BILISIS
Perspectives
3 May 2025·Operations Council
operationsstrategy

The geography of operational advantage

There is a persistent assumption in technology circles that geography has been abolished. Remote work, cloud infrastructure, asynchronous communication — the argument goes that it no longer matters where you are. Work happens everywhere, instantaneously.

This is mostly true for some things. It is importantly false for others. The organisations that have treated geography as irrelevant have, in aggregate, made themselves less capable in specific, predictable ways.

What location actually determines

Geography does not determine much about where code runs. It determines quite a lot about the following:

Talent access and retention. The skills required for serious technical work are not uniformly distributed. Some specialisations cluster geographically — around universities, around industries, around other specialists. Pretending otherwise means competing for talent in the same pool as everyone else who has also decided geography doesn't matter.

Regulatory context. Technology that operates across jurisdictions operates under multiple regulatory frameworks simultaneously. Understanding those frameworks — not as compliance overhead but as operational terrain — requires presence. Presence means staff who understand local regulatory culture, relationships with the relevant bodies, and the ability to participate in the development of regulations rather than merely react to them.

Timezone coverage. Systems that require 24-hour operational awareness cannot rely on asynchronous communication for issues that require real-time judgement. Distributed operational presence across timezones — not nominal coverage, but genuine competence in each location — is a different capability from centralised coverage that happens to have some night-shift staff.

Client proximity. Some relationships require physical presence, not because the work requires it, but because trust requires it. The organisations that have concluded otherwise have often done so in contexts where trust was already established through prior physical proximity.

Three locations, three purposes

There is a reason why technology organisations operating at serious scale tend to converge on a small number of geographic configurations. The configurations are determined by the combination of capabilities each location provides, and how those capabilities compose.

A position in the southwest of England provides proximity to a particular cluster of engineering and research talent, as well as access to a financial and professional services infrastructure that has accumulated over centuries. It is not a glamorous location, and it is not supposed to be. It is a working location.

The Baltic states, and Tallinn in particular, represent one of the most interesting experiments in digital governance in the world. The combination of highly educated technical talent, a government that has genuinely committed to digital-first infrastructure, and EU regulatory membership creates a specific and valuable set of operational options that are available in few other places.

Singapore is a different kind of bet. It is a bet on Asia-Pacific as the dominant theatre of economic activity over the next several decades, and on Singapore's continued willingness to serve as a neutral, well-governed bridge between that theatre and the rest of the world. The bet has been correct for a long time. There is no particular reason to expect it to stop being correct.

Distributed presence as strategic choice

The organisations that do this well do not have satellite offices. They have distinct operational nodes, each with genuine capability, that coordinate rather than report.

The distinction matters. A satellite office is an extension of a headquarters — it executes decisions made elsewhere and escalates decisions it cannot make. A genuine operational node has local authority within its domain and contributes to global decisions with local knowledge. The organisational design required to produce the latter is substantially different from what produces the former.

The cost of genuine distributed presence is real. Maintaining coherent culture, shared standards, and effective coordination across multiple locations requires investment that is invisible on any single project but essential to operational health over time. The organisations that underinvest in this coordination — that treat distributed presence as a cost to be minimised rather than a capability to be developed — typically find that their "international operations" are in practice a headquarters with several expensive satellite offices.

The return on genuine distributed presence is also real, and it compounds. Local knowledge is not something that can be hired into existence. It accumulates through relationships, through regulatory engagement, through the slow process of becoming a known and trusted presence in a given context.

We established our current footprint over a period of years, and the value of what was established in year one is greater now than it was then. That is the nature of institutional knowledge: it does not depreciate.

← Back to Perspectives