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
Your Offshore Staff
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
Your Offshore Staff
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
Remote Managed Office
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.
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.
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!