Location entry assessment for a software company

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Analysis and identification pertaining to
feasibility of software product development in
top-tier US cities
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Scope of the document ABC Software Ltd. is a
leading enterprise software company based out of
the US. The company is planning to expand its
operations in the US by setting up a new center
which will focus on software product
development.This document focusses on providing
key recommendations based on several parameters
to ABC Software Ltd., that will help the company
in identifying the ideal location for setting up
its new software product development center in
the US.Key recommendations provided to ABC
Software Ltd. are based upon
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New age digital skills that ABC Software Ltd.
should focus upon hiring individuals for
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A brief overview of the key metrics for
identifying the new location
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Framework for analyzing effectiveness of
locations based upon the defined parameters
Parameters Range Weightage Score (1-5)
Total tech talent base 0-400k (in terms of number of individuals) 30 gt300k 5 250k-300k 4 200k-250k 3 150k-200k 2 lt150k 1
Millennial in total population () 0-30 (of total population) 20 gt25 - 5 20-25 - 4 15-20 - 3 10-15 - 2 lt10 - 1
Renting a premises of 300,000 sq. ft. (for a workforce of 2000 people) 5 million - 30 million (annual rent) 25 lt 10 million - 5 10 million - 15 million 4 15 million - 20 million 3 20 million - 25 million 2 gt 25 million - 1
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Framework for analyzing effectiveness of
locations based upon the defined parameters
(contd....)
Parameters Range Weightage Score (1-5)
Corporate tax regime Rankings (1-50) based on 50 states 15 Rank between (1-10) 5 (11-20) 4 (21-30) 3 (31-40) 2 (41-50) 1
Rate of inflation 0-5 (in ) 10 gt1 - 5 1-2 - 4 2-3 - 3 3-4 - 2 gt4 - 1
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Analysis of top-tier US cities based upon the
framework
City Tech Talent Size (Score) Millennial in total population () (Score) Rent cost of 300,000 sq. ft. premises (Score) Rank of state (city) according to corporate taxation policy (score) Rate of inflation (score) Aggregate score (Weighted average individual scores) (out of 5)
San Francisco Bay Area 329,000 (5) 16.1 (3) 18.8 million (3) 31 (2) 4 (2) 3.35
Seattle 145,100 (1) 21.3 (4) 10.24 million (4) 44 (1) 2.4 (3) 2.55
Washington D.C 248,200 (3) 20.2 (4) 11.92 million (4) 27 (3) 1.6 (4) 3.55
New York 254,300 (4) 16.3 (3) 22.48 million (2) 7 (5) 1.6 (4) 3.45
Boston 114,000 (1) 24.1 (4) 11.36 million (4) 37 (2) 2.1 (3) 2.70
Dallas 160,800 (2) 16.4 (3) 8 million (5) 49 (1) 2.7 (3) 2.90
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Detailed analysis of SeattleAlthough Seattle
ranked last in the list of US-top tier cities
based on our framework analysis, but it is highly
recommended to ABC Software Ltd., that it should
set up its new development center there, with the
perspective of strategically achieving a
long-term growth.Seattle is growing as a major
software development center in US, very much in
lines of San Francisco Bay Area. Furthermore, the
city boasts advantages of being much cheaper in
terms of rent costs and other utilities cost as
compared to locations like New York, San
Francisco Bay Area, Washington D.C., and
others.The tech talent size of the city though
not as huge as other giants like San Francisco
Bay Area, New York, and others, has been growing
at a significant rate since Seattle provides
comparatively more salaries to techies than other
cities do, which in turn has encouraged many
techies to migrate from San Francisco Bay Area to
Seattle.Cloud computing, internet of things
(IoT), RPA, and other new age digital skills are
in high demand among the companies operating in
Seattle since the city boasts of the major
presence of two technology giants Microsoft and
Amazon.Seattle metropolitan area is home to one
of the largest population of millennials in the
US, which is an encouraging factor for the growth
of the enterprise software development sector in
the region as majority of the millennials in the
region are focusing upon adopting software
development as their career.
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AppendixLinks and sources usedhttps//statetax
index.org/https//wolfstreet.com/2019/05/10/in-t
hese-us-cities-americans-suffer-hot-inflation-but-
there-are-cool-spots-too/https//mapping.cbre.co
m/maps/Scoring-Tech-Talent-2018/Analyzer/https/
/www.cbre.com/research-and-reports/Scoring-Tech-Ta
lent-in-North-America-2018http//www.ngkfgcs.com
/Blog/September-2017/Top-Ten-Cities-For-Tech-Talen
t.aspxhttps//techbeacon.com/app-dev-testing/can
t-afford-silicon-valley-10-great-us-cities-softwar
e-engineershttps//fred.stlouisfed.org/series/NG
MP42660https//www.geekwire.com/2018/report-aver
age-tech-worker-salary-seattle-hits-132k-making-ci
ty-top-spot-relocation/
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Thanks and Regards