Control + Capacity + Innovation + Productivity

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Competitive Advantage

Offshoring retains 100% control over your Business Strategy, IP, Data, Brand, Reputation, Credit, Liability and Cash. Third party Outsourcing solutions do not.

We created our first offshore office in 1995, and while limited in function, it achieved over 80% cost reductions. Since then offshored offices have developed into fully integrated Global Capacity Centers (GCC), owned, operated and managed as semi-autonomous subsidiaries, and in many cases are more successful than the parent company.

Productivity Gains + IP Protection + Innovation

Located in low-cost locations with surplus talent, GCC subsidiaries scale capacity, expand capability, typically improve productivity 2 to 5 times depending on function, gain access new technologies and processes, drive innovation and can sharply reduce risk. Strategic decisions must balance the future benefits of IP and innovation against immediate high labor costs. GCC typically provide management the ability to hire several key technical staff, and then retain them long term for sharply lower costs than short term contracts in Canada.

New Market Expansion / Exports

The strategic GCC office allows fast expansion into new local or regional markets, usually not available from the home country, that has often led to dominating their markets.

De-Risking:

Business continuity is ensured by balancing the regular business cycles in each market, via contingency resource availability and production/service capacity in case of climate or political constraints.

Persistent Teams:

Persistent teams, where the same people are engaged long term in a firm are key to innovation, and development and maintenance of IP, and provides a low cost guarantee the firm has the surge capacity to adapt to rapid changes in the demand. Learning curves are often months faster with persistent teams, that can dramatically reduce start up / ramp up costs and time.

Offshore, Global Value Chains & Global Capacity Centers Since 1993

XPM has been developing scalable GVC and Offshoring solutions to international clients for over 30 years, and creating High Performance Teams within GCC since 2000.

We assist clients to quickly recruit experienced, multilingual talent, sharply reduce operating costs, and optimize their organizations to obtain maximum benefit.

Engineering, IT, coding, AI programming, full stack etc, Project / Program Management, PMO Back Office, Contract and Operations Management, legacy data capture, language translations, technical writing, turn-key startups, and design-build-transfer are a few of the areas we have worked in.

Reduce labor and support costs by 50 to 80% without sacrificing quality. Acquiring 2 to 5 staff for the cost of one in the home market, is an immediate and compelling productivity boost.

Offshoring allows you to select, implement and manage security protocols, and maintain exclusive access to your staff, office, data links and support infrastructure.

Your international office can provide preferential, facilitated access to develop new markets of up to 1 billion consumers that are not readily available from Canada, and offers affordable and agile response to rapidly changing opportunities.

Offshoring is affordable for even small teams. While the focus on cost arbitrage and savings are important drivers, most SME quickly pivot to focusing on gaining competitive advantage through creating value by being able to expand staff skills and offer customized / localized services.

Persistent Teams are built around affordable talent, the knowledge they develop, their experience and capacity to work in their local / regional market are your most important asset. Persistent teams introduce new products, services, and processes, and can be crucial to adapting your products / services both for new markets, and expanding value at home.

GLOBAL CAPACITY CENTER

TWO OPTIONS

GCC + GVC: Client Owned and Managed

A 100% owned subsidiary is registered in the new country that will employ the staff, and own and control 100% of the IP, data, information and manage the branding and any contracts. IP, Trademarks etc would be registered in that country providing immediate and direct control and enforcement.

It is expected that the client will use this office as a springboard to expand into the local market, and extend into any countries covered under Regional Free Trade Agreements. The client is responsible for all admin, HR, local compliance etc.

GCC Hybrid: Client Owned and Operated – Admin & Local Compliance Managed by XPM

As above, a division is registered in the new market and any IP and Trademarks registered.

It is expected this office will be limited to GCC, and generally be restricted to provided offshored services to the home office, and not become involved directly into exporting into the new market, for the time being. Should it be decided to later become active in GVC (ie exports and doing local business) then it would be converted to a GCC + GVC and the client will assume full operations.

If operating exclusively as a GCC, then to reduce the level of effort and allow the client to focus on running their core business, two changes are made:

  • The operation of business occurs within a secure area restricted to authorized personal only.
  • The day to day admin and local compliance, would be outsourced to XPM whereby XPM would not have access to, or knowledge of, what occurs within the secure area.

BENEFITS of GCC + GVC

SME & STARTUPS WHO NEED AFFORDABLE ENGINEERING, IT, PROGRAMMING, TECHNICAL, PMO etc

Offshoring will be particularly attractive for specialized IT and engineering staff, PMO, Programmers / Coders, Network Security and / or back off and support functions when cost reductions can provide a competitive advantage.

You should talk to us if you want to:

  • Save $100’s thousands to millions in operating costs
  • Scale your business fast, while ensuring IP and data are locked down
  • Recruit low cost, high quality talent in weeks not months
  • Develop a pipeline of talent that is affordable to maintain during slow periods
  • Obtain facilitated, expedited entry into new international markets

RELATIVE COST

Typical comparisons are we can establish and start operations for about:

  • The same cost as attending a couple of international trade shows with booth.
  • 1/2 to 1/3 the cost of a intermediate / senior engineers annual salary.

Note: cost comparisons are based on the results of actual projects, and assume clients:

  • Are fully prepared with comprehensive, accurate Business Case / Plan
  • Organizational capacity,
  • Competence in management,
  • Resources sufficient to support the initiative.

XPM & Team can assist clients to develop any shortfall in capacity or competence or Business Plan as an additional service.

PEOPLE ARE YOUR GREATEST ASSET

Sourcing and then integrating motivated, innovative, multilingual staff with broad industry experience and contacts that often extend to a dozen countries can provide you with an immediate and compelling competitive advantage.

ADAPTABILITY / AGILITY

What your business does is often secondary to how fast you can adapt to the market. Captive Offshoring teams can provide real time adaptation to rapidly changing markets, reducing risk and helping ensure you have the right product / service to meet current demand.

EXPORT MARKET DEVELOPMENT

Since 1991, the vast majority of exports are sold and delivered through Global Value Chains via Foreign Affiliates. Since 2000 these have expanded to include GCC that provide low cost, facilitated international sales, multilingual customer support, and access regional Free Trade Agreements that provide preferential access to markets not available from Canada.

YOUR BUSINESS. OUR COMMITMENT.

Captive Offshoring: Is It Right for You ?

Despite the many advantages, Offshoring, GVC or GCC are not right for everyone.

These core solutions to how world trade is conducted is recommended for only firms with well established businesses, solid cash flow, experienced management with strong cross cultural understanding, who welcome change, are fast to integrated into their organizations, and committed to dedicating all the necessary resources.

Exporting your product / service is challenging enough; exporting part of your business while in many ways simpler, much lower cost and risk, requires an entirely different skill set in management.

Schedule a conversation with one of our consultants to determine an appropriate path forward.

TALK TO ONE OF OUR CONSULTANTS AND EXPLORE HOW WE CAN HELP YOU CREATE VALUE