turnover. It’s essential to have a pulse on the current outsourcing saturation of your chosen geography. While saturation rates are highly debated, the most widely used statistic is anything over a 20% saturation rate can become problematic (active contact center jobs / employable labor pool). 

7. Political Stability

A politically volatile region can be risky. Ensure you’re setting up shop in a place that promises consistent governance.

8. Education Standards

The educational background of your potential workforce can be a determinant of the quality of service you provide.

9. Robust Infrastructure

To maintain flawless operations, the location must have a solid IT infrastructure that ensures minimal downtime. This includes electricity outages.  While most reputable outsourcers will have invested in UPS and generators to run the operation, equipment fails from time to time.  Additionally, the viability of WFH is highly dependent on the electrical grid.

10. Job Appeal

In regions where outsourcing jobs are highly sought after, you’re likely to attract a more dedicated and enthusiastic workforce.

Creating a weighted matrix of these factors can be invaluable. However, while this method can shortlist potential locations, the success of an outsourcing venture isn’t solely dependent on geography. The competence and quality of the outsourcing partner often overshadows other factors. Thus, once you’ve zeroed in on your top geographies, the real test begins on the ground.

We understand that evaluating all these aspects can be overwhelming. If you’re unsure where to begin, there are third-party resources ready to guide you through this intricate journey. In partnership with Newmark, we are excited to present our Global Site Selection whitepaper. This valuable resource delves deeper into the intricacies of selecting the perfect geography for your outsourcing needs.  Click on the image at the top of this article to download.

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