The Netherlands vs. "low cost" locations

It's the total cost of doing business you're really after.

It's well-known that companies must look beyond mere numbers to ascertain real costs and determine overall business success. Yet sometimes companies neglect the big picture in an attempt to become more competitive and impact their bottom line. Qualitative factors that contribute to profit and growth are often eschewed in the hard light of numbers alone.

The Netherlands offers companies who want to start or consolidate an SSC a combination of efficiencies integral to profit, growth and long-term success. Both qualitative and quantitative strengths distinguish the Netherlands from Eastern or Southern European locations that, on their face, may appear more economical choices.

Efficiencies such as a highly developed infrastructure, an educated and productive workforce, a pro-business government, superior business climate and an international culture play roles co-equal with raw cost in determining success.

Low rates on real estate or wages lose their ability to profit a company in undeveloped or isolated economies. If space is not centrally situated, or is located in a country with an unstable government, it generally isn't worth the rent - no matter how low. Or if employees aren't fluent in the languages of Europe, they can't conduct European business. In all, lower initial costs in Eastern and Southern Europe that seem tempting at first may not garner a company the prestige, proximity or profit critical to European success.

Results from a 2004 study conducted by Atos Consulting(1) comparing business features critical to success in the Netherlands and Eastern and Southern Europe have been presented below. We think you'll agree the data clearly demonstrates the Netherlands is the right place to locate or consolidate your SSC.

Physical Infrastructure

Air and Road Network

The road, rail and air infrastructure in the Netherlands is dense and of good quality. Modern, efficient means of transportation are a basic building block of business success, and businesses in the Netherlands will find themselves within short distances of their European customers.

Technological Infrastructure

The Netherlands communication infrastructure is a frontrunner in Europe for overall value, quality and specialized IT services. In today's economy, advanced telecom, web and data transmission systems are vital communication links. Few European nations can boast the level of technological sophistication or innovation found in the Netherlands.

Workforce

Skills

Compared to Eastern and Southern Europe, Dutch employees rank first in meeting the needs of a competitive economy. Language skills, productivity, motivation and flexibility make them among the best employees in Europe for business.

Productivity

Workers in the Netherlands are 23% more productive than in other European nations. Companies with SSCs in the Netherlands have clearly recognized their value, and state unequivocally that their goals could not have been met anywhere else.

Government and the Economy

Business Climate

The business climate in the Netherlands is extremely favorable. SSCs will find themselves supported by the Dutch Government's tax laws, fiscal policy and international attitude.

Stable Environment

Political stability makes the Netherlands an excellent place to locate an SSC. Laws and policies in place encourage entrepreneurial activity. The Netherlands is known throughout the world as a solid, trustworthy business partner.

Economics

The service sector accounts for 72% of the Netherlands' GDP. The Dutch workforce is skilled at helping businesses succeed, and is trained in the competitive skills today's companies demand.

Culture

Overall quality of life in the Netherlands is high. Accommodations, entertainment, education, culture and availability of goods and services are top-notch. You'll find it easy and pleasant to live here.

(1) Source: "Financial Shared Services in the Netherlands: A report on attractiveness of the Dutch (F)SSC market." 2004, Atos Consulting.