Is this the end of the golden era?

Economic risk has transformed corporate investment strategies.

In the past decades, organisations transformed their operation into a globally integrated enterprise, which locates its operations and functions anywhere in the world, based on the right cost, the right skills and the right business environment. This transformation was possible because the political changes allowed countries to open their markets and global trade agreements. Freedom of movement of workforce, goods, services became relatively easy. This model went very well until the pandemic touched it’s Achilles heel.

The global supply chain is broken. Countries closed their borders, people, not allowed to travel. The flow is stopped.

IBM IBV’s recent Global Location Trends Report analysed this topic, the location strategy in a post-COVID-19 world:

So, what’s going on now? Is this the beginning of the end of this business model? Definitely not. But the priorities are changed. Resilence, business continuity and flexibility became top priorities.

Shorten supply chains, trusted, carefully selected suppliers can provide stability and flexibility. IT is not just a tool anymore but a core asset. The role of IT operations and support has become a key priority. Protecting data, providing uninterrupted operation of the back-office systems and managing employees’ day-to-day technical issues quickly and efficiently are crucial factors of productive and efficient working.

Working with subcontractors is an efficient solution for flexible and secure operation. A good, reliable partner can accommodate their client’s changes, whether down or upsizing. Companies need flexible and supportive partners. This model gives them a competitive technology advantage and helps them through difficult times.

For more information, how I can support you to find your next supplier or new investment destination, please contact me.

CEE Sourcing is an international consulting firm and IT service provider with a strong footprint in Central- and Eastern Europe (CEE).

We have qualified partners across the region and offices in Germany.