Outsourcing Consulting

Locate an Outsourcing Provider

TMG will, based on your specifications, locate a suitable outsourcing provider. The core activities TMG performs to achieve this are:

• Ask for critical information from the prospective provider including references

• Talk to references

• Ask for samples and forward them to you

• Ask for free trials and forward output to you

• Negotiate prices based on your preferences

• Finalize contract documentation in consultation with you

• Connect selected provider to you

Service fee: $2997

 

 

Start A Fully-Owned Captive Center at Chennai, India

“Fully Owned” is defined as a company in which you own all the stock.

In many cases, such as software development centers or business process outsourcing (BPO) centers, 100% foreign investment is allowed (see http://www.indiainbusiness.nic.in/industry-infrastructure/service-sectors/it.htm).

In the other cases, the foreign investment can vary from nil onwards (see http://www.dipp.nic.in/ for details).

The recommended strategy for setting up a fully-owned center is for you to depute a Senior Project Manager with purchasing authority to Chennai. We will present him with choices relating to the several tasks listed below as well as our recommendations. He takes the call on the final decision, with us being available to provide answers to any questions that he may have in the process.

The list of tasks TMG can perform for you for setting up a fully-owned center in Chennai follows. You can contract with TMG for any subset of the list. Indicative fees in $US are mentioned alongside each task:

1. Rent a temporary office for you in a business center: $97 service fee, you pay rent directly
2. Set up a local bank account at a bank of your choice: $47 service fee
3. Locate permanent premises through realtors: $97 service fee, you pay realtor fees directly
4. Sign a lease deed or buy space in your name: $97 service fee, you pay registration taxes and stamp duty directly
5. Compile a Memorandum of Association and Articles of Association for the new company $1497 service fee, three copies of each included
6. Register a joint stock company in your name with the Registrar of Companies: $1497 service fee, you pay registration taxes and duties directly
7. Apply to the Registrar of Trademarks to secure the name as a trademark: $497 service fee, you pay registration taxes directly
8. Apply for a “Software Technology Parks of India” STPI license which entitles you to concessional income tax: $497 service fee, you pay application fee directly
9. Apply for and obtain an electricity connection (if not already available.): Service fee will be quoted on case-by-case basis
10. Identify an interior designer: $97 service fee
11. Interface between you and interior designer: $197 per month service fee
12. Supervise interior fitout: $37 per day service fee
13. Purchase and install generator backup (if not already available): $47 service fee, you pay generator vendor directly
14. Purchase and install UPSs: $47 service fee, you pay generator vendor directly
15. Design your power distribution system: $0.04 per square foot service fee
16. Lease or buy air conditioning plant: $47 service fee, you pay HVAC vendor directly
17. Rent or buy desktops and peripherals: $47 service fee, you pay computer vendor directly
18. Interview and hire staff based on your specifications: Service fee one month’s salary per hire, you pay any advertising costs directly, 30-day free replacement guarantee
19. Arrange for outsourced functions like cafeteria operation and janitorial services: $47 service fee

 

 

Start a Jointly-Owned Captive Center at Chennai, India

In this case you invest only part of the funding and a local partner the rest. Since your joint venture partner would best be someone with whom you have shared a successful track record, TMG does not offer to find joint venture partners.

Your partner, being Indian, is most likely to have his own infrastructure for performing all the tasks listed under “fully-owned” above. In the event that he does not, TMG will be happy to provide only those that are needed.

 

 

Rent a Captive Center at Chennai, India

This is the fastest and lowest-risk method of setting up an offshore development center in India.

An existing Indian company creates a captive division for you (the facility includes office space, personnel, hardware, software and support services); you rent it from the Company for a fixed fee. Typically only top managerial staff will need to be brought in from your home location.

The services TMG provides in this regard are essentially the same listed under “Find an Outsource Provider”:

• Locate an outsource provider in the country of your choice
• Ask for critical information from the prospective provider including references
• Talk to references
• Ask for samples and forward them to you
• Ask for free trials and forward output to you
• Negotiate prices based on your preferences
• Finalize operational documentation in consultation with you
• Connect selected provider to you

Service fee: $2997

 

 

Buy an Indian Company that Has All the Facilities I Need

TMG is working on ways to provide assistance to clients who would like to do this. Please message us if you would like to stay updated on the status of this offering.

 

 

Why Outsource in the First Place?

• Based on our experience with a vast array of clients over more than a decade, we know that labor arbitrage and the resulting cost reduction is the compelling reason.
• Theoretically, outsourcing also frees up your labor, time and perhaps funding to use for your core competencies. In reality, these are side benefits; cost reduction is the true king.
• In most professional areas, the question, "Shall we outsource to a less expensive economy?" does not have to be asked. Your competitors are already doing it and have reduced their costs. If you do not follow suit, you will perish.
• Your imperative is to outsource wherever it can be done with satisfactory accuracy, timeliness and cost savings. TMG has been deeply involved in outsourcing as a provider for almost a decade and will be happy to use its expertise to assist you through its outsourcing consulting service.

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