What Is a Service Delivery Location?

A service delivery location is the country, city, facility or remote environment from which contracted work is performed.

A service delivery location is the country, city, facility or remote environment from which contracted work is performed. It affects talent, cost, time-zone coverage, data access and operational risk.

Which location models are used?

  • Onshore delivery
  • Nearshore delivery
  • Offshore delivery
  • Client site
  • Provider facility
  • Remote or distributed delivery

How should a location be selected?

Assess skills, language, labor market, infrastructure, security, regulatory requirements, political risk, travel and business continuity. Compare total operating value, not wages alone.

Why does location matter for data?

Data residency, cross-border transfer, customer contracts and regulated access may limit where work can occur. Remote work can create additional locations not visible in the facility address.

Can a provider change the location?

The agreement should state whether prior notice or approval is required, especially when the change affects security, law, tax, resilience or service levels.

What should be recorded?

Maintain approved sites, functions, subcontractors, data access, staffing and continuity arrangements. Audit actual delivery against the approved model.

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