Build-Operate-Transfer - MicroSourcing


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.
Your Company
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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. Alternatively, you can start from scratch and start procuring your own office space and assets once your own corporate entity has been established. The talent transfer is quite an undertaking and requires a good collaborative effort by the MicroSourcing HR department and your HR people. This is done to properly communicate the intention to transfer and get the buy-in from all employees in your offshore operation to switch their employment to your new subsidiary. The actual transition date can be a festive occasion with the MicroSourcing management team and your team in attendance to celebrate the birth of your new Philippines-based corporation.

After the transfer has been completed, you may opt to still use any of our services and or 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.