Globalization has brought to a level of market interconnection never seen before and, beyond the centrifugal and centripetal forces that cyclically occur, this process is destined even further, and perhaps to lead, although in the long run, to a complete integration of the markets.
Differences will remain due to the different evolutionary stage of local economies, cultural diversities, economic policies (and many other variables), both at a country, regional, international and continental level. Differences that will allow the smarter companies to lead the localization / delocalization of the operations capabilities in a proactive and productive manner.
The term ‘relocate’ has multiple meanings, not just limited to moving production to another country. For example, it could mean moving these capabilities between two third countries, or relocating to the country of origin. Whatever the case might be, it is essential to carefully evaluate, through the right expertise, what to do, how and why, and finally how to ground the decision taken. Method, systems, risk assessment, long-term vision are all fundamental elements, necessary although not sufficient. It is mandatory not to improvise and not to rush decisions, while maintaining high flexibility and speed of action.
Area Consulting starts working on business relocation experiences in the mid-2000s, when the economic and socio-political conditions had actually raised the attractivity of Eastern European countries. This scenario has now largely changed, but thanks to this and following experiences, we have created, tested and consolidated our methodology to successfully support offshoring.