Captive Offshoring is used by an estimated 65% of firms with international divisions to access talent, reduce costs, facilitate entry to new international markets and develop and maintain competitive advantage.

Once reserved for “big” companies with 1,000’s of employees, “micro-offshoring” with just 10-20 personnel is increasingly used by startups and those seeking to rapidly scale their business, particularly when ramping up to exploit fast moving opportunities, or when expanding into international markets.

Captive Offshoring differs from Outsourcing in that it remains 100% under your direct control, ensures exclusive access to staff and facilities, and maintains security of your IP, data, and corporate knowledge base.

XPM has been providing scalable Outsourcing and Offshoring solutions to international clients since 1993. We establish operations in safe countries with strong Trade Agreements and tax treaties that boast a stable, reliable and affordable business environment.

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

Engineering and other professional consulting, Project / Program Management, PMO Back Office, Contract and Operations Management, recruitment and staffing, 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

You select, implement and manage the 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.

Once reserved for big companies, Captive Offshoring is now 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.

People and the knowledge they bring are your most important asset. Offshore teams introduce experience with new products, services, markets and can be crucial to adapting your products / services for new markets, and expanding value at home.

HOW DOES CAPTIVE OFFSHORING WORK?

ASSESSMENT: Expansion, particularly when involving distributed, cross cultural international teams is by default a change agent. To help manage this change we assess the client organization and operations in context with stated goals, objectives, and future business expectations, identify strengths and weaknesses, determine what additional skills and capacity will be required, and develop a comprehensive proposal dedicated to providing maximum value to the firm.

IMPLEMENTATION : In response to client requirements, we assemble a comprehensive list of candidates to interview. We then hire those selected, lease exclusive office space and improve it to client specifications, and then provide HR and facilities administrative services that comply to local tax and labor regulations, limiting liability and risk to the client.

The client is responsible to manage and direct the work of the personnel, and XPM neither needs or wants to know what work is being done: it is 100% the client’s business and confidentiality is strictly enforced.

OPERATIONS :

  • Staff report directly to the client: we do not get involved in any part of your business, but are available to provide advice as required
  • Client sets objectives, deliverables and establishes the appropriate metrics
  • Client determines what levels of security (ie no cell phones, video monitoring etc)
  • Client determines the level of connectivity (fiber optic, dual ISP feeds, satellite backup etc)
  • Client operate and manages the personnel as part of their team in the way that best fits their requirements
  • No worry about office facilities, utilities, recruitment, HR, payroll taxes, insurance or other administration

OUR FOCUS

SME & STARTUPS WHO NEED AFFORDABLE IT +/- OTHER PROFESSIONAL TALENT

Captive Offshoring will be particularly attractive to companies with established teams who need to acquire specialized IT and engineering staff, and / or when  sharply lower costs are required to provide a competitive advantage.

You should talk to us if you want to:

  • Save a million dollars in annual 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

COST STRUCTURE

FLAT FEE PER FTE STAFF

Our fees are confined to administration, and are not tied to salaries, bonuses, revenue or any other aspect of your business.

  • Cost / FTE + Flat Fee = Invoice
  • Our candidates are university graduates with relevant industry experience
  • We pay above average salaries and offer industry leading benefits
  • Compliant with labour laws and regulations, and assume tax risk
  • You can determine what if any additional bonus, incentives or benefits should be paid
  • Fees start with a minimum number of FTE, and then decrease on a sliding scale with quantity.

SKILLS

IT / ICT & PROJECT CONTROL

The immediately available skills areas include:

  • Blockchain
  • AI
  • Web Developers
  • Systems and Networking Engineers (+/- CISCSO / HUAWEI certifications)
  • Software Engineers: PHP, RUBY/ RAILS, SQL, JAVA, C++ etc
  • Customer Service & Tech Support Engineers: Multilingual
  • .NET Developer
  • Developers: Back End, Front End, Full Stack, Java, Android, IOS
  • Mobile App Developers
  • Project Management Control, Tracking and Reporting
  • Project Management Office – Back Office and Support Roles
  • Data Management (entry, checking, Data Base QA/QC etc)

BENEFITS

SIMPLE TO MANAGE – LOW RISK – FAST RAMP UP

  • Maintain 100% control of your business unlike Outsourcing
  • Cost reduction: average 40% – 60% savings with up to 80% depending on activities
  • Fast, flexible access to critical skill sets in countries that have a surplus.
  • Stable teams – affordability helps maintain teams during slow periods
  • Talent development and testing: allows time to build capacity and develop skills
  • Sandbox –affordably develop, build, create and test in a tightly controlled environment
  • Manages risk and liability on local labour and tax
  • No need to start / own / manage international company = stay focused on your core competencies
  • Access new international markets: sell into the local as well as regional FTA (500m to >1B consumers).

ADDITIONAL BUSINESS SERVICES

FULL SUITE OF SUPPORT SERVICES

In addition to providing offshoring and related administration services, we can also assist SME who wish to enter the local markets to sell their products/ services, find local suppliers, become integrated into local supply chains or expand to regional markets. Service areas include:

  • New Business Development
  • Supply Chain and Global Value Chain Assessment & Integration
  • Export Readiness preparation of head office
  • Organizational Development & Preparation for cross cultural team integration
  • Marketing: for those seeking to use their Offshore office to enter new international markets
  • Market Analysis: Competitor / Competitive assessments, Supply Chain forward / reverse mapping
  • Regional Expansion to adjacent counties or members of FTA
  • Distributor / Agent network development
  • Procurement and Sourcing

RECOMMENDED COUNTRIES

SO WHICH ARE THE BEST COUNTRIES ?

We continuously monitor and assess countries based on their time zone, communications infrastructure, security, competitive environment, taxes and political factors and while Mexico has been a clear leader for the past 15 years, we suggest that Peru currently offers the best overall environment.

Peru scores ahead of Mexico in operating costs, political certainty, personal security, availability of multilingual talent many with advanced degrees from EU universities, progressive Free Trade Agreements providing facilitated access to a wide range of countries not available from Canada, excellent communications infrastructure, a solid commercial legal framework that protect international investors, shares the same time zone and boasts fast air links and excellent shipping infrastructure.

We continue to evaluate countries for the necessary conditions to do business, and will update / change our recommendations to include them as conditions change.

YOUR BUSINESS. OUR COMMITMENT.

Captive Offshoring:  Is It Right for You ?

Despite its many advantages, Captive Offshoring is not right for everyone.

Captive Offshoring is recommended for firms with established businesses, experienced management with strong communications and change management skills, and who can and will dedicate the necessary resources.

Any export oriented initiative, whether exporting products, services or internal processes, exposes the home office to continuous operational and cultural challenges, and will introduce new concepts, ideas and present business opportunities. Preparing the parent organization to obtain maximum value is usually more important than the business activity, what a captive offshore office would do, or where it is located.

A few of the characteristics that must be considered, and that we can help assess and develop are:

  • Adaptability & Flexibility: the organization and management should have established policies and procedures to drive adaptability
  • Change Management: experienced management with well established and clearly communicated change management methodologies
  • Strong communications protocols and methodologies that ensure effective, real time communication with proven error and omission checking
  • Experienced operating distributed teams, especially when integrating them across diverse teams is useful
  • KPI’s should be Value and Productivity based and inclusive to cross cultural teams
  • Innovative and Entrepreneurial: offshoring offers access to new products / services, and often new ways of doing business – can you take advantage?
  • Strongly recommended to have the resources necessary to fund, and operate the new office prior to starting out

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