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VIRTUAL SUBSIDIARY MODEL

Description: This model enables you to have your own outsourcing organization, a real subsidiary in India, even for as little as 25 persons, such that your control would be 100%, and with a sensible plan and approach to ensure that the costs are kept sufficiently low to keep this an attractive measure. Here, you own all the people, so you pay actual costs, and there is a management fee of 40% for the management of the subsidiary, with a local CEO from our side to represent your Board and take decisions on your behalf, and with shared services (accounting, sourcing, IT infrastructure etc) so that the overheads are kept low. This is worthwhile if you need to have your own organisation in India, rather than just a service provided to you.

It will be your real subsidiary, owned entirely by you, managed on a day-to-day basis by us. Directors and CEO will be established by your Chartered Accounting firm to ensure diligence and fair integral practices, audited by the preferred partner of your Chartered Accounting firm in India.

We will packetize your work, set up the infrastructure for you, recruit people for you and manage them for you – They will do the work for you. The packets of work are easily transferred back and forth, using proven technology & work methodology that is best of breed, today. You choose the people, you choose the way they should work, you have complete control. Those people will be “your” employees in India, to do whatever you choose to do – back-office accounting work, sales proposal building, calling customers, managed operations for your own customers, an IT shop, software development, a call center, et al. We put in place, these processes, procedures etc that you wish your subsidiary to follow and ensure that they are followed diligently. We set up the infrastructure as per your requirement.

You pay for actual and real costs – actual salary of the people, infrastructure etc, diligently and fairly provided, transparently done on a monthly basis + a 40% management fee.

Methodology: We will sign a contract with you, where you specify the “work” that is intended to get done, the number of staff, the qualifications & skills of the staff. Your accounting firm will establish an Indian, 100% owned subsidiary of your organisation, where you would define the Directors of your choice, and whose CEO would be our CEO, appointed at your behest. Your subsidiary, under our guidance, will then locate, pre-select the right candidates for you. You will make the final choices. We will appoint the persons, and ensure that they understand the core values of your company.

The “work”, in the meantime, is getting defined. If you have documented practices, processes, then this will be fairly easy. If you have reasonably clear processes, undocumented fully (like most companies in the world), We will send in a team for a short period to help you to make these “reproducible” and reusable at a small change.

The “work” is now “implemented” using world-class technologies, such that it is electronic in nature, transportable via the Internet. Each item of work is ‘track-able”, managed, reported on, can be re-assigned at whim. Your team in India is also receiving training to ensure that they are up to speed by the time the technology is implemented. Thus, within a short span of time – 2 to 12 weeks, depending on the complexity of the tasks and work assignments – your Indian offshore team is ready to go to work!

Responsibility: While you have complete control of your subsidiary, we manage and drive it as per your instruction with complete responsibility, accountability.

Value Proposition: You pay everything that we set up for you, on actuals with a upper ceiling set by you + 40% as management fee. Below table illustrates typical value proposition per annum for setting up and maintaining your subsidiary of 50 persons in India including the management fee.

 

 



 
 
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