Build – Operate – Transfer
Build – Operate – Transfer
For larger companies with the ultimate goal of having complete ownership of their offshore operation, yet wish to minimise the costs and risks associated in setting up a captive operation, then the Build – Operate – Transfer model is a strong option. RemoteResources will set up a dedicated offshore team and office, much like the hybrid captive model, however it will be strategically set up with an ability to transfer its ownership and full operational capabilities to the client at a pre-determined time or stage in the operation. Whilst leveraging from the existing capabilities and resources we have built up over the years, this is by far the best way to ensure a fast and efficient time-to-market.
During the Build and Operate phase, the staff are initially employed, supported and supervised by RemoteResources, ensuring all systems and processes are optimised. However, their employment along with all the associated assets will transition over to the client’s entity once incorporated. Post transfer, RemoteResources will be available to continue with all support services and assistance on an as-required basis, ensuring clients will always have a strong local partner supporting their offshore operation.
A Build – Operate – Transfer engagement model also gives access to a vast network of available, qualified, specialised, and experienced staff around the world that would not normally be available locally. Considerable cost savings will be achieved by businesses when compared to hiring in their local labour market. A Build – Operate – Transfer model is ideal for those companies who have the need for ownership of their offshore operation. RemoteResources will be a collaborative partner during the whole process and beyond. The diagram below illustrates the structure and services we will provide during each phase:
Offshoring through a Build-Operate-Transfer arrangement
Your Offshore Staff
Perfect for emerging companies
Due to its pre-determined intent to become a wholly owned and operated entity, the Build – Operate – Transfer model is intended for emerging companies and corporations. It is an effective method to establish an offshore operation without the usual scale of risks and undertakings such as due diligence, acquisition and the high associated costs.
Your business costs are dramatically reduced, risks are lower and your access to qualified and experienced staff remains an on-going value. We will do what we do best and put all in place your staff, management, premises, equipment, tools, systems, and processes. This allows you to concentrate on what you do best – your core business and the maximizing your operating profits.
During the Build and Operate phase, our Operations Management Group will assist you in having complete operational control of the offshore operation. With all of the performance metrics, KPI’s, reporting requirements, scheduling, and the like set up and driven with the assistance of RemoteResources, optimisation on every aspect is assured. Our goal is to ensure all systems and processes are performing to the highest level before we handover the ownership during the Transfer phase.
Due to the intent to transfer the operation, our recommendation is for you to embed your own training and management resources as soon after initial setup as possible, or even as early as interview and hiring stage. This will help to ensure a seamless transition to the new corporation during and after the Transfer stage.
Post transfer, we will be available for whatever tasks and functions you wish. It may be logical that we continue to offer all support services, ensuring you will always have a strong partner supporting your offshore entity.
A Build – Operate – Transfer arrangement with RemoteResources will have the following value propositions:
- Risk mitigation:
Business risks are significantly reduced with an offshore operation under our offshore Build – Operate – Transfer model when compared with opening your own captive offshore operation. Major set-up investments as well as long-term commitments are considerably lower. In addition, you will be utilising the experience and expertise of a local Vietnamese offshore-specialist firm to carry out the majority of the time consuming and normally expensive elements of the operation.
- An organised and controlled transition:
The transition from the Operate to the Transfer phase can be accomplished over the course of many months. During this time, your management team can gradually take over control of the operation from RemoteResources. This controlled transition will be much more simple and phased when compared to direct incorporation.
- Experienced local expertise:
RemoteResources and our team have been operating in Vietnam for a considerable amount of time. We know how to operate here. During the Build and Operate phase of our BOT arrangement, you will gain much information and understanding from us and then use that knowledge to perform an efficient and effective transfer.
- Post-transfer assistance and services:
Per your needs and requirements, RemoteResources can provide you with assistance and services even after the transfer of all operations to your own company.
Our Build-Operate-Transfer services fit somewhat outside of our usual pricing model, due to its complexity. Some of the expenses are customized per the scope of works with our client. However we will use the pricing model of our hybrid captive as a basis and incorporate the additional supplementary expenses. A supplementary cost example is the costs expended in the process of incorporating a local Vietnamese company for the business.
The majority of costs will be expressed as a fixed fee per employee per month 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, through to the Transfer stage.
During the Transfer phase, we will be transferring talent and assets to your own local corporate entity. The mechanism of this transfer will have been set and agreed in the Services Agreement we signed at the commencement of the engagement.
Our aim is to simplify the price and billing process – and especially to have all expenses identified and agreed at the outset, so no surprises for you. Naturally, any necessary amendments will have an impact on both the Services Agreement and expenses.
Below are some of the items covered within the pricing of a Build – Operate – Transfer model:
Direct Employee Costs:
The Direct Employee Costs are determined by the client and are openly shared for ensuring transparency. The total figure can be broken down per employee into Base Salary, Insurances and Benefits.
The Infrastructure Costs are the costs associated with providing clients the assets, infrastructure and equipment needed for their offshore office. These costs generally consist of: Office Space; Furniture; Hardware; Software; Connectivity; Peripherals & Tools.
Our Post-Transition services will be at your disposal:
The Service Fee is what makes up the services and support that RemoteResources can provide to clients on an on-going basis. These fees are made up of: Operations Management; Recruitment; Human Resources Management; IT Consultancy; Technical Support; Finance & Accounting; and Legal.
* The total monthly cost is the combination of the above. This is generally around a 80% saving when compared to the client’s local equivalent in their home country.
We’d love to help you by answering any questions or assisting you to better understand how a Build – Operate – Transfer offshore process and operation can help your business. Simply complete the boxes below and we’ll get connected!