This is the plan for next year… if you are in a HCC, you should be afraid…
a. Rebalance our skills to deliver solutions globally at a profitable margin
Currently 68% of Expert Labs headcount sits in High Cost Countries (HCC). In order to achieve our GP margin expansion target for 2023, we will begin to transition some of the headcount from HCC to Low Cost Countries (LCC) in a responsible manner over the next 3 years to minimize disruption to the business.
Expert Labs will adopt a consistent approach worldwide to execute on this strategy. We will leverage the natural headcount attrition (assumed 3% quarterly) to progressively shift backfills from HCCs to LCCs at 2x conversion (25% in 2023 and increasing thereafter). The headcount to be transferred to LCCs will be split between ISA and regional LCCs which could act as near-shore centers (e.g., within NAFTA, LA and ASEAN). This will enable Expert Labs to increase capacity while staying within the cost budget