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Geo-political risk comparison of onshore, nearshore and offshore locations

by King White, on Apr 21, 2015 8:44:00 AM

As companies seek to locate their back office operations into the optimal geographies, one of the most important factors considered is the geo-political risk of a location. Over the years, the term geo-political risk has grown to cover multiple factors, including corruption, crime, terrorism and economic stability. CallCenter_shutterstock_116097268 

“Geo-political risk factors have become one of the top six location factors evaluated on nearshore and offshore projects. Other site selection factors used include labor availability, labor cost, business climate, real estate and economic incentives.” said Brett Bayduss, Principal of Site Selection Group, who has completed more than 250 nearshore and offshore location studies. 


Geo-political risk factors are frequently the key variable used to eliminate markets during the early filtering process. As a result, Site Selection Group compared some the hottest onshore, nearshore and offshore locations based on several critical geo-political risk factors that are often considered when looking to open a new call center, shared service center or related back office operation. The following table provides a summary of the results, which are based on a scale of 1 to 7 with 7 being the most desirable score.

 

Geo-Political Risk Factors Comparison

 Terrorism

Crime &

Violence

Organized

Crime

Bribery

Soundness

of Banks

Canada 5.2 5.2 5.3 5.8 6.7
Colombia 2.7 2.7 2.8 3.3 5.8
Costa Rica 6.2 4 5.2 4.4 5.8
Czech Republic 5.8 4.8 5 3.9 5.9
Dominican Republic 4.9 3.3 4 3.3 5.6
Egypt 2.4 2.5 3.5 4 4.2
El Salvador 3.7 2.7 2.7 3.5 4.1
Guatemala 4.9 2.1 2.5 3.9 6
Guyana 4.9 3.7 4.3 3.1 4.8
Honduras 4.7 2.4 2.7 3.5 5.7
Hungary 6.2 4.8 4.9 4.2 4.8
India 4 3.8 4 3.5 4.3
Jamaica 5.5 2.1 2.9 3.8 5.3
Mexico 4.7 2.7 2.7 3.4 5.6
Nicaragua 5.2 4.5 5 3.4 4.8
Panama 5.2 3.9 4.5 3.8 6.2
Philippines 4.6 4.3 4.7 3.6 5.5
Poland 6 5.4 5.6 4.7 5.4
Romania 4.8 4.4 4.1 3.9 4.5
South Africa 6 2.8 4.3 4.5 6.5
United Kingdom 5.1 5 5.8 5.9 4.5
United States 4.2 4.2 4.7 5 5.4

Source-World-economic-forum

Note: Categories are abbreviated for formatting purposes of this blog. Terrorism is "Business Cost of Terrorism"; Crime & Violence is "Business Cost of Crime & Violence"; and Bribery is "Improper Payments & Bribes".  

 

Topics:Call CenterEconomic Development

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