Trends Report

Stop Assessing Geographies And Suppliers Separately

Clients Should Use Forrester's Vendor Viability Index To Optimize The Alternative Geography Supplier Selection Process

April 29th, 2013
CG
Charles Green
With contributors:
Christine Ferrusi Ross , Fraser Tibbetts , Lutz Peichert

Summary

As more companies expand their use of global delivery models, assessing the risk of potential countries and cities is crucial. Traditional approaches to location analysis have typically comprised assessing the geopolitical and business environment, the strength of human capital, the depth and maturity of the local IT landscape, and the legislative and IP situation. Only after assessing the location do clients then consider suppliers in that geography. However, this approach is not sophisticated enough to deal with an increasingly complex environment and causes too many gaps between location risk and supplier risk. This report builds on the principles of Forrester's Vendor Viability Index, originally outlined in the "Find Out How Risky Your Suppliers Are: Introducing The Vendor Viability Index" Forrester report, to ensure that clients get a clearer picture of true risk by including both a location risk and supplier risk assessment rather than executing the two assessments separately.

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