The consulting firm A. T. Kearney analyzes and ranks the top offshore outsourcing locations for companies seeking

Question:

The consulting firm A. T. Kearney analyzes and ranks the top offshore outsourcing locations for companies seeking to outsource the finance function. Kearney provides three measures of the attractiveness of the country as a location for outsourcing: financial attractiveness (low cost), skills availability, and business environment (that supports investment in the country). For each measure, a larger score is a better score; financial attractiveness is scored in the range from 0 to 4, while skills availability and business environment are scored from 0 to 3. Twenty countries selected from the top of the 2007 Kearny list are shown below, together with the measures for the year 2007. The A.T. Kearney measures are useful to a firm that is considering outsourcing its finance function and is also considering outsourcing this function to a foreign country. A firm that considers the finance function as a cost center may wish to find a location where the work can be done reliably at the lowest possible cost. Note that outsourcing would not be considered if for any reason the finance function is considered strategically critical to the company; in that case the finance function would be retained close to top management. For example, a company with a stable and cost leadership type of operation would be more likely to offshore the finance function than a company that operates in a dynamic competitive environment where financial skills are needed for many day-to-day decisions.

Required
1. Using Excel, analyze the above measures for these 20 countries and develop a ranking of the countries for choosing the best country for the location for offshoring the finance function. Explain briefly how you developed your ranking.
2. What are some of the strategic and global issues to consider in outsourcing the financefunction?