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Build-Operate-Transfer

Our Offshore Staff Leasing and Virtual Captive services enable you to leverage MicroSourcing's existing capabilities and resources to set up an offshore operation in the Philippines. Both delivery models are a highly effective way of starting operations offshore without the due diligence, costs, and long-term commitments required to start your own Philippines-based corporation. Your end goal might still be to one day fully own and control the entire offshore operation. In those cases, MicroSourcing can offer a Build-Operate-Transfer (BOT) arrangement in which we will run through two main phases: MicroSourcing will build and operate your offshore operation for a certain period of time, after which we can transfer the entire operation to your own Philippines-based corporation. The diagram below illustrates the structure and services we will provide during each phase:

Offshore Incubation through a Build-Operate-Transfer agreement

MicroSourcing Services
Your Company
Operations Management
Operations Management
Your Offshore Staff
MicroSourcing Assets
Your Support Services
Your Philippines-based Organization and Support Departments

Operations Management
Your Offshore Staff
Your Offshore Assets
Assets owned by your Philippines-based Corporation

Post-transition Assets & Services
MicroSourcing services and assets you opt to still utilize after the transition has been completed.
MicroSourcing
Your Company
Joint
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Pre- and Post-transfer Services

During the build and operate phase, our services will be the same as those given in our Virtual Captive model. This basically means that your offshore operation will run fully within MicroSourcing and we will provide all assets, resources, and support services while you retain complete freedom to decide on operational control. The transfer moment is something that needs to be carefully planned months ahead of the desired transition date. You will need to establish your corporate entity in the Philippines and work out the legal framework in which your parent company and offshore subsidiary will operate. We can help you out with this process and work together with your legal council and accounting firm to get the entity and all the necessary licenses and permits in place. If you wish to take over the existing assets of the offshore operation then we can draft a separate sale and purchase agreement that outlines the terms of such an asset transfer.

After the transfer has been completed, you may opt to still use any of our services and assets. This will give your fresh new subsidiary the time to build up their own capabilities over a longer period of time without impacting operations. Good examples of post-transfer services are recruitment and technical support. You may also decide to lease some of our assets, enabling you to stretch out your capital expenditures over a longer a period of time.

MicroSourcing has incubated some highly successful captives using the build-operate-transfer virtual captive framework. In our opinion, there is simply no better way of making a soft landing in the Philippines and testing the waters before fully committing to having your own Philippines-based corporation.

Advantages

Risk Mitigation

By starting your offshore operation through our offshoring services, you are significantly lowering your risk when compared to immediately setting up your own Philippines-based corporation since you will not be making any investments or long-term commitments. Should your operation in the Philippines fail then you will be able to exit without major losses and sunk costs.

Controlled Transition

The transition phase can be executed in the course of many months during which your management team gradually takes over control of the operation from MicroSourcing. This controlled transition will be a lot easier to execute when compared to direct incorporation, in which case your management team in the Philippines must be able to perform straight away.

Local Expertise

MicroSourcing has been operating in the Philippines and we know how to effectively operate here. During the Build and Operate phase of our BOT arrangement, you can learn from us and use that knowledge to perform an effective transfer.

Post-transfer Services

MicroSourcing can provide you with services even after the transfer of all operations to your own company. Many of our BOT clients, for instance, still opt to use MicroSourcing for advisory and consultancy, business continuity, manpower acquisition, and technical support. It enables them to execute the transition more gradually and focus on the core production processes of the offshore operation first before looking at the overhead and support processes.

Pricing

Our Build-Operate-Transfer services do not necessarily come with their own pricing model. For the Build and Operate parts of the engagement, we will use the pricing models of either our Offshore Staff Leasing or our Virtual Captive service delivery models. Typically, these prices are based on a fixed fee per employee computed using that employee's direct salary costs and a services fee that covers the costs of infrastructure, tools, support, and management. These costs are billed through a monthly cycle for the duration of the engagement.

During the Transfer phase, we will be transferring talent and assets to your own local corporate entity. The mechanism of this transfer is typically captured in the services agreement we sign at the beginning of the engagement and the actual details are worked out in a separate sales and purchase agreement which we draft and sign prior to the transfer. All these details will depend on the nature of your offshore operation and the resources that are part of this operation.