Tuesday, October 03, 2006

Criteria for Global Sourcing

Doing business in emerging markets is all the buzz these days. But how does a company choose the right location. In a recent internal presentation I was given a closer look at what IBM looks for in an emerging country. From a general overview I don't think you'll be surprised that we look at:
  • talent and skill base
  • quality of local universities
  • overall population of the city and country
  • unemployment levels, which could or couldn't be relevant depending on how emerging is market is
  • economic issues: salary range, taxes, currency
  • space availability
  • infrastructure
Some things I initially didn't consider were:
  • availability of public transportation and the costs for employees
  • number and quality level of local subscontractors and suppliers
  • bandwidth
  • ease of recruitment
These are a just a few of the topics. The procurement folks that presented certainly know there stuff as IBM has opened dozens of new competency centers and outsourcing centers around the world over the last few years and all of them are doing quite well.


OnBoard Circuits said...

How about the ability to use the company's website to find relevant information and also ease of use for that site. We are finding that although our industry (printed circuit boards) is tight, our plan for our website relaunch is to make the site user friendly and really really easy to use, setting ourselves apart from the competition.

SPCB said...

That's great idea.