TABLE 2.2: FSSC LOCATION CRITERIA
Cost benefits • Wage scales and incentives, local government and company allowances, fringe
benefits.
• Tax and duty requirements, tax holidays and incentive schemes, requirements for
taxation status.
• Government grants and assistance.
• Relocation or training grants for new employees.
• Closure costs of existing sites, etc.
Local Environment • Political climate, stability or lack of it.
• Regulatory and compliance issues on general company data and/or personal data.
• The ability to exchange data within and outside the country, time zones among
clients.
• Roads, infrastructure, telecommunications, utilities.
• Specific cultural issues, cultural norms, practices, language.
Tax/Treasury/Legal • Access to banking system.
• Government regulation on information passing in/out of countries; consider:
regulations regarding data processing, paper invoicing, record retention and edifact
rules.
• Exchange control in/out of the country, requirements on location of the company’s
books, confidentiality rules.
Human Resource • Total skill pool and skills levels,
• Language skills
• International accounting knowledge within the multi-entity, multi-currency
environment
In identifying and selecting an appropriate location, many firms will engage consultants to
offer advice on the different potential sites. While this is a useful starting point there is no
substitute for ‘gut feeling’ and an extensive, well-planned two/three day visit by the CFO,
project leader and others to the short-listed sites.