Cases

Evaluating City Attractiveness and Short Listing Cities for Setting-up Knowledge Process Outsourcing Operations in India, for one of the Largest Pharmaceutical Companies in the World

Challenge

A multinational pharmaceutical company was contemplating setting up a knowledge process outsourcing (KPO) in a city in India. However it required answers to the following questions

  • What canvass of cities should be considered for evaluation?
  • How should one take a decision on where to set-up a KPO?
  • What parameters need to be considered for evaluation?

Our Approach 

UC delivered the answers to the three questions on the cities to be considered, the process of taking a decision and the parameters to be considered, after following the procedures below:

  • Defined the canvass of cities to be considered (A total of 21 cities, encompassing tier 1, tier 2 and tier 3)
  • Eliminated cities based on religious sensitivity, unionism, occurrence of terrorist attacks/ industrial tragedies 
  • Defined primary and secondary parameters and assigned weights to the parameters to evaluate the selected cities (e.g.) -
    • Talent availability and costs (fresh and experienced talent pool, salary index)
    • Quality and attractiveness of life (number of hospitals, malls, 5 star hotels, multiplexes)
    • Infrastructure (water and power availability)
    • Ease and cost of doing business (speed of projects implemented, government policies)
    • Real estate costs
    • Hotspots (salary inflation, demand-supply gap in talent)
  • Collated fact packs on the above parameters through primary and desk research
  • Short listed four cities to conduct detailed campus site evaluation.

Impact

A structured fact based approach to shortlist the cities and to further conduct a detailed campus site evaluation.