If you’re set to course through outsourcing some of your business core processes off-shore and presently deciding between acquiring the services of a contract outsourcing provider or building your own captive operations facility, you might want to consider the lay of the land before you make that business leap.

Both the business and real estate industry share a prime Rule of Thumb: “Location, location, location.”

Location can come cheap or can come costly. Location can make or break a business. Location, and the facilities built on it, can be a financial asset or liability for your company.

In the Outsourcing Opinions article, Outsourcing: Go Captive or Go Native?, we examined the strategic approaches of

1) hiring an outsourcing services provider,

2) operating one’s own captive facilities and the advantages of each approach.

In terms of location, hiring an outsourcing provider with established office facilities has the advantage of reduced costs.

On the other hand, establishing a company branch can incur facilities cost but then again, would not the real estate be considered as a company asset? And there are industrial/IT economic zones in certain urban areas that provide leeway in business policy and local tax exemptions.

Real estate matters could influence your company’s decisions regarding these two strategies.

Recently, major global lenders are putting a hold on credit to many real estate developers and builders, placing stricter loan requirements, particularly on purchasing, leasing and refinancing commercial properties. This is for the grim lesson learned from the US housing mess.

Though the present worldwide blight on commercial real estate is marking down office rent and purchase prices, it is simply because of value depreciation. So far, banks and real estate developers are most affected, but what could this mean for businesses that require office space and facilities?

Could one industry’s suffering mean another industry’s boon? Should businesses take advantage of such fire-sale prices or take heed of these as a omen, leasing and buying properties now has a  curse-some catch , similar to Robert Louis Stevenson’s the Bottle Imp?

Outsourcing Solutions, Inc. – your outsourcing partner!


  1. Matlack, Carol. “The Credit Squeeze Hits Global Properties.” 4 September 2008. Business Week. Accessed 5 September 2008. Link here
  2. “The Bottle Imp.” 4 July 2005. Wikipedia: The Free Encyclopedia. Accessed 5 September 2008. Link here


You must be logged in to post a comment.

Recommended Providers

Recommended Articles

Ask the Expert

Please click here or send an email to with your questions about outsourcing.