Spain ‘not attractive to foreign companies’
15 April 2004
MADRID – Spain is one of the least attractive countries for foreign companies who want to set up “offshore” bases, according to a report published Thursday.
Spain was ranked 22 out of 25 countries surveyed by the consultancy AT Kearney.
It said the country lacked support for foreign companies who wanted to set up call centres, administration offices or research and development centres.
But the report added that Spain could improve the situation if it would bring “high-level” investments like computer or technological-based companies.
Spain was compared with India, which was number one in the report’s ranking.
Not only was it attractive to foreign firms because of its low personnel costs, but also for the high level of training and language skills that its workforce could offer.
The report said Spain has to decide which area of business it could concentrate on to attract foreign companies.
It pointed to the case of Ireland, which in recent years had transformed itself from one of the least-developed European Union countries to the biggest centres for computers, electronics and research and development.
The second most attractive country for “offshoring” was China, according to the report, where more than 130 research and development centres had opened in recent years.
Like India, low labour costs and a high level of training proved highly attractive to foreign firms.
The report concluded: “De-localisation is an unstoppable process because all companies want to reduce their spending to improve their results as they are under pressure from their shareholders.”
[Copyright EFE with Expatica]
Subject: Spanish news