Build Operate Transfer

Offshore Outsourcing means using a middleman or facilitator, like MicroSourcing, to enable you to run an offshore operation. In theory, you could cut the middleman out of the equation by setting up your own corporate entity in the offshore destination of choice. In this way, you could own and directly operate your own offshore operation.

Setting up a Filipino corporation and running it according to the rules and regulations of the Philippines is a pretty complex matter, which is why it is probably better to apply a Build-Operate-Transfer (BOT) model where the initial work is done by a local partner and you gradually take over the operation. In this section, we will have a look at the BOT models we can apply and the services we can offer.

What is Build-Operate-Transfer (BOT)?

As the name suggests, there are three phases in a Build-Operate-Transfer model: Build, Operate and Transfer. The exact implementation of each phase can differ but here at MicroSourcing, it generally means:

Build Using our standard Offshore Staff Leasing model, we will analyze your HR requirements and take care of recruitment and selection. We will allocate the necessary office space, workstations and connectivity and build up your offshore team in close cooperation with you. For more details, read Step-by-Step Outsourcing . Operate This phase will also follow our regular offshore staffing model. Once all assets are in place, your offshore team can go live. We will provide HR support, technical support and operational management. In short: we will do what is necessary to assure a smooth operating offshore team. More details are given in Step 6: Operational Management . Transfer During the Operate phase, Build phase or perhaps even before that, you would have started the incorporation procedure. By the time you got all your business permits, you would have been able to set up your office space, workstations and other infrastructure. Once you are ready to start your own operations, we will simply terminate our offshore staffing agreement and you will be able to take over your offshore team members.

Our BOT Services

Beyond our standard offshore staffing services, we can provide numerous BOT-related services:

• Consulting
  Before you even consider setting up your own Filipino corporate entity, you will need to learn about the local rules and regulations when it comes to foreign ownership, corporate structures, entity types, tax legislation and all other aspects of founding and operating a Filipino company. You could of course contact those big international consultancy, accounting and legal firms and end up spending a lot of money getting advice that any locally operating company could give you. We have experience in creating and operating Filipino corporations and could likely answer a lot of your questions. For the questions we cannot answer, we can surely direct you to local firms that can help you out.
  
  
• Incorporation
  Using our experience and local business network, we could facilitate the incorporation procedure. We could make it absolutely transparent to you and keep you involved and in the know every step of the way.
  
  
• Corporate Management
  The Transfer phase does not necessarily have to mean the end of our business relationship. We could help out with the corporate management of your Filipino entity by taking care of all the bureaucratic hassles such the filing to the various government departments at all levels of government. We could also take care of bookkeeping and accounting, HR management, technical support and many of the other services we provided during the Build and Operate phase. In general, we could keep on operating as we did during our offshore staffing model with the only significant difference that you own the operation and are paying all direct costs. In this model, we would charge a fairly low management fee.
  
  

Drafting BOT Agreements

Most outsourcing providers fear BOT models since it almost certainly means loss of business. Even if the Transfer phase is followed by an agreement whereby the outsourcing provider provides certain management services, it is more than likely that in the end, the client will terminate that agreement and run its operation without any outside help.

At MicroSourcing, we would of course also rather have you as our outsourcing client for all eternity but we do understand the benefits of a BOT model for our clients and we generally think it's better to provide BOT-related services than to avoid it all together. To make sure that the BOT deal is both beneficial to you as our client and MicroSourcing as your provider/facilitator, it is recommended that:

• You openly discuss your BOT plans with us as early as possible. In this way, our initial outsourcing agreement may already contain clauses and references to a possible transfer of personnel.
• You keep us involved in every step of the way. Let us be part of a total BOT strategy in which we help you incorporate and we gradually transfer assets to your corporation during the Transfer phase. A long, smooth transition phase will give you the time to take on more and more responsibilities and it will give us the time to re-allocate our resources.

If your project has a limited scope or duration then the staff leasing solution described before and the Build-Operate-Transfer model described above might not be applicable. In such cases, we can work out a different custom solution. We will discuss this in more detail in the next section about our General Outsourcing Services .