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 from 0 to 4, while skills availability and business environment are scored from 0 to 3.

The A.T. Kearney measures are useful to a firm that is considering outsourcing its finance function and 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, cost leadership-focused 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

Using Excel, filter out any countries with a business environment score less than 1.5 or a skills availability score less than 1.0. Then compute a weighted average of the remaining countries using the following weights: 50% for financial attractiveness, 30% for skills availability, and 20% for business environment. Finally, rank the countries from highest to lowest using this weighted average measure.

1. Which country has the highest rank?

a. Malalysia

b. China

c. Thailand

d. Mexico

2. Describe some other possible strategies for ranking the countries. Explain why those strategies could be helplful.

3. What are some of the strategic and global issues to consider in outsourcing the finance function?

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Financlal Skills Business Attractiveness Avallabllity Environment 2.34 1.59 Brazil 2.07 Bulgarla 2.99 0.94 1.66 Chile 2.58 1.26 1.88 China 2.28 2.71 1.51 Colombla 2.48 1.38 1.46 Costa Rica 2.70 0.90 1.72 Egypt 3.20 1.29 0.96 Indla 3.22 2.55 1.19 3.23 1.54 1.22 Indonesla Latvla 2.70 0.99 1.64 Malaysla 2.75 1.42 1.89 Mexico 2.71 1.56 1.61 1.43 Philippines 3.17 1.29 Poland 2.41 1.37 1.90 Romanla 1.16 1.80 2.79 1.64 1.34 Russla 2.23 Sri Lanka 3.37 1.03 1.14 Thalland 1.44 3.04 1.44 United States 0.52 2.88 2.11 Vletnam 3.19 1.25 1.22