Hi there,

First of all, congratulations on reviewing your cases so thoroughly!

This is indeed an interesting question which is probably relevant for quite a lot of users, so I am happy to provide my perspective on it:

• I would advise you to consider that “benefit of colocation” as a 10% revenue increase of that specific office in case IT will be placed in the same country.
• Moreover, since the business size of Australia is $800m, I would advise you to consider this business size as the baseline to calculate your “benefit of colocation”. 
• Lastly, I would advise you to think about that even if your choice is to put 100% of your IT sources in Australia, that does not mean that 100% will come from Australia either (i.e. you will still gain $200m from Indonesian business).

In case you want a more detailed discussion on how to best approach quantitative questions during case interviews, please feel free to contact me directly.

I hope this helps,

Hagen

Well, it appears Luca knows my case well :P

He's exactly right. Customers don't change when we move support functions. 

Especially in today's world, location of operations/business doesn't “matter” to top-line revenues. Here, we're purely focused on better serving the business from whichever location is optimal!

COuldn´t have said it any better than Luca!