Support services

Operation profile

This industry includes business support operations, with a particular focus on those that interact primarily through electronic communication. Typical operations would include inbound call centers (e.g., customer enquiries, IT helpdesks), outbound call centers (e.g., telemarketing, teleresearch), centralized business processing centers, and centralized administrative centers. Support services operations may be subsidiary operations of a parent firm, or may be outsourced to an independent service provider.

The representative operation modeled is a corporate shared services center incorporating centralized accounting, customer call center, and internal IT support functions. As detailed in the following table, this operation is characterized by:

  • Leased office space
  • A workforce consisting mostly of lesser-skilled administrators, such as clerks, teleservice representatives, and helpdesk agents.

The business is assumed to operate as a fully owned subsidiary of a parent firm, with revenue allocated to the business on a "cost-plus-10 percent" basis.
 

Summary of operating parameters

Industry: Support services

Operation: Shared services center

Facilities requirements
Class A office space leased - ft2 (2,090 m2)
22,500

Other initial investment requirements
   Office equipment - US $'000
$3,000
   Equity financing - % of project costs
100%

Workforce
   Management
10
   Sales and administration
88
   Customer support
42
   Other
5
 
Total employees
145

Energy requirements
   Electricity: monthly consumption demand - kWh
60,000

Other annual operating characteristics
   Sales at full production - US $'000
**
   Other operating costs - US $'000
$1,250

** This operation represents a cost center. For taxation purposes, corporate revenue allocated to the operation is assumed to be cost-of-operation, plus 10% markup.

International results

International results are illustrated in the following chart. These results reflect the combined impact of 26 location-sensitive cost components applied to the modeled operation. Detailed results for these countries, by individual cost component, are available as a separate table.

City results

The following table profiles results for selected cities, by country, from among the 111 cities featured in this report. Results for all other cities included in the study can be found in the Results lookup section of this website.

Results for selected cities
Industry: Support services
Operation: Shared services center
North America – lowest cost cities
Country and CityIndex & Rank1
CACharlottetown, PE65.13
 Moncton, NB66.24
 Fredericton, NB66.45
 Halifax, NS68.06
 Quebec City, QC69.87
MXMonterrey, NL37.91
 Mexico City, DF40.92
USSioux Falls, SD80.627
 Boise, ID81.329
 Little Rock, AR81.530
 Youngstown, OH81.631
 Billings, MT81.833
 Fargo, ND82.035
 Shreveport, LA82.136
 Lexington, KY82.537
 Savannah, GA82.738
 Cheyenne, WY82.839
1  Rank among 111 featured cities.
 
 
 
International locations – all cities
Country and CityIndex & Rank1
AUAdelaide76.520
 Brisbane81.328
 Melbourne79.526
 Sydney81.934
FRMarseille81.732
 Paris88.777
GEBerlin85.157
 Frankfurt86.665
ITMilan79.125
 Rome77.222
JPOsaka82.840
 Tokyo83.850
NLAmsterdam78.524
 Rotterdam77.923
UKLondon89.981
 Manchester71.112
1  Rank among 111 featured cities.

 
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