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Wireless Technology Centre 2010A cost/quality comparison
(Based on information from the Financial Times fDi Benchmark tool)
The following analysis is based on fDi Benchmark, an online location benchmarking tool provided by
the Financial Times (FT)
fDi Benchmark compared the Scottish Central Belt with the leading locations globally for a Wireless Technology Centre
based on an analysis of over 55 quality factors and 10 cost factors
A key emphasis was placed on:
Labour availability and quality
Presence of industrial cluster
General business environment
Infrastructure and accessibility
Other factors including the living environment were also assessed
Benchmarking Study
Project Profile Overview
Weighting Model Overview Weight
Labour Availability and Quality 35
Presence of an Industrial Cluster 30
General Business Environment 20
Infrastructure and Accessibility 10
Living Environment 5
Employee Type Profile Head count
Information Technology
Network Analyst 1
Network Engineer 1
Programmer 5
Project Team Leader 1
Senior Designer 1
Senior Manager 1
Senior Programmer 1
Senior System Analyst 1
Software Development Engineer 4
Software Development Manager 1
Software Programmer 10
Systems Analyst 2
Systems Designer 1
fDi Benchmark Matrix
The fDi Benchmark Matrix shows the trade off between cost and quality across the 8 selected locations for the Wireless technology centre (NEW) 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 Wireless technology centre (NEW) 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:
•Beijing offers higher quality at lower cost than the average of all the selected locations
•London, Tokyo offer higher quality but at higher cost
•Boston (MA), Dusseldorf and the Scottish Central Belt offer lower cost, but at lower quality
The Operating Cost value is in GBP – United Kingdom Pound
Location Qualitative ScoreOperating Cost
IndexOperating Cost
Value
Boston (MA) 90.5 104.5 2,339,475
Brussels 79.2 97.1 2,173,479
Dusseldorf 65.2 94.6 2,119,525
London 122.1 110.8 2,482,011
Paris 87.5 100.1 2,242,150Scottish Central Belt 89.2 62.0 1,387,426
Beijing 118.8 87.7 1,963,698
Tokyo 147.6 143.3 3,208,366
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 Wireless technology centre (NEW) 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 Beijing•London and Beijing 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 Wireless technology centre (NEW) is based on the following primary input costs: Labour Cost
The average cost across the selected locations for Wireless technology centre (NEW) is GBP 2,239,515
The greatest cost saving between the selected locations is GBP1,820,942 per annum
The values in the chart below are in GBP - United Kingdom Pound
Source: fDi Intelligence, from the Financial Times Ltd
Cost Competitiveness
9
The locations with the lowest operating costs are the Scottish Central Belt and Boston (MA)
In terms of the individual cost factors, the locations with the lowest costs are:• Labour Cost: the Scottish Central Belt and Beijing• Property: Dusseldorf and Brussels
The values in the table below are in GBP - United Kingdom Pound
Location Labour Cost PropertyBoston (MA) 2,149,366 190,108Brussels 2,004,127 169,350Dusseldorf 1,960,645 158,879London 1,532,650 949,360Paris 1,820,880 421,270Scottish Central Belt 1,139,821 247,603Beijing 1,447,392 516,305Tokyo 2,423,646 784,720
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
The quality competitiveness assessment is based on the weight model for the Wireless technology centre (NEW) 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 Tokyo and London
Source: fDi Intelligence, from the Financial Times Ltd
Quality Competitiveness
In terms of the individual quality factors, the locations with the highest scores are:•General Business Environment: the Scottish Central Belt and London•Labour Availability and Quality: Tokyo and Beijing•Presence of an Industrial Cluster: Tokyo and Beijing•Infrastructure and Accessibility: London and Paris•Living Environment: the Scottish Central Belt and Boston (MA)
LocationGeneral Business
EnvironmentLabour Availability
and QualityPresence of an
Industrial ClusterInfrastructure and
AccessibilityLiving
EnvironmentBoston (MA) 34 21 20 5 10Brussels 23 31 10 5 10Dusseldorf 26 16 8 5 10London 39 44 23 6 10Paris 24 34 15 6 9Scottish Central Belt 37 26 11 4 12Beijing 27 44 32 5 10Tokyo 29 64 41 5 9
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
The quality competitiveness breakdown for General Business Environment for the Wireless technology centre (NEW) profile is shown below
The locations with the highest overall scores for General Business Environment are the Scottish Central Belt and London
Source: fDi Intelligence, from the Financial Times Ltd
General Business Environment
In terms of the individual quality criteria within General Business Environment, the locations with the highest scores are:
Economic growth and stability: Tokyo and London
Operating risk: Beijing and London
Taxation and incentives: the Scottish Central Belt and London
Regulatory environment: Paris and London
LocationEconomic growth and
stability
Operating risk
Taxation and
incentives
Regulatory environme
ntBoston (MA) 1.28 6.58 16.63 9.65Brussels 1.02 3.28 10.24 8.89Dusseldorf 1.19 3.22 13.39 8.49London 1.89 8.79 18.25 9.77Paris 1.30 3.20 9.29 10.07Scottish Central Belt 0.55 8.79 18.25 9.77Beijing 0.65 11.23 8.83 6.61Tokyo 4.13 2.92 13.11 8.73
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
The quality competitiveness breakdown for Labour Availability and Quality for the Wireless technology centre (NEW) profile is shown below
The locations with the highest overall scores for Labour Availability and Quality are Tokyo and Beijing
Source: fDi Intelligence, from the Financial Times Ltd
Labour Availability and Quality
In terms of the individual quality criteria within Labour Availability and Quality, the locations with the highest scores are:
Overall size of labour market: Tokyo and London
Tightness and competition for labour: Brussels and London
Experienced industry-specific staff: Tokyo and Beijing
Flexibility of labour regulations: Boston (MA) and London
LocationOverall size
of labour market
Tightness and
competition for labour
Experienced industry-
specific staff
Flexibility of labour
regulations
Boston (MA) 2.91 10.92 4.21 3.11
Brussels 1.07 25.20 3.03 1.77
Dusseldorf 0.77 12.38 1.79 1.07
London 6.39 14.45 21.08 2.05
Paris 5.63 12.96 14.36 0.93
Scottish Central Belt 1.22 13.49 8.96 2.05
Beijing 6.18 1.89 34.67 1.34
Tokyo 17.82 6.70 37.89 1.68
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 Wireless technology centre (NEW) profile is shown below
The locations with the highest overall scores for Presence of an Industrial Cluster are Tokyo and Beijing
Source: fDi Intelligence, from the Financial Times Ltd
Presence of an Industrial Cluster
In terms of the individual quality criteria within Presence of an Industrial Cluster, the locations with the highest scores are:
Size of industry: Tokyo and London
Track record: Beijing and London
Research and Development Capabilities: Tokyo and Boston (MA)
Proximity to consumers: Boston (MA) and Beijing
Export competitiveness: Beijing and Tokyo
LocationSize of industry
Track record
Research and Development Capabilities
Proximity to consumers
Export competitiveness
Boston (MA) 0.94 1.22 11.51 2.53 3.82Brussels 3.72 0.84 1.30 0.26 3.61Dusseldorf 0.62 1.40 1.49 0.73 3.89London 10.46 6.25 2.05 0.66 4.01Paris 2.93 4.25 3.34 0.57 3.77Scottish Central Belt
2.37 2.20 1.69 0.66 4.01
Beijing 9.10 12.46 4.13 1.58 4.51Tokyo 9.87 3.38 22.49 1.00 4.38
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
The quality competitiveness breakdown for Infrastructure and Accessibility for the Wireless technology centre (NEW) profile is shown below
The locations with the highest overall scores for Infrastructure and Accessibility are London and Paris
Source: fDi Intelligence, from the Financial Times Ltd
Infrastructure and Accessibility
In terms of the individual quality criteria within Infrastructure and Accessibility, the locations with the highest scores are:
Access to major overseas markets: London and Paris
Quality of local infrastructure: Beijing and Boston (MA)
Quality of utilities: Brussels and Dusseldorf
Quality of ICT infrastructure: London and Paris
LocationAccess to major
overseas marketsQuality of local infrastructure
Quality of utilitiesQuality of ICT infrastructure
Boston (MA) 0.86 1.70 1.13 1.10Brussels 1.36 0.84 1.40 1.05Dusseldorf 1.25 1.08 1.45 0.97London 2.34 0.94 1.13 1.49Paris 1.88 1.17 1.21 1.76Scottish Central Belt 0.65 0.94 1.13 0.93Beijing 0.79 2.03 1.23 1.32Tokyo 0.88 1.31 1.33 1.38
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
The quality competitiveness breakdown for Living Environment for the Wireless technology centre (NEW) profile is shown below
The locations with the highest overall scores for Living Environment are the Scottish Central Belt and Boston (MA)
Source: fDi Intelligence, from the Financial Times Ltd
Living Environment
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 Beijing
Attractiveness for international staff: London and Tokyo
LocationCost of living
Attractiveness for international staff
Boston (MA) 7.58 2.82
Brussels 7.56 2.76
Dusseldorf 7.14 2.88
London 5.52 4.53
Paris 5.90 2.95
Scottish Central Belt 9.18 2.38
Beijing 7.76 2.49
Tokyo 5.37 3.18
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