Hybrid Captive



Overview Video

 

Hybrid Captive

 

A hybrid captive combines the strengths of both Staff Leasing and Offshoring. Through this model, the client leverages from RemoteResources in the set up and customisation of their offshore operational office, with risks and costs minimised under the umbrella of a local partner. A hybrid captive model is a separate and dedicated office for the client’s offshore team. It utilises offshore staff who are legally employed and fully supported by RemoteResources. However, the biggest difference is that 100% of the operational control is in the client’s hands. With the operation being located in a dedicated office, this engagement model is for clients who require the need to better streamline their offshore operation and to further customise its management.

 

Our hybrid captive engagement model is geared for Small to Medium Enterprises (“SME”) firms. It is an extremely easy and inexpensive operation to set up – much like our Remote Staffing engagement model, yet probably with a larger team. It is ideal for a business that has a wish to enhance security or enable the operation to be transferred into the client’s ownership through the Build-Operate-Transfer arrangement further down the line. Clients have an ability to set up a whole department or separate function in their hybrid captive, should that be the need. RemoteResources takes control of the majority of the set up and management by incubating the operation within our organization. This enhances the productivity of offshore staff and delivers significant operational control in a non-complicated manner.

 

The hybrid captive allows clients to share in all of the benefits Offshore Staffing has to offer without a lot of the typical difficulties traditional captive offshoring present. Clients will still have access to a vast pool of qualified and experienced staff that would not normally be available locally, at a cost that is significantly lower than what they are used to paying. Importantly, the process is not a complex one for the client. The diagram below explains how your offshore team will be supported by RemoteResources.

 

Your Offshore Operation in Vietnam

RemoteResources Services

Operations Management
The Operations Management Group assists your employees to achieve operational excellence on an exceeding-expectation basis through analysis, engineering, implementation and optimisation of workflow processes. The Operations Management Group will assist you to identify KPIs and metrics whilst driving the overall performance of your offshore team. They also maintain compliance, certification and implementation of best practice.
Recruitment
Our Talent Acquisition team seek out, then attract, screen and hire the very best offshore employees for RemoteResources clients. They are constantly developing their vast talent-team of candidates with the qualifications, experience and ambition essential to be a part of our outstanding team.
Training
Our Training division aims to enable our client offshore employees to reach their full potential. They empower employees with ESL, soft skills, technical and industry specific training. We are also able to facilitate your own training regime. Through the fostering of our team, our strong professional development environment enables us to provide experienced, ambitious and outstanding offshore staff members – all of whom can expect long term personal growth and professional development.
Human Resources Management
Our Human Resources Department takes care of a host of services for the company, such as: remuneration and benefits, company compliance and client specific policies, labour relations, HRMS administration, and human capital strategy. As our greatest asset, we strive to develop our employees and our Human Resources Department ensure all training, support and processes are available to achieve this end.
Finance and Accounting
The Finance Department team will ensure that employee benefits are paid correctly and on time. They also take care of all billings and receipting of funds from clients with accomplished efficiency. Precise internal controls by the Finance Department achieve excellence and mitigation of financial risks.
IT Consultancy
Our IT Support team will assist clients to identify, deploy and manage the very best IT solutions for their offshore team needs. This will include liaising with clients to ensure any special or unique matters are addresses and provided the best solutions. The team is then available to assist with technical support issues, should they arise.
Technical Support
Our Technical Support Department operates 24 hours per day, 7 days per week, and 365 days per year. Our technical support resources include level 1 and 2 technical support engineers, system administrators, and networking specialists.
Premises Management
Our Premises Management function is in charge of locating, engaging, acquiring and managing all premises for RemoteResources and its client's operations. All of our facilities are guarded 24/7 by security guards and we secure our premises using CCTV cameras and network-controlled access devices. We also have a team of janitors and maintenance staff to ensure all our offices are clean and the working environment is of high standard.
Client Assist Services
We recognise the need for highest-quality client service – it is vital for our business and a cornerstone to client satisfaction. To do so, we will provide prompt responses to all client enquiries and communications on a best-effort basis, usually same-day. Furthermore, for visiting clients and prospective clients, we provide an array of concierge services including flight, hotel and tour bookings. Whilst also providing transportation, local guides, golf-outings, and dinner reservations.

Your Company

Operations Management

Operations Management

Your Offshore Staff

RemoteResources Assets

Corporate Entity
RemoteResources has a corporate entity structure that ensures efficient, economical and effective operations for our clients and their offshore employee needs. Client offshore employees are legally employed by us and work in our state-of-the-art offices.
Office Space
Our state-of-the-art offices allow client offshore employees to achieve the best results and work output possible. If necessary, due to client needs, we will arrange for dedicated offices, in a separate location if necessary, to be fitted out exactly to the client specification. Our primary office building is located in one of Vietnam’s new office and residential areas, with an open and peaceful environment.
Office Furniture
We have standardised workstations organised in efficient clusters, allowing for an efficient and pleasant working environment. The furniture is purposely and exclusively manufactured for us and so employees are assured of a quality working area.
Remote Live
Our 'Remote Live Online Management Dashboard and Platform' has been developed in-house with all of the latest communication, collaboration and management technologies integrated within, allowing you to seamlessly connect and interact with your offshore staff. It also allows you to have strong operational control of your offshore staff and operations. Your dashboard is able to be fully customised as per your business requirements, allowing Remote Live to become a powerful tool to streamline your business and workflow processes.
Workstation Hardware
We will provide your offshore staff with all the workstation hardware needed. We are able to fully customise the specifications including multiple monitors, larger LCD screens, upgraded RAM / hard disk space and all other required peripherals or tools. Our standard workstation hardware is PC - however, depending on client requirements, we are also able to provide Mac, Linux or client thin stations.
Workstation Software
The standard package is a Windows 7 environment. Depending on client needs and specifications, we will organise alternative or additional operating systems. Task-specific software can also be coordinated, per client needs.
Networking and Connectivity
We provide high speed redundant internet connectivity to all employees. The system includes comprehensive Internet security measures to ensure data and network protection. We strive to maintain the latest network capabilities.
Servers and Workflow Systems
We provide multiple servers as the backbone to client IT needs. They offer multiple redundancies and are updated as technologies advance. This ensures connectivity remains continuous and so workflow is not interrupted.
Peripherals and Tools
Whatever our client needs, we can coordinate, source and execute the necessary peripherals for their offshore operation. This includes, of course, the typical tools such as printers, scanners, VOIP cameras, headsets, and the like. More complex needs pose no additional problems to solve.


 

 

Optional Ownership

 

It is not unusual for a hybrid captive client to eventually transition to a Build – Operate – Transfer arrangement. This is commonly due to the firm’s further expansion in their offshore team size, with perhaps new operational requirements such as security or industry specific prerequisites. Or, it may be that you have a need to have the offshore operation on your books for accounting or company valuation purposes. Having access to a transitional Build – Operate – Transfer arrangement is a valuable option and gives further flexibility to the offshore staffing initiative. The diagram below explains how your offshore operation will transition into your ownership.

 

Optional Ownership of Your Offshore Operation

RemoteResources Services

Operations Management
The Operations Management Group assists your employees to achieve operational excellence on an exceeding-expectation basis through analysis, engineering, implementation and optimisation of workflow processes. The Operations Management Group will assist you to identify KPIs and metrics whilst driving the overall performance of your offshore team. They also maintain compliance, certification and implementation of best practice.
Recruitment
Our Talent Acquisition team seek out, then attract, screen and hire the very best offshore employees for RemoteResources clients. They are constantly developing their vast talent-team of candidates with the qualifications, experience and ambition essential to be a part of our outstanding team.
Training
Our Training division aims to enable our client offshore employees to reach their full potential. They empower employees with ESL, soft skills, technical and industry specific training. We are also able to facilitate your own training regime. Through the fostering of our team, our strong professional development environment enables us to provide experienced, ambitious and outstanding offshore staff members – all of whom can expect long term personal growth and professional development.
Human Resources Management
Our Human Resources Department takes care of a host of services for the company, such as: remuneration and benefits, company compliance and client specific policies, labour relations, HRMS administration, and human capital strategy. As our greatest asset, we strive to develop our employees and our Human Resources Department ensure all training, support and processes are available to achieve this end.
Finance and Accounting
The Finance Department team will ensure that employee benefits are paid correctly and on time. They also take care of all billings and receipting of funds from clients with accomplished efficiency. Precise internal controls by the Finance Department achieve excellence and mitigation of financial risks.
IT Consultancy
Our IT Support team will assist clients to identify, deploy and manage the very best IT solutions for their offshore team needs. This will include liaising with clients to ensure any special or unique matters are addresses and provided the best solutions. The team is then available to assist with technical support issues, should they arise.
Technical Support
Our Technical Support Department operates 24 hours per day, 7 days per week, and 365 days per year. Our technical support resources include level 1 and 2 technical support engineers, system administrators, and networking specialists.
Premises Management
Our Premises Management function is in charge of locating, engaging, acquiring and managing all premises for RemoteResources and its client's operations. All of our facilities are guarded 24/7 by security guards and we secure our premises using CCTV cameras and network-controlled access devices. We also have a team of janitors and maintenance staff to ensure all our offices are clean and the working environment is of high standard.
Client Assist Services
We recognise the need for highest-quality client service – it is vital for our business and a cornerstone to client satisfaction. To do so, we will provide prompt responses to all client enquiries and communications on a best-effort basis, usually same-day. Furthermore, for visiting clients and prospective clients, we provide an array of concierge services including flight, hotel and tour bookings. Whilst also providing transportation, local guides, golf-outings, and dinner reservations.

Your Company

Operations Management

Operations Management

Your Offshore Staff

RemoteResources Assets

Corporate Entity
RemoteResources has a corporate entity structure that ensures efficient, economical and effective operations for our clients and their offshore employee needs. Client offshore employees are legally employed by us and work in our state-of-the-art offices.
Office Space
Our state-of-the-art offices allow client offshore employees to achieve the best results and work output possible. If necessary, due to client needs, we will arrange for dedicated offices, in a separate location if necessary, to be fitted out exactly to the client specification. Our primary office building is located in one of Vietnam’s new office and residential areas, with an open and peaceful environment.
Office Furniture
We have standardised workstations organised in efficient clusters, allowing for an efficient and pleasant working environment. The furniture is purposely and exclusively manufactured for us and so employees are assured of a quality working area.
Remote Live
Our 'Remote Live Online Management Dashboard and Platform' has been developed in-house with all of the latest communication, collaboration and management technologies integrated within, allowing you to seamlessly connect and interact with your offshore staff. It also allows you to have strong operational control of your offshore staff and operations. Your dashboard is able to be fully customised as per your business requirements, allowing Remote Live to become a powerful tool to streamline your business and workflow processes.
Workstation Hardware
We will provide your offshore staff with all the workstation hardware needed. We are able to fully customise the specifications including multiple monitors, larger LCD screens, upgraded RAM / hard disk space and all other required peripherals or tools. Our standard workstation hardware is PC - however, depending on client requirements, we are also able to provide Mac, Linux or client thin stations.
Workstation Software
The standard package is a Windows 7 environment. Depending on client needs and specifications, we will organise alternative or additional operating systems. Task-specific software can also be coordinated, per client needs.
Networking and Connectivity
We provide high speed redundant internet connectivity to all employees. The system includes comprehensive Internet security measures to ensure data and network protection. We strive to maintain the latest network capabilities.
Servers and Workflow Systems
We provide multiple servers as the backbone to client IT needs. They offer multiple redundancies and are updated as technologies advance. This ensures connectivity remains continuous and so workflow is not interrupted.
Peripherals and Tools
Whatever our client needs, we can coordinate, source and execute the necessary peripherals for their offshore operation. This includes, of course, the typical tools such as printers, scanners, VOIP cameras, headsets, and the like. More complex needs pose no additional problems to solve.

Post-Transfer Ownership

Clients can opt to still utilise Remote Resources Assets & Services post transition.



 

Faster Time to Market

 

Companies who thrive during tough times are the ones that continuously reduce time-to-market. These same companies then see healthy profits when the business cycle improves, yet they continue to implement the steps and technologies necessary to continue reducing time-to-market. The first challenge is to eliminate unnecessary delays and costs. This is done by increasing productivity of both employees and technologies. If improved employee output and efficiency can be achieved at a reduced cost, then firms are working well towards reducing time-to-market and an increase in profitability.

 

An offshore hybrid captive will, when set up and managed correctly, greatly assist in achieving cost savings as well as increases in efficiency and productivity. RemoteResources is an ideal collaborative partner for your offshore hybrid captive. Having a short set-up time, as well as being a relatively simple process for you, since RemoteResources will carry out the set up process, the hybrid captive is a great option for growing businesses.

 

Your office customisation is fully determined by you. At the same time you are able to leverage the expertise, experience and resources of RemoteResources. The result will be a productive team of offshore employees dedicated to carrying out all tasks and processes as set out by you. Set up costs will be far lower than creating a similar office domestically. Thus, the operational risks are lower. Additional details and benefits are shown within the Hybrid Advantage tab.

The benefits of both Captive Offshoring and Staff Leasing.

 

In the past, the only way of setting up a separate stand-alone offshore office or team was for the company to create a wholly-owned subsidiary in the new country. These arrangements are known as Captives, or Captive Offshores.’

 

In order to establish a captive, the company would have the legal, logistical and practical issues of dealing with an unfamiliar country, culture, legal framework and foreign labour issues, in whole or to a large part, by themselves.

 

Despite the time and establishing-difficulties, they promised meaningful advantages for the companies for whom they were/are appropriate – cost, ownership and controls being the major ones. However, due to the costs and complexities, a captive offshore office is generally regarded as appropriate for large firms only.

 

With the onset and growing popularity of offshoring and establishing an office in a lower-cost country, the benefits have become available for virtually all business types and sizes.

 

So it is important to have an understanding of how the business models compare, as well as look at a valid and significant development, a hybrid captive. In the diagram below, we compare two models, Captive Offshoring and Staff Leasing, then introduce a new optimised model: the hybrid captive.

 

 

Captive Offshoring VS Staff Leasing

Captive Offshoring

Long-term Cost Savings
Companies setting up their own captive offshore office must make a substantial commitment. They must be convinced that it will be a complete success in the long-term, prior to hitting the “Commit” button in the process. The longer-term likelihood of success also applies to the expected cost savings. They are unlikely to be realised in the short and medium term, due to the plethora of necessary start-up expenditure. However, a captive offshore office is likely to generate healthy long-term cost savings.
100% Ownership
The Captive Offshore office will be 100% owned by the company, allowing it to be a part of their Asset Register and included in the Assets and Liabilities reporting needs and requirements.
100% Operational Control
Operational control lies with the company in a Captive Offshore operation. They are likely to have at least a small team of parent company supervisors, trainers and managers present at the captive offshore office at least in the early years.
Initial Inefficiencies
Early months (or years) usually see frustrations and teething issues in a new captive office or operation. This is especially so for an offshore office, which is likely to be thousands of miles away from the home base or head office. These issues inevitable lead to inefficiencies and additional associated expenses.
Long-term Commitments & Sunk Costs
A Captive Offshore office requires a long term commitment to give it time to settle down, become an important and accepted division of the firm’s overall structure and contribute to the increased profitability attributable to the new team. Other than for the long term, a captive offshore is certainly not appropriate.
Large Capital Expenditures
A new office, in a new country, hiring employees in a foreign market place can be both daunting and expensive. For this reason, a generous budget is required for a captive offshore office.
Long Setup Process (9 to 12 months)
Companies can expect a long set up process. With all the process going smoothly, the company will probably see a minimum of 9 months – and more likely closer to 12 to compete all the complex process to get the captive offshore office operational.

Staff Leasing

Immediate Cost Savings
As a third party offshore provider takes care of setup costs, including coordinating the hire of your employee team, cost savings are immediate to you. This is especially so with the lower costs of skilled labour and savings in the region of 70% are typically achievable.
Immediate Efficiencies
The offshore third party provider will have established practices, enabling the offshore team a better chance to hit the ground running at start-up.
Minimal Long Term Risks
As the provider takes care of all the myriad of setup functions, then ongoing management, risks are minimised.
Short Setup Process (1 to 2 months)
As a Third Party Offshore provider is doing what they specialise in, a company requiring offshore staff should expect a short set-up time and 1 to 2 months should be achievable.
No Capital Expenditure
The Third Party Offshore provider takes care of the overhead capital expenses that are normally associated with setting up an offshore team. Pricing fees should be known and agreed to in advance. There should be no surprises.
No Ownership
The offshore team is legally employed by the third party offshore provider, so there is no actual ownership of the team by the company.
Reduced Operational Control
Operational control is less than with a Captive Offshore office, as immediate supervision and management is carried out by the offshore provider.
VS

Remote Managed Office

Lower Costs
Setting up a captive offshore subsidiary requires additional investments in terms of due diligence, infrastructure, and consultancy fees. By leveraging the knowledge and resources of RemoteResources, you can establish your dedicated offshore Remote Managed Office without most of these expenses. Additionally, expenses are generally a lot lower than 3rd party outsourcing rates due to operational delivery responsibility and performance risks still residing largely with the client.
Lower Risk
With RemoteResources taking care of all the legal, logistical and practical issues of setting up your new Remote Managed Office, you will certainly leverage from our expertise and experience. Furthermore, as there are no long-term investments, the overall risk of the entire operation is greatly reduced.
Access to Skilled Labour
Vietnam has a huge number of available and highly skilled/experienced workers. A great percentage are graduates from a variety of western colleges and universities, with excellent English skills and high levels of enthusiasm and energy. They are accustomed to carrying out instructions to the letter and are able to work to strict timetables, whenever required.
Optional Ownership
If you have a need to own your offshore operation, then you will be able to transition to this result through the Build-Operate-Transfer arrangement. The ownership may be beneficial for shareholder demands, your asset register, your own customer requirements and a host of other purposes.
Quicker Time to Market
Rather than the usual time that it takes to set up an office internationally (9 to 12 months on average), RemoteResources already has the infrastructure, management, overhead, and processes in place to be up and running in a matter of weeks.
Efficiency
Our systems are all established, tried and tested. We have intimate knowledge of the local Vietnamese labour laws and legal functions and so you will leverage from our local practices and systems. Your new team has office space, processes and resources immediately and they are managed by our Operations Management Department. This all ensures that your new team will literally hit-the-ground-running and be productive in your needs literally from the get-go.
100% Operational Control
Your employees perform their tasks and duties strictly to your instructions and job descriptions. Our Operational Management team will stay close to you, especially in the early days, to coordinate training, performance monitoring and staff development – with an emphasis on facilitating your required level of operational control.
Transparent Pricing
Our transparent pricing formula is very simple, ensuring there is no conflict of interest between RemoteResources and our clients. The total monthly fee is made up of the total of a number of elements, which is made up of: direct employee costs; infrastructure costs and a service fee.
Risk vs Control
A Remote Managed Office offers an ideal balance between risk vs costs vs control. Our clients retain control of their entire offshore operation, but with the assistance and local knowledge of their partner, RemoteResources. Employees, infrastructure and processes are all handled with a minimum of fuss – yet with the efficiency that comes hand-in-hand with our proven systems.


 

 

The sum total of all of these factors will create an important competitive edge that your competitors will find difficult to comprehend. Your costs will be down, output and production will be up, yet there will be no visible cause for them to see or understand. 

Our transparent pricing formula is very simple, ensuring there is no conflict of interest between RemoteResources and our clients. For our hybrid captive engagement model we break down the total costs into several items, as described below:

 

 

Direct Employee Costs:

 

The Direct Employee Costs are determined by the client and are openly shared to ensure transparency. The total figure can be broken down per employee into: Base Salary, Insurances and Benefits.

 

 

Service Fee:

 

The Service Fee is what makes up the services and support RemoteResources will 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.

 

 

Infrastructure Costs:

 

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.

 

 

 

* 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 hybrid captive can benefit your business. Simply complete the boxes below and we’ll get connected!

 

 

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