Incubate Operate Transfer Services(IOT)
As a group of professionals dedicated to increasing the efficiency and optimizing the costs of companies outsourcing jobs, we follow high quality standards set by the ICAI and other regulatory authorities in India. We deliver personalized outsourcing services as per client's requirement and maintain constant monitoring on quality and service.
We offer small to medium-sized companies a variety of business models to answer provide both ownership and protection of intellectual property, whilst ensuring cost benefits and shorter startup time. Our clients can leverage our expertise in India-based operations and take advantage of our existing relationships with vendors, government and other agencies.
Our solutions are especially attractive to venture capital companies investing in hi-tech startups. VCs can make available the India-edge to their portfolio companies by consolidating them into a single development center. By sharing infrastructure, portfolio companies can freely scale up or down with their business and obtain economies of scale.
Pick from one of our readymade solutions below or we can tailor one for you.
We have canned solutions available for companies looking to bring offshore operations to India. These solutions have evolved from understanding to the needs of hi-tech companies in the US and other parts of the world. Our solutions take into consideration the salient needs of potential clients and incorporate our management's own experience with offshore development. We have successfully employed these business models to provide best-of-breed solutions to our clients.
Our models have been developed keeping the following factors in mind:
Provide high degrees of ownership and control
Allow clients to focus on project and technical issues
Protection of Intellectual Capital and Employees
Leverage our relationships with vendors and government agencies
Obtain economies of scale by consolidating and lowering overheads
Allow optional transfer of employees, facilities and operations over 2-3 years
While we can customize a solution to your needs, we offer the following two models at the outset.
The Incubate-Own-Transfer (IOT) model is designed for companies that are in a position to invest into a new and fully owned offshore development center in India. This model helps companies that have no prior experience with operations in India; companies that envision owning a fully owned center in India but do not have the legal and operational framework to do so in the immediate time frame.
Skygraph fully undertakes responsibility along with the customer to design and plan a new offshore facility in India. The location, size and design of the facility are approved by the customer based on headcount and plan over two to three years. Skygraph takes complete responsibility of the execution of the plan, ensuring that it complies with all laws of the land. Clients can gain as much as 3-4 months of startup time. Skygraph charges a reasonable management fee on the startup and monthly operations costs for the services provided.
Skygraph will be responsible for delivering the plan. This includes facilities setup, required clearances and permits adhering to local regulations during the startup stage. Skygraph can also facilitate the recruitment process; however, the customer will choose candidates hired for the project. Skygraph will provide complete operational support including HR, Administration, Accounts, etc. while the customer will be responsible for technical management. As an option, the customers can place a resident management team of their employees. Initially, all employees hired for the project including engineers will be employees of Skygraph.
For the first few months, Skygraph will provide the legal face of the operation while the customer sets up an India subsidiary (we will facilitate this). Once the India subsidiary is setup, Skygraph will transfer engineers into it. In due course, the entire center, including facilities and operations will be transferred to the customer.
The Fixed-Cost-Model (FCM) is suitable for smaller companies, especially startups, which are looking to build a team in India over 3-5 years, but do not want to invest in infrastructure. Skygraph offers to absorb the startup costs for the facility including hardware and house a dedicated development team for the customer. The engineers can be employees of Skygraph or the customer, while we continue to provide complete operational support for HR, Administration, Accounts, etc. The customer is charged a fixed fee per month. The fee is a derivative of the number of engineers and the facilities provided to the customer. Under this model, clients do not see any up-front costs. They pay monthly recurring costs and can still opt to transfer the operation and facility and create an India subsidiary.
Comparison of Two Models
||Borne by Customer
||Borne by Skygraph|
||Actual + Variable Management Fee
||Engineer Salaries + Fixed Management Fee|
||HR, Admin., Accounting, Operations
||HR, Admin., Accounting, Operations, Hardware, Workstations, Internet Connectivity, Facilities|
||Dedicated. Location, design, size approved by customer
||Dedicated or shared with others|
||Percentage of Actual Cost
|Duration of Contract
||1 + year
||2 + years|
||Headcount + Facilities transferred at no cost
||Headcount + Facilities + Infrastructure transferred at a fee after 2-3 years; transferred at no cost after 4+ years|
||Selected by customer; Employees of Skygraph or customer
||Selected by customer; can be employees of Skygraph initially, transferred thereafter|
Skygraph is a moderate/ humble institution. Larger companies have preset ideas and rules for business activities that make them less flexible. Smaller companies, on the other hand, are compelled to accept change frequently due to market and financial trends. We are accomplished with necessary infrastructure and rich experience to offer you the best solution with the pliability to your specific needs. Therefore, the best option for you is “Skygraph”
||3+ Years with or without penalties
Frequently asked questions:
Q.Why should a company be interested in starting an offshore center in India?
A. Many companies have successfully used offshore centers in India to take advantage of lower costs, very fluent
English speaking talent, and time zone difference.
Q.Why should we come to Skygraph and not do it on our own?
A.Simply put, to obtain economies of scale and cash in on our knowledge and experience. From our past experience, we have observed that there is no cost benefit doing it on your own, unless you have plans to ramp-up to 150+ engineers. We will give you all the benefits of India offshore, with lower risks at the same or lower cost than you doing it yourself.
Q.Will it not be cheaper for us to start our own operations in India?
A. Our experience tells us that you will not get any cost benefits unless you reach a core mass of 150+ engineers.
Also, the startup time can be reduced by 3-6 months if you partner with us; all this provides significant cost savings.
Q. What services do you exactly offer?
A. We provide offshore facilities for hi-tech companies. These include office space, workstations, hardware, communication and Internet lines, Operations management including Finance, HR, Administration,
facilities management, etc.
We can also build a dedicated team for you depending on the projects
and skills needed.
Q.What are the benefits of using Skygraph?
A. You can leverage our experience, vendor relationships and obtain economies of scale by consolidating and sharing
overheads with other companies.
Q. Can you help setup a center anywhere in India?
A.Our strengths are in the states of Maharashtra, Karnataka, Tamilnadu and Andhra Pradesh. However we can help you setup a center elsewhere in India if you have a geographical preference.
Q. Is it really cheaper to have an operation in India?
A.Overall, YES! There are many opinions on how much advantage is gained, but typically you can budget for 3
headcounts in India for every headcount in the US.
Q.What about the backlash against outsourcing to India?
A.The fact is that companies have successfully used offshore centers to augment their resources in high-cost countries such as the US. For any business, it
is imperative that costs are kept low and profitability is increased.
Q.Can we choose our own business model?
A.Yes. If one of our existing business models does not work for you, we would be happy to consider an alternate model. Contact us further details.
What if we don't want to transfer the operations?
A transfer is optional. We would be happy to continue running your offshore center.
Q.What is the minimum and maximum size of operations?
A. In order to obtain economies of scale, a minimum of 25. There is no maximum. However, if you are looking to
expand beyond 200 employees, it is best to transfer the operation and take ownership when you have ramped up to 200 employees.
Q.Can we employ engineers on our payroll and have you provide the other facilities and operations?
A. Yes. If you have registered a company in India and met all other legal obligations specified by the Registrar of Companies, Labor Department, etc. you can employ personnel directly and house them within Skygraph.