1. How Is Your Business Model Different Than Outsourcing ?
Primarily, there are following ways to get your work done in an offsite (ie India in this case).
“Outsourcing” means that you ask an Indian company (“Vendor”) to do part of your work in India and be responsible for all deliveries as specified by your company..
“Offshoring” means that you establish your own company (a subsidiary) in India. All deliveries are done by your own hired staff of CEO, CTO, CFO, HR head and other staff. This company in India is also responsible for all regulatory compliance and liabilities.
“Office Space Hiring” means that you hire office space (one “seat” per employee) for your staff. You pay this infrastructure Vendor on a per “seat” basis. However, all staff is on your rolls and Vendor has no role in the operations of your deliveries or staff. You have to manage it remotely from your Head Office.
Our business model is none of the above. Since we do no delivery or job work for our clients, we do not quote any rate/hour or per person. We also do not quote on a per “seat” basis since we are providing many functions of CTO,CFO and HR for your staff here. We also provide custom hardware, software and network equipment as per your specs. We even provide technical Project Manager till you build up your team here and can afford your own. If you now read our home page once again, you would understand as to how we are offering a unique business model. This is a genuine Business Partnership and not a Client-Vendor relationship.
2. How Do You Make Money In This Model ?
We do make money otherwise we would not be in business. However, since it s a transparency based model, sometimes we make very little – almost on the margin of break even. Our motive is to establish such a level of trust with our Partners so that they never have to shift from us. This way, because of never having to suffer a cycle of “bench” eating our profits, we continue to be assured of regular business for a long term. As our Partners start believing in our transparency and integrity, the business is on auto mode since we get to have “permanent” Partners. Trust, transparency and integrity is the bedrock of this business model. The driving motive of our business is not high profitability, exponential growth or a burning ambition. “Yogic” pace of growth is more likely to describe our approach to business.
3. Is This Model Suitable For Our Business ?
This business model has been specifically designed for Small & Medium Businesses (SMBs). Global corporates can always open their own offices in India. There are two criterion to decide whether it will be suitable for your business or not.
- The nature of your business has to be such that you can get work done from a staff which is based in India through the use of technology like Cloud based data sharing, Video conferencing, emails, teleconferencing and internet based collaborative Tools & Softwares. Imagine if your another office was in another city of your own country. This is no different than that.
- If you wish that this staff in India should interact with your customers also then Interaction of this staff in India with your clients should be through technological access and not physical presence at client site. That is, the tasks that can be done remotely. Your business could be in any industry viz Digital Marketing, Software Development, Video & Film Animation, Legal Services, Financial Services, R&D, Product Development, BPO/Call Center, HR & Payroll Processing or Healthcare records etc etc.
4. What Are The Risks ?
It is apparent that if you are a small company and have never tried this offsite model, you will be apprehensive since you may not know any company in India personally and nor have the knowledge of lndian laws, culture and regulatory environment. That is why we said that this model is ideal for small and medium companies since their risk taking capacity is less. Given below are the ways how your risk is mitigated.
- Since you do not own any office here and have no employees on your rolls, you have zero financial and regulatory liabilities. Walk away tomorrow and you will not hear from any Indian tax or compliance agency. The only thing you need to do is to honour your commitment to give us a notice of 60 days before exiting.
- You can start with a team of just two persons here. As you develop the trust, you can start adding more people to your team. Since the notice period is 60 days, you are looking at a risk between USD 8,000 to 15,000 in total for a two month period for two persons.(Of course this amount depends on what level of persons you have hired to do your work but this is a ball park range.) If you can not afford to risk even this amount then you should not look at placing your manpower offsite. If this is of any comfort to you, not a SINGLE client of ours has dropped out after starting out with us. So attractive are the returns, quality of service, the working environment and the Partner relationship.