Traditionally, there are only two basic offshore outsourcing in the Philippines that you can choose from. You either start your own subsidiary company in the offshore location to maintain full control, or you contract a third-party service provider to handle complete operations from end to end.
At Booth and Partners, you can get the best from these two traditional offshore solutions through a third outsourcing model – OFFSHORE INCUBATION.
In offshore incubation, the two traditional models are combined so companies can focus on scaling their organization while maintaining full control. It’s by far the quickest, cheapest, and least risky way to start your offshore operations.
During the infancy stage of your offshore office in the Philippines, you’re operating under the umbrella of a local company. During this time, you don’t have to worry about the country’s legal and corporate system nor do you have to invest heavily in equipment, utilities, offshore staffing, and other overhead costs.
All you need to do is focus on learning about the most efficient way you can manage your offshore office and grow your business.
Offshore incubation is normally used by companies that want to get their offshore operations off the ground quickly, but will eventually incorporate locally. As such, the offshore office looks and feels like your main headquarters but is fully maintained by your outsourcing partner in the Philippines.
Because you’re not shackled with unfamiliar legalities and business regulations, your time-to-market is quicker, your costs are much lower, and the associated risks are reduced and transferred to the third-party service provider in the Philippines.
Once you’ve learned the ins and outs of managing your offshore operations and you’re sure that you can stand on your own two feet, full ownership is transferred to your own Philippine-based corporation.
Low Risk – Partnering up with a third-party outsourcing provider in the Philippines allows you to mitigate legal risks involved with starting a corporation in a foreign land with unfamiliar laws and regulations. And because there’s no long-term investment, you can easily exit if the operations don’t meet your expectations.
Low Cost – Setting up your offshore office requires a large amount of capital. Consider the initial costs of consultancy fees, office space and equipment, recruitment and hiring, and more. Additionally, the offshore incubation model is less costly because a large portion of the performance accountability is maintained by the client.
Quicker Time to Market – It will take you at least 6 to 9 months to launch your offshore operations, from the time you decide to incorporate your business in the Philippines to the moment you finally hire qualified employees and have an office space to boast of. At Booth and Partners, we already have the offshore staffing, space, equipment, infrastructure, and processes that will allow you to launch your operations within just a few weeks.
Offshore incubation pricing varies by scope and complexity. As such, some pricing models may apply. However, these are the factors to consider when considering the total fees for your offshore incubation.
Direct Employee Costs – You have full budgeting control over personnel costs including base salaries, taxes, and employee benefits and perks.
Infrastructure Costs – These charges include office space, IT infrastructure, tools, workstation hardware and software, telecommunications, and other required facilities.
Service Fees – Instead of paying for separate consultancy fees, Booth and Partners bills a single service fee that includes management and support services such as IT and technical support, hiring and recruitment, finance and accounting, legal services, facilities management, security provisions, and more.