< PreviousB uilding on the success of OCO Global’s fi rst edition market report focused on emerging Global Business Services (GBS) and Shared Services Centers (SSC) locations in Europe, we now want to highlight opportunities in the Americas, home to nearly one-third of the global GBS market. While Latin America has long captured headlines — with Costa Rica, Mexico and Colombia leading as dynamic and evolving hubs — this edition shifts the focus northward to the evolving landscapes of the United States and Canada. A rapidly changing geopolitical environment is prompting a renewed interest in reshoring BUSINESS PROCESS OUTSOURCING 26 SEPTEMBER 2025 SITE SELECTION By special arrangement with OCO Global, a Northern Ireland-based advisory firm specializing in global trade and investment, Site Selection here presents findings from “Next-Gen Locations: North America’s Future GBS/SSC Destinations.” The report was released in June 2025 and co-authored by OCO Global’s Global Head for Site Selection & Location Advisory Loïc Blanc with Manager Site Selection & Location Advisory – U.S. Market Abby Varas. Also presented here are findings from the firm’s previous report on emerging GBS/SSC loca- tions in Europe. — Ed. Emerging A new report from OCO Global fi nds Indianapolis to be the leading emerging North American location for global business services and shared services centers. Photo by Nicholas Klein: Getty Images Services Destinations in the Two reports from OCO Global highlight top locations for global business services and shared services centers. Americas and Europe28 SEPTEMBER 2025 SITE SELECTION and localizing operations to core markets. This trend is gaining momentum in the U.S., where businesses are reassessing the balance between cost and quality. At the same time, the growing adoption of advanced technologies — AI, automation and data analytics — has begun to reduce dependency on multilingual talent and transactional processes. As a result, strategic priorities are evolving from labor arbitrage to innovation, resilience and value creation. In this context, we explore the rise of next generation (Next-Gen) locations across the U.S. and Canada, cities and regions that combine strong talent pipelines, innovation ecosystems, business- friendly environments and a readiness to support the future of GBS and SSC operations. In today’s American SSC/GBS landscape, there is a strong concentration of activity in established hubs, with the U.S. accounting for 35% of respondents operating captive centers in these regions (SSON Report 2025). However, the unstable political environment, particularly since Donald Trump’s second presidency, introduced significant changes such as tariffs on trade, forcing businesses to reconsider their location strategies and become more responsive to the changing landscape to mitigate risks. The search for best-available talent continues to drive multi-location models, complemented by cost savings, greater flexibility (particularly when leveraging suppliers) and enhanced productivity — especially within a “follow the sun” model. Protectionist policies, such as the “America First” initiative, have encouraged companies to focus on onshoring rather than offshoring, particularly discouraging dependency on countries like China and India. The push to keep jobs onshore and ensure work is done within the U.S. further supports this trend. This is paired with a deregulatory approach designed to ease the regulatory burden on businesses, fostering a more favorable environment for growth. At the same time, there is a growing emphasis on technological investments, particularly in artificial intelligence, being applied across most functions as a means to increase pace of innovation, customer service quality, and back-office operation cost. Looking ahead, upcoming federal elections in Canada and rising trade tensions between the U.S. and Canada add additional layers of uncertainty to the regional landscape. Potential policy shifts may affect cross-border operations, tariffs and investment decisions, requiring companies to remain agile and well-informed. In this evolving landscape, it is a strategic moment for companies to review and adjust their location strategies, ensure they are diversified, and closely monitor changes in trade negotiations, policy and regulatory shifts, while also investing in automation and AI to stay competitive in a rapidly changing global environment. “Over the past decade, GBS has expanded significantly, with many companies initially focusing on cost savings by offshoring to lower- cost countries like India, the Philippines, Mexico, and parts of Eastern Europe,” says award-winning GBS executive David Palmieri, who has over 30 years of experience in large-scale transformation at firms such as JPMorgan Chase, Citigroup, BNY Mellon, and Experian. “While this approach created growth, a ‘savings first’ mindset often led to challenges such as high attrition and reduced quality. Going forward, organizations are adopting a more balanced approach — cost remains important, but strategies are increasingly centered around talent, innovation and ecosystem strength.” Asked which factors companies should consider when selecting next-gen locations, Palmieri says, “One of the most critical factors when choosing a 30 SEPTEMBER 2025 SITE SELECTION next-gen GBS location is what I call the ‘sign on the door’ — in other words, what functions will the center perform, what scale of talent is needed, and which teams need to be collocated for collaboration. A GBS center focused on software innovation will look completely different from one supporting contact center operations or finance. “Another key consideration is the operating model,” he says. “You need to think about the overall architecture — whether it’s a landlord model, the level of supplier involvement, contract types, remote versus onsite work, and the need for language skills. You also have to factor in how the location supports your employer brand. AI and robotics are no longer optional — they’re foundational. GBS organizations are now expected to innovate at scale, often through Centers of Excellence (COEs) that develop and deploy smart automation. These capabilities allow GBS to scale up without adding more people, essentially enabling 100% cost arbitrage. That opens the door to greater location flexibility. In some cases, it may even make sense to place parts of the COE in higher- cost markets if the benefits in speed and quality outweigh the cost.” Instead of focusing on well-established hubs, which are often saturated and highly competitive, particularly in terms of talent, our approach targets next-gen locations: less mature markets that demonstrate significant growth potential. To identify those that might be under the radar today but are strategically positioned for long-term success, we scored and ranked cities based on the following drivers: • Less mature markets (smaller population and labor force) • High growth potential (population, labor force and GDP growth) • Depth and maturity of the tech ecosystem (AI, automation, digital adoption) • Future skilled talents (education system, availability of specific skills) We then scored and ranked the locations to highlight overperforming tier-3 locations, both in the U.S. and Canada. Location Decision-Making in a Changing Europe Europe stands out as the world’s most diverse GBS market, boasting nearly 100 potential locations. Central and Eastern Europe has long been at the forefront, with Poland, Hungary and Czechia establishing themselves as key players since the 2000s. The Baltics, along with Romania and Bulgaria, have also matured into well-regarded destinations known for their skilled workforce and competitive costs. However, the region faces significant challenges that are reshaping its GBS landscape. Structurally, there is a growing war for talent, driven by low unemployment rates and increasing salary expectations, which is making historically attractive SSC/GBS locations less appealing. Moreover, since 2022, geopolitical tensions, particularly stemming from the Ukraine conflict, have heightened risk perceptions in these regions. Consequently, Southern Europe has emerged as a compelling alternative, notably Portugal, which offers stability, a favorable business environment, and a growing tech ecosystem. Yet attention is also shifting toward newer locations within Europe. Countries like Spain, Greece, and Italy are increasingly capturing interest due to their strategic locations, skilled workforce and supportive government policies. Moreover, emerging markets such as Macedonia, Georgia, and Albania are gaining recognition for their potential to become future GBS hubs. INVESTMENT PROFILE: COUNTRY OF GEORGIA Rising Trends Converge in Georgia S ome say every site selection begins with a leader’s tourist experience of a place. e same might be said of talent’s perspective in this new era of remote work, digital nomads and round-the- clock operations. A rise in quality-of-life infrastructure is converging with increasing digital economy competence to make a strong business case for Georgia. Let’s begin with arrival. A growing array of airlines now operate in Georgia, serving destinations worldwide. e total of , passenger and cargo fl ights operated in the country during the fi rst seven months of was % higher than the number of fl ights performed in the same period in . e , tons of cargo and mail processed during those same seven months was % higher than the same period in . Passenger volume also was up by %, part of the reason the fi rst half of saw nearly $ billion in tourism revenue fl ow into the country. In the summer season Georgian Airports saw an average of fl ights per week. Among the international airlines now landing and departing in Georgia are four airlines from the United Arab Emirates that currently operate nearly fl ights a week between the UAE and the country of Georgia. In July, another UAE airline, Etihad Airways, said it will add more fl ights to the weekly menu of .-hour UAE-Georgia fl ight options beginning in March . “ is is another success for our country and a result of our sound economic policy, including diversifi cation, and by ADAM BRUNS adam.bruns@siteselection.com SITE SELECTION SEPTEMBER 2025 31 The skyline of Batumi pulses with energy.32 SEPTEMBER 2025 SITE SELECTION recognition of the aviation industry,” said Georgia Minister of Economy and Sustainable Development Mariam Kvrivishvili at the Etihad announcement. “ e entry of such a strong international brand airline into Georgia will further strengthen the country’s recognition and contribute to the further development of the tourism sector.” The Ties That Multiply e fl ight growth pairs well with dramatic growth in the hospitality sector in Georgia, with new hotels opening in and more than slated to open between and , including the forthcoming Wyndham Grand Batumi Gonio all-inclusive hotel and residence development in the Adjara region on the Black Sea near Batumi. But tourism isn’t all that’s on the rise in Georgia. Among other investments, Abu Dhabi Ports Group is the primary backer of expansion at Tbilisi Dry Port, where the $ million fi rst phase of development is now operational. Meanwhile, one of the leading real estate companies in the Emirates, Eagle Hills, aims to bring a $ billion mixed-use investment in for a landing in two locations: a project called Krtsanisi Park on nearly , acres in Ponichala near the nation’s capital of Tbilisi, and another project on more than acres in Gonio, near Batumi. Work is anticipated to begin in both locations in early . Meanwhile, Eagle Hills in August established a new sales offi ce in Tbilisi. “ e Eagle Hills project represents a strategic investment in Georgia’s future,” says Minister Kvrivishvili. “It highlights the country’s growing appeal as a platform for high-impact developments and signals the untapped potential our economy holds. is is not just a real estate venture — it’s a catalyst for broader growth, unlocking new opportunities in tourism, retail, and services, while reinforcing Georgia’s position as a regional hub for international investment.” Mohamed Alabbar, the infl uential chairman of Eagle Hills and founder of Emaar Properties, has overseen more than $ billion in development value in countries, including around the Burj Khalifa and Dubai Mall in Dubai as well as in such places as Albania, Indonesia, Morocco, Croatia, Budapest, Bahrain and Ethiopia. e publication International Investment in March reported that Alabbar was captivated by Tbilisi’s culture and Batumi’s energy and beauty. “He further emphasized Georgia’s economic stability and development, predicting that Eagle Hills’ signifi cant investments will attract other investors,” said the publication, just as they have in other countries. Alabbar is not alone among foreign business leaders with an eye on Georgia. From January through July , exports from the country of Georgia increased by .% to a record of more than US$. billion, as foreign trade turnover grew by .% to set its own record of more than $. billion. ose seven months followed a that saw its own records: .% export growth to reach $. billion and .% trade turnover growth to attain $. billion for the year. Overall incoming FDI of $. billion between and was led most recently by companies from the UK and the Netherlands. Emerging Location for Global Business Services A substantial portion of that global FDI interest is focused on services, specifi cally global business services (aka business process outsourcing or BPO) and information technology services. Service exports in these sectors soared from $ million in to nearly $ million in . A report about up-and-coming European regions for global business services and shared services operations from location consultancy OCO Global noted that Georgia is among a handful of countries “gaining recognition for their potential to become future GBS hubs.” Among the country’s advantages for BPO and IT services: • BPO and IT companies investing at least $, and creating new jobs for BPO or new jobs for IT get an FDI grant equivalent to % cash back on their investment. Moreover, International Company Status for IT companies provides a preferential tax regime that includes a reduced corporate tax rate of %, % personal income tax and % dividends tax, reduced from %, % and % standard rates, respectively. The entry of such a strong international brand airline into Georgia will further strengthen the country’s recognition and contribute to the further development of the tourism sector.” — Georgia Minister of Economy and Sustainable Development Mariam Kvrivishvili, July 2025, on the announcement of new UAE-Georgia fl ights from Etihad Airways The entry of such a strong international brand Modeled after the Technical University of Munich, Kutaisi International University will host 40,000 students at full capacity. SITE SELECTION SEPTEMBER 2025 33 • The country’s strategic location in terms of time zone (GMT +4 hours, or 8 hours ahead of Eastern Time on the U.S. East Coast) facilitates round-the-clock, round-the-world service handoffs. • A multilingual, skilled and competitively priced workforce features some 574,000 speakers of English, German, French or Italian, with many speaking two or three of those languages in addition to Georgian. • High-speed internet and robust network connectivity . In addition to having one of the fastest download speeds in the southern Caucasus region, the country aims to provide broadband internet to every household by this year via its $80 million Log-In Georgia infrastructure investment program. Enterprise Georgia reports that BPO and IT outsourcing employ 46,000 people in Georgia, who help those sectors add $1.67 million in value and whose export of services is valued at more than $2.5 billion. A concerted effort to train 3,000 IT specialists was completed in 2022. A follow-up program aims to upskill 5,000 specialists by 2026. Meanwhile, average monthly salaries are 30% to 40% lower than Central Europe across all professions. A report prepared by Shared Services and Outsourcing Network (SSON) says the country of 3.9 million people and its capital city of Tbilisi (1.2 million) still offer the same global connectivity and cultural integration that being part of the Silk Road trade route did centuries ago, enhanced by receiving EU candidate status in 2023. “Despite the strengths of Georgia, according to SSON R&A’s Shared Services & BPO Atlas, the country only houses 18 delivery centers,” the report found. “However, Georgia is emerging as a previously undiscovered prime center location, with ample opportunity to grow. In recent years, more and more companies, such as TP [Teleperformance] and Concentrix, are discovering the country’s business potential.” In the Global Services Location Index (GSLI), Georgia ranked No. 8 in Europe and No. 24 globally, affirming its growing status as a growing global BPO/ IT destination and reflecting its strong performance across four key dimensions: financial attractiveness, talent availability and skills, business environment and digital readiness. Companies Search for Talent, Talent Searches for Home The talent picture is enhanced, SSON finds, by the country’s liberal visa policy and its “Remotely from Georgia” program to attract digital nomads, which helped raise the number of IT talents working in the country from 4,600 in 2021 to 30,200 in 2023. “One of the key reasons Georgia has become an attractive destination for digital nomads is the simple procedure for long-term stays,” Enterprise Georgia – Invest in Georgia CEO Mikheil Khidureli told SSON. “Citizens from 98 countries can stay in Georgia visa-free for up to one year. Additionally, citizens from 50 countries who hold visas or residence permits can enter Georgia without a visa, under specific terms and conditions. This liberal visa regime has significantly contributed to attracting nomads and remote workers to the country.” But homegrown talent continues to grow as well, nurtured by industry- friendly curricula at such schools as Tbilisi State University, Ilia State University and the recently opened Kutaisi International University (KIU). In all, the country hosts 64 higher education institutions and 66 vocational education and training (VET) centers. Modeled after the Technical University of Munich, KIU will host 40,000 students at full capacity. Among other outreach programs (including AI training), the university in February 2025 signed an MOU with China’s Huawei to become the first higher education institution in Georgia to host the “Huawei ICT Academy,” in line with the university gradually developing into a tech hub. As part of the agreement, students will have the unique opportunity to intern at Huawei, with the potential for future employment. Solid Foundation There’s more than talent to attract Huawei to Georgia. The country was ranked No. 1 for business location, No. 2 in operational efficiency, No. 3 in regulatory framework, No. 3 in labor and No. 6 for favorable tax environment in the 2024 World Bank Business Ready (B-READY) rankings. When scores across all of the index’s pillars were aggregated, Georgia finished at No. 3 among the 50 countries examined, just behind No. 1 Singapore and No. 2 Estonia, and ahead of such competitors as Hungary, Portugal, the Slovak Republic and Bulgaria. A forecast from the International Monetary Fund released in July found that not only did Georgia experience 8.3% economic growth during the first half of 2025, but among the countries of the region and Europe, Georgia will have the highest economic growth between 2025 and 2030, averaging 5.4%. The country saw red-hot 9.4% economic growth in 2024, third highest in the world. “The economic growth indicators are quite diversified at the sectoral level,” said Georgia Deputy Minister of Economy and Sustainable Development Vakhtang Tsintsadze. “Information and communication, manufacturing, education, transport and storage, and financial and insurance sectors contributed significantly to the growth … We expect that the existing positive trends of economic growth will be maintained and strengthened until the end of the year, and Georgia will be able to close 2025 with high economic growth.” Talent development and the quality- of-life amenities designed to attract and retain that talent appear to be the infrastructure of future growth for Georgia. 34 SEPTEMBER 2025 SITE SELECTION This Investment Profile was produced under the auspices of Invest in Georgia, the economic development agency under the Georgia Ministry of Economy and Sustainable Development. For more information, visit www.investingeorgia. org or email Info@enterprise.gov.ge. Tbilisi is home to 1.1 million people with a median age of 38. Photo courtesy of Invest in GeorgiaNext >