Global Services Location Index (GSLI)
I found this index really interesting because of the three components that it takes into account for: financial attractiveness, people skills and availability, and business environment. This index informs companies which countries are suitable for offshoring services.
I have always thought that companies only consider the cost of production, so if a country with an extremely low cost of labor, such as Bangladesh, the company would prefer to go there than other country. However, with previous knowledge that Bangladesh has an extremely low cost of labor due to the history of Nike, I was surprised that Bangladesh wasn't even in the Top 25 of GSLI. This may be due to the low people skills and availability and business environment in comparison to other countries.
It was also surprising to see India being the leader in the GSLI, with 3.11 financial attractiveness, 2.76 people skills and availability and 1.14 business environment and United Kingdom being the 16th, which is a relatively high ranking.
Do these top offshoring countries see this as positive or negative?
I would say that these countries definitely see it as positive the closer to the top they are. Ultimately they are trying to portray themselves as a stable climate for investment and if an index like this comes out and puts them near the top, that helps them present themselves in a better light.
ReplyDeleteI agree with Mr Barnes' anwser that these countries would see this as a positive being closer to the top because this would make them more attractive to companies wanting to invest. With more TNC's and other companies wanting to open factories or call centers or anyother form of offshoring services in that country, ther will have more direct forgein investment and therefore the economy will get a boost and people will have more jobs.
ReplyDeleteNot to be too repetitive, but I do think the top offshoring countries see the index as a positive. I think what's interesting is the things that they include in the index: financial attractiveness, people skills and availability, and business environment. Why those three? And how do they calculate something like "business environment"?
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