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Establishing a Customer Support CentreA cost/quality comparison(Based on information from the Financial Times fDi Benchmark tool – April 2012)
Competitiveness of Scottish Central Belt
Value for Money
Overall Attractiveness
Quality of the Location
Annual Operating Costs
Quality Competitiveness
General Business Environment
Labour Availability and Quality
Presence of an Industrial Cluster
Infrastructure and Accessibility
Living Environment
Contents
The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by
the Financial Times (FT)
fDi Benchmark compared Scottish Central Belt with the leading locations globally for Customer Support Centres
based on an analysis of over 55 quality factors and 10 cost factors
A key emphasis was placed on:
- Presence of industrial cluster
- Labour availability and quality
- Infrastructure and accessibility
Other factors including the living environment and general business environment were also
assessed
Benchmarking Study
Project Profile Overview
Cost Factor Usage Amount
Property
Total Occupancy cost (in town office rent) 3,500 m²
Telecoms
National Call 2,700,000 Mins
Intl Call to US (International Call) 1,000,000 Mins
Intl Call to France 1,000,000 Mins
Intl Call to Germany 1,000,000 Mins
Intl Call to Italy 1,000,000 Mins
Intl Call to Sweden 1,000,000 Mins
Intl Call to China 1,000,000 Mins
Intl Call to Singapore 1,000,000 Mins
Intl Call to India 1,000,000 Mins
Intl Call to Brazil 1,000,000 Mins
Intl Call to Mexico 1,000,000 Mins
Weighting Model Overview Weight
Presence of an Industrial Cluster 40
Labour Availability and Quality 35
Infrastructure and Accessibility 15
Living Environment 5
General Business Environment 5
Employee Type Profile Head count
General Management Business Unit Manager 1Project Manager 15Marketing Customer service rep 280Customer Services Manager 25Head of Customer Services 1Administration Facilities/Office Services Specialist 20Secretary 8
fDi Benchmark Matrix
The fDi Benchmark Matrix shows the trade off between cost and quality across the 8 selected locations for the Customer support centre profile. The average cost and quality score is 100 for the selected locations.
Source: fDi Intelligence, from the Financial Times Ltd
The ‘ideal’ quadrant is the
top left
(high quality/lower operating costs)
fDi Benchmark Matrix
• The matrix is based on the weighting and cost model for the Customer support centre profile. The weighting model identifies the key location criteria for the project and the cost model shows the primary cost inputs for the operation. The cost and quality scores are calculated using real data on all the location requirements and cost inputs.
• The results indicate the different location solutions for the investor as follows:
• The Scottish Central Belt offers higher quality at lower cost than the average of all the selected location
• Amsterdam, Barcelona offer higher quality but at higher cost
• Belfast, Cardiff, and Manchester offer lower cost, but at lower quality
The Operating Cost value is in GBP - United Kingdom Pound
Location Qualitative ScoreOperating Cost
IndexOperating Cost
Value
Amsterdam 104.6 114.7 19,379,243
Barcelona 157.3 108.4 18,316,694
Belfast 73.2 83.4 14,091,752
Cardiff 69.1 87.6 14,797,931
Cork 50.7 103.9 17,568,902
Dublin 95.6 116.0 19,600,129
Manchester 99.5 98.3 16,615,809Scottish Central Belt 148.5 87.8 14,847,214
Source: fDi Intelligence, from the Financial Times Ltd
Location Attractiveness Index
The location attractiveness index shows the overall attractiveness of the 8 selected locations for the Customer Support Centre profile. The ratio of quality to cost is 50:50
Source: fDi Intelligence, from the Financial Times Ltd
Cost Quality Competitiveness
The cost quality competitiveness uses the results of the fDi Benchmark Matrix to show the value for money of each location option. The graph shows that:
The top locations offering the highest quality for a given level of cost are the Scottish Central Belt and Barcelona The Scottish Central Belt and Barcelona offer an above average level of quality and good value for money as there
relative quality is higher than their relative cost.
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
The annual operating cost calculation for Customer support centre is based on the following primary input costs: Labour Cost, Property and Telecoms
The average cost across the selected locations for Customer support centre is GBP16,902,208 The greatest cost saving between the selected locations is GBP5,508,378 per annum The values in the chart below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
Location Labour Cost Property TelecomsAmsterdam 17,189,162 1,208,931 981,149Barcelona 14,093,057 2,443,369 1,780,266Belfast 11,170,782 811,750 2,109,218Cardiff 11,500,083 1,188,629 2,109,218Cork 15,003,150 786,370 1,779,380Dublin 16,565,365 1,255,383 1,779,380Manchester 12,955,249 1,551,341 2,109,218Scottish Central Belt 11,293,641 1,444,354 2,109,218
The locations with the lowest operating costs are Belfast and Cardiff
In terms of the individual cost factors, the locations with the lowest costs are:
Labour Cost: Belfast and the Scottish Central Belt Property: Cork and Belfast Telecoms: Amsterdam and Cork
The values in the table below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
The quality competitiveness assessment is based on the weight model for the Customer support centre profile which assesses each location across the following location factors: General Business Environment, Labour Availability and Quality, Presence of an Industrial Cluster, Infrastructure and Accessibility and Living Environment. The average score for the selected locations is 100.
The locations with the highest quality scores are the Scottish Central Belt and Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
Location
General Business
Environment
Labour Availability and
QualityPresence of an
Industrial ClusterInfrastructure
and AccessibilityLiving
EnvironmentAmsterdam 4 22 46 27 5Barcelona 3 71 59 18 6Belfast 5 20 33 10 5Cardiff 5 21 28 10 5Cork 5 18 12 11 5Dublin 5 30 41 14 5Manchester 6 42 31 16 5Scottish Central Belt 6 56 70 12 5
In terms of the individual quality factors, the locations with the highest scores are:
General Business Environment: Manchester and the Scottish Central Belt Labour Availability and Quality: the Scottish Central Belt and Barcelona Presence of an Industrial Cluster: the Scottish Central Belt and Barcelona Infrastructure and Accessibility: Amsterdam and Barcelona Living Environment: the Scottish Central Belt and Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
13
The quality competitiveness breakdown for General Business Environment for the Customer support centre profile is shown below
The locations with the highest overall scores for General Business Environment are Manchester and the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
LocationEconomic growth
and stabilityOperating risk
Taxation and incentives
Regulatory environment
Amsterdam 1.31 0.57 0.46 1.63Barcelona 1.61 0.52 0.37 0.96Belfast 0.70 2.55 0.47 1.76Cardiff 0.55 2.55 0.47 1.76Cork 0.68 1.34 0.64 2.19Dublin 1.15 1.34 0.64 2.19Manchester 1.15 2.55 0.47 1.76Scottish Central Belt 0.86 2.55 0.47 1.76
In terms of the individual quality criteria within General Business Environment, the locations with the highest scores are:
Economic growth and stability: Barcelona and Amsterdam Operating risk: Manchester and the Scottish Central Belt Taxation and incentives: Dublin and Cork Regulatory environment: Dublin and Cork
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
The quality competitiveness breakdown for Labour Availability and Quality for the Customer support centre profile is shown below
The locations with the highest overall scores for Labour Availability and Quality are the Scottish Central Belt and Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
LocationOverall size of labour market
Tightness and competition for
labour
Experienced industry-specific
staff
Flexibility of labour regulations
Amsterdam 10.64 2.08 4.49 5.16Barcelona 53.40 5.72 8.27 4.07Belfast 8.14 2.63 1.52 8.04Cardiff 8.05 2.91 1.94 8.04Cork 5.48 4.22 0.85 7.32Dublin 13.16 4.00 5.05 7.32Manchester 27.67 3.53 2.38 8.04Scottish Central Belt 27.46 2.92 17.49 8.04
In terms of the individual quality criteria within Labour Availability and Quality, the locations with the highest scores are:
Overall size of labour market: Manchester and Barcelona Tightness and competition for labour: Barcelona and Cork Experienced industry-specific staff: the Scottish Central Belt and Barcelona Flexibility of labour regulations: Manchester and the Scottish Central Belt
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
The quality competitiveness breakdown for Presence of an Industrial Cluster for the Customer support centre profile is shown below
The locations with the highest overall scores for Presence of an Industrial Cluster are the Scottish Central Belt and Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
Location Size of industry Track record
Amsterdam 45.15 0.80
Barcelona 27.27 31.53
Belfast 12.88 19.68
Cardiff 14.44 13.34
Cork 2.90 9.38
Dublin 11.63 29.63
Manchester 21.14 10.23
Scottish Central Belt 40.59 29.40
In terms of the individual quality criteria within Presence of an Industrial Cluster, the locations with the highest scores are:
Size of industry: the Scottish Central Belt and Amsterdam Track record: Barcelona and Dublin
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
The quality competitiveness breakdown for Infrastructure and Accessibility for the Customer support centre profile is shown below
The locations with the highest overall scores for Infrastructure and Accessibility are Amsterdam and Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
LocationAccess to major
overseas marketsQuality of utilities
Quality of ICT infrastructure
Amsterdam 14.55 5.69 7.12
Barcelona 8.86 5.88 3.21
Belfast 2.42 4.13 3.65
Cardiff 4.13 4.13 2.12
Cork 4.20 3.95 2.85
Dublin 7.31 3.95 3.12
Manchester 7.62 4.13 3.75
Scottish Central Belt 4.93 4.13 2.68
In terms of the individual quality criteria within Infrastructure and Accessibility, the locations with the highest scores are:
Access to major overseas markets: Amsterdam and Barcelona Quality of utilities: Amsterdam and Barcelona Quality of ICT infrastructure: Amsterdam and Manchester
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
The quality competitiveness breakdown for Living Environment for the Customer support centre profile is shown below
The locations with the highest overall scores for Living Environment are the Scottish Central Belt and Barcelona
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
LocationCost of living
Attractiveness for international staff
Amsterdam 2.17 2.78
Barcelona 2.11 3.55
Belfast 2.67 1.96
Cardiff 2.66 2.01
Cork 2.53 2.17
Dublin 2.39 2.67
Manchester 2.69 2.40
Scottish Central Belt 2.78 2.46
In terms of the individual quality criteria within Living Environment, the locations with the highest scores are:
Cost of living: the Scottish Central Belt and Manchester Attractiveness for international staff: Barcelona and Amsterdam
Source: fDi Intelligence, from the Financial Times Ltd
To realise the potential,please contact:
Scottish Development International150 Broomielaw, Atlantic Quay Glasgow G2 8LU Scotland, UK T +44 141 228 2828F +44 141 228 2089www.sdi.co.uk
Worldwide offices in: Americas, Europe, Middle East, Africa and Asia Pacific