Wednesday, March 26, 2014

Economic Interactions and Flows

http://greenfieldgeography.wikispaces.com/Information+flows

Global Services Location Index (GSLI)


at-kearney-global-services-location-index-2011_650.jpg


 This index was established in 2004, the GSLI analyses and ranks the top 50 countries worldwide as the best destinations for providing outsourcing activities, including IT services and support, contact centers and back-office support. Each country’s score is composed of a weighted combination of relative scores on 43 measurements, which are grouped into three categories: financial attractiveness, people skills and availability, and business environment."

This article is most interesting to me, because I never heard about the existence of index which scores the global services on different countries. Also, I was surprised that the top 10 countries which have high scores are mostly developing countries. I can understand that many people of these countries are available for work since they have large population. But still, the conversion of business environment to numbers is extremely amazing.

Question: How does the financial attractiveness and business environment is converted to number? What is the base of analysis?

3 comments:

  1. Harry, your font and background make my eyes go crazy. Can you please modify it??

    I think I understand your question but I'd like to clarify it first in English so you know what I'm saying. I think your question is asking:

    "How can you convert financial attractiveness and business environment into numbers for the sake of an index?"

    An even more poignant question could also be:

    "What factors should be counted in the index?"

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  2. I agree. I wonder how financial attractiveness and business environment are converted into a quantitative value? Perhaps a survey is used; 1 - a set number? Also, maybe the reason why the highest scoring countries are developing countries because the developed countries scoring the highest are experiencing a large amount of economic growth. Hence, there are increasing amounts of opportunities for businesses.

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  3. I agree with your question as I also wonder how they have come up with the numbers in the table. Armand's suggestion seems to be a good explanation for the numbers similar to how we conducted the field study for the IA where we had a survey on the resorts. I also wonder what those 43 factors are and how they are grouped into those three categories. The top countries are developing countries because they score high on financial attractiveness probably due to low wages as well as people skills and availability due to large labor forces while even developed countries like the US and the UK still rank in the top 20 because they score high on business environment.

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