Joint Ventures

For many companies, outsourcing to a third party provider may not be the best solution. There can be a number of reasons for this:

• Your company may be dealing with very sensitive data or highly sensitive processes that require a great deal of operational control and quality assurance. In this case, it may simply be too risky to outsource to a third party. Your clients may furthermore not allow you to subcontract or outsource their work to a third party.
• Your company may need your offshore component to be in your ownership. This can especially be the case for companies that are working towards an IPO or an M&A event and are looking to maximize their company value. Naturally, there is more book value in owning an offshore operation as opposed to only having a services agreement with a services provider.

Our Virtual Captive service delivery model helps a great deal in solving problem #1 by enabling our clients to customize their offshore operation and enabling them to clearly set the modus operandi and control day-to-day operations. To solve problem #2, our client will actually need to own a corporate entity in the Philippines so that they can have their own employees and own assets and resources. They can of course do this by establishing their own wholly owned subsidiary or captive, but doing so requires a great deal of due diligence and large, long-term investments.

A joint venture with MicroSourcing is the perfect way to effectively address the challenges described above. The basic premises are quite simple: your company and MicroSourcing will start a joint venture in the Philippines which effectively creates a corporate entity in the Philippines that services your company exclusively and is largely in your ownership. Within the joint venture, your company can leverage all the local resources and expertise that MicroSourcing has built up to start operations swiftly and effectively and without any of the growing pains captives typically face. Naturally, joint ventures are pretty complicated deal structures and your company should have decided that they want to operate in the Philippines indefinitely. Should your company first want to test the waters then you can still use our Project Outsourcing, Staff Leasing or virtual captive services first before you make a long-term commitment in a joint venture.