Beyond labor arbitrage: Five questions redefining location strategy
How to rethink where work gets done as AI, talent, risk, and evolving delivery models reshape the location decision.
Where work gets done is becoming a more consequential business decision. Once treated primarily as a cost consideration, leadership’s calculus now must factor in talent access, operational resilience, service delivery design, regulatory complexity, and the growing role of AI. That shift is changing how leaders think about outsourcing, global business services (GBS), and global capability centers (GCCs). It is also changing what work belongs in each model, where organizations need deeper capabilities, and how quickly location strategies need to evolve as business conditions change.
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Five questions driving location decisions
Learn more about the expanding decision matrix that is reshaping how organizations think about work, talent, delivery models, and location strategy.
Download the paperWhy does location strategy need a new approach?
The traditional offshore playbook is broken. Cost still matters, but it no longer tells the full story. Leaders now have to weigh talent, productivity, resilience, and the ability of a location to support more specialized work.
At the same time, the go-to delivery models themselves are changing. As more work moves beyond back-office processing into analytical, middle-office, and specialized functions, organizations need a more deliberate mix of GBS, GCCs, outsourcing partners, and automation. AI is accelerating that shift by changing what work should move, what should stay, and what can now be redesigned or eliminated altogether.
The result is a more complex location decision—and a greater need for leaders to rethink where work belongs, what capabilities matter most, and how to build a model that can keep creating value as business needs change.
Three macro forces reshaping the location decision
Leaders need locations that can support stronger productivity, deeper skills, and future capability needs—not just lower-cost labor.
Geopolitical disruption, cyber readiness, regulatory exposure, and business continuity now play a more central role in evaluating locations and delivery models.
AI, hybrid delivery, and more specialized work are changing what moves, where it goes, and how delivery models need to evolve.
What are the five questions leaders need to ask?
Modern location strategy requires leaders to make more deliberate decisions about work, talent, delivery models, risk, and long-term value. That starts with five key questions:
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What factors are driving location decisions?
Cost remains foundational, but leaders now also have to weigh talent, productivity, resilience, speed, and risk.
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How do you align work, models, and capabilities?
Different types of work belong in different delivery models, requiring a more deliberate mix of GBS, GCCs, outsourcing partners, and automation.
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How is AI redefining the location equation?
AI is changing what work moves out, what stays, and what new capabilities locations need to support.
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How is the location map changing?
Established hubs still matter, but new markets and tier-2 cities are expanding the field of options.
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What does a successful location strategy look like?
Leading organizations are measuring success through agility, capability, resilience, and business value over time.
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Go deeper on the location decision
Download the paper for a closer look at all five questions—and the tradeoffs, capabilities, and strategic choices reshaping where work gets done.
Download the paperWhat do leaders need to get right now?
Leading organizations today understand that a location strategy is no longer a one-time footprint decision. Leaders need to better understand where work belongs, which capabilities matter most, and how delivery models should evolve as business needs change. The organizations that get this right can make better tradeoffs across talent, resilience, speed, and long-term value—and build a footprint that is easier to adapt over time.
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How KPMG helps organizations reimagine location strategy
Location strategy now requires broader criteria, more disciplined tradeoffs, and regular reassessment. Organizations need to evaluate where work sits, who is doing it, what can be automated or redesigned, and how delivery models should evolve as business needs change.
KPMG helps organizations assess those decisions across strategy, operating model design, capability planning, and execution—bringing together advisory experience across GBS, GCCs, outsourcing, AI, talent, risk, and tax considerations. The goal is to help leaders build a location strategy that is more intentional, more resilient, and better aligned to the business. Our services include:
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Location strategy assessment
Assess location strategy across GBS, GCCs, and outsourcing models, with a clearer view of how talent, cost, resilience, and operating requirements vary across options.
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Delivery model design
Design delivery models across captive, outsourced, and hybrid environments—aligning work, control, flexibility, and capability needs more deliberately.
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AI and automation
Evaluate how AI and automation are changing what work moves, what stays, and what capabilities locations need to support.
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Location evaluation and site selection
Evaluate candidate locations through a broader lens that includes talent, cost, risk, resilience, and the full tax and incentive landscape.
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Capability and maturity roadmap
Assess delivery-model maturity and define a roadmap for building capabilities over time as work becomes more specialized and business needs evolve.
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GBS and global delivery modernization
Plan and execute the modernization of GBS and global delivery footprints, including the operating model choices needed to support future growth and enterprise value.
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Meet our team
The KPMG GBS and Outsourcing Advisory team helps you reimagine your business delivery model for the modern era. We provide a holistic, AI-powered framework to deliver measurable outcomes and build a future-ready enterprise. Work with us to transform your support services into a strategic asset that drives growth and value.
