Managed Offshoring Services

Level US Experience Hourly Management Fees/Staff Member
6 to 10 11 to 20 21 to 30 31 to 40 41 to 50 51+ Above

Level 1

-

$5.00

$4.50

$4.00

$3.50

$3.00

Custom Quote

Level 2

-

$5.00

$4.50

$4.00

$3.50

$3.00

Level 3

1 Year

$6.00

$5.50

$5.00

$4.50

$4.00

Level 4

2 Years

$6.00

$5.50

$5.00

$4.50

$4.00

Level 5

4 Years

$7.00

$6.50

$6.00

$5.50

$5.00

Level 6

5 Years

$7.00

$6.50

$6.00

$5.50

$5.00

Level 7

7 Years

$8.00

$7.50

$7.00

$6.50

$6.00

Level 8

10 Years

$8.00

$7.50

$7.00

$6.50

$6.00

+ Actual Salaries & Bonus Paid to Staff Members

Additional Considerations

Operational Flexibility and Freedom:

Our clients typically begin with a smaller setup, and as they expand, we transition to managed offshoring services. The purpose of this shift is to give our clients more control over key decisions such as hiring, appraisals, promotions, terminations, as well as overall team management, designing and operating their own policies and guidelines. This model also allows them the flexibility to establish their own policies and procedures tailored to their specific needs.

Staff Notice Period:

The standard notice period for staff will be two (2) months, unless otherwise specified in the employment agreement or required by applicable law.

Billing Cycle:

The billing cycle will typically be on a monthly basis. The client shall be liable to remit payment for each invoice within seven (7) days from the date the invoice is issued.

Monthly Actuals Reimbursement (MAR):

The actual compensation, including salaries, bonuses, and any cash benefits provided to staff, will be charged separately on a monthly basis, in addition to the fixed management fees, based on the actual amounts incurred. This charge is referred to as Monthly Actuals Reimbursement (MAR). For the purpose of MAR, the conversion from U.S. Dollars (USD) to Indian Rupees (INR) shall be calculated using the closing exchange rate on the last working day of the month on a recognized Indian stock exchange, plus a 1% currency conversion charge.

Deposit:

We will charge a deposit of $2,000 per staff member, which is fully refundable. This deposit will be refunded/adjusted in the event of a reduction in staff count or upon termination of the agreement, as part of the final invoicing. The purpose of the deposit is to maintain sufficient working capital to manage the offshore team.

For instance, if the staff count increases, the deposit will be adjusted proportionately and reflected in the monthly invoice. Similarly, if the staff count decreases, the corresponding amount will be refunded or adjusted in the invoice for that month.

  • Example 1:
    October: 10 staff members → Deposit charged = $20,000. November: 5 additional staff members onboarded
    • Additional deposit charged = 5 x $2,000 = $10,000. Total deposit = $30,000.
  • Example 2:
    April: Staff count reduces by 3
    • Deposit adjusted = 3 x $2,000 = $6,000.
    This amount will be deducted from the April invoice.

The deposit is refundable but does not accrue any interest

Inclusions - Managed Offshoring Services

Managed Offshoring Services cover all essential functions and services required to effectively support and manage the offshore team, including, but not limited to, the following:

Infrastructure:

The provision of office space, workstations, conference rooms, cafeterias, computers, and all necessary facilities required for the offshore teamʼs daily operations

IT and Data Security:

Implementation and maintenance of secure and robust IT systems designed to protect and safeguard client data, including ongoing monitoring, threat prevention, and data loss prevention measures.

Recruitment Services:

Full-cycle recruitment services, including sourcing, screening, interviewing, and onboarding of offshore team members. This process includes verifying the qualifications, skills, and experience of candidates in alignment with client requirements.

Human Resource Policies and Procedures:

Assistance in drafting, customizing, implementing, and maintaining employee policies and procedures tailored to meet the clientʼs needs, including ongoing HR support.

Employee Life Cycle Management:

Comprehensive management of the employee life cycle, from onboarding through termination, including performance appraisals, career development, promotions, and employee exits.

Administrative Services:

Day-to-day administrative support for offshore team members, including but not limited to payroll processing, attendance tracking, and handling of administrative queries.

Learning and Development (L&D):

Access to ongoing training and development programs designed to enhance the skills and performance of offshore team members, in alignment with client-specific needs and industry standards.

Dedicated Leadership Support:

A dedicated leadership team responsible for overseeing and managing key functions, including infrastructure, recruitment, HR policies, and employee lifecycle management.

Employee Benefits:

As per the companyʼs policy, employees will be entitled to certain benefits, including interest-free employee loans, medical insurance, life insurance, personal accident insurance, transportation or drop-off services, and participation in company-sponsored events, celebrations, and outings.

Compliance:

As the designated employer on record, the company assumes full responsibility for all statutory and regulatory compliance requirements, relieving the client of any legal obligations related to employee compliance matters, including but not limited to tax, labor laws, and other statutory obligations.

For referring to a comprehensive list of things that are included please click here.

Management Fees for Staff Working Fully from Home:

In the event that any employee is engaged on a fully work-from-home ("WFH") basis, the fixed management fee applicable to such employees shall be reduced by $1 per hour as specified in the pricing schedule. The management fee for employees who work under a hybrid model or from the office shall remain unchanged and shall continue to be charged at the standard rate.

Pricing Schedule:

The fees for the services rendered under this Agreement shall be determined by the employee's experience level and the total number of employees engaged during each calendar month. These fees shall be periodically updated or upgraded as outlined in the applicable pricing schedule.

Team Size and Levels:

The team size and staff levels will be assessed on the last day of the previous month. The staff member’s level is determined by their experience in the US or Canadian side, regardless of whether this experience was gained with our company or previous employment. The rates specified in the agreement are determined based on the staff member’s level and the overall team size. As the team size increases, the applicable rate of the corresponding slab shall apply uniformly to the entire team, not just to the incremental members.

The fee structure based on team size categories (slabs) shall apply uniformly, irrespective of the starting point or structure of the team size table. Whether the team size categories begin at 10 members, 11 members, 21 members, or any other starting point, the principle of applying a uniform rate across the entire team within the relevant size category remains consistent.

These provisions are universal and do not require any modifications to the Agreement’s terms, regardless of the starting point or arrangement of the team size table.

Example

If the Client’s offshore staff size was 35 members as of 30th September 2024 and increased to 45 members by October 31, 2024, the applicable slab rate for September 2024 Invoicing would fall under the “31 to 40 members” category. For November 2024, with a team size of 45 members, the applicable slab rate would shift to the “41 to 50 members” category. This will apply uniformly to the entire offshore staff.

Option to hire from other cities:

Our proposal assumes that your goal is to scale up to 100 people, or at least 75, within the next two years. While most of talent will be sourced from Ahmedabad, we are ready to assist in recruiting from other cities as needed, ensuring that 50% of the team is based in Ahmedabad.

One-Time Transfer:

Should the client elect to become the employer on record following the transition to the CAPTIVS model, a one-time transfer fee, equivalent to twenty-four (24) months of management fees, shall be applied. Upon payment of this fee, the client will be granted the right to hire and manage the offshore personnel independently, and we will waive any non-solicitation provisions that may otherwise apply.

Dedicated Office Space Setup:

We can also establish a customized dedicated office space, complete with the necessary amenities, infrastructure, and facilities, at an additional cost as mutually agreed. This is typically arranged through a separate agreement. Therefore, even if the managed offshoring services contract is terminated, you will still be able to retain the office space and continue operating independently under same office.

Minimum Billing Period:

The Minimum Billing Period is the agreed minimum duration for which Offshore staff services are provided, starting from the staff's assignment date. Unless explicitly agreed in writing through a Service Confirmation Agreement, email, or other formal documentation, there is no mandatory Minimum Billing Period.

If the Client terminates the Offshore staff's services before the agreed Minimum Billing Period ends, the Client will be required to pay the full amount for the entire period, regardless of the work completed. The Client acknowledges that we engage Offshore staff based on this agreed commitment, ensuring operational and financial alignment between both parties.

Pricing Adjustments for Level Changes During the Engagement:

As team members accumulate experience and their roles are elevated during the course of the engagement, their levels will be upgraded. Such upgrades will result in corresponding adjustments to the pricing, in accordance with the applicable management fee schedule. All pricing adjustments shall be communicated to the client in advance and will take effect from the date of the level change.

Continuation of Services After Transfer:

Following the client's transition to becoming the employer of record, should the client wish for us to continue supporting certain functions under a management fee arrangement, we are able to accommodate this request. The pricing for such services will be determined based on the specific scope of work required and agreed upon by both parties.

Wider Access to Talent:

Under this proposal, the client shall have full access to all designated office locations in India and the Philippines for the purpose of recruitment. This structure allows for flexibility in sourcing talent across multiple locations. Should the client prefer to concentrate their workforce in one or two specific cities, such preference can be accommodated by hiring and retaining personnel exclusively in those locations. However, the client acknowledges that concentrating talent in fewer locations may increase the risk of attrition and potentially result in higher costs.It is strongly recommended that the client diversify its talent pool across various locations. Specifically, it is advisable to source talent at levels 1 to 5 from tier 2 and tier 3 cities, where a more cost-effective talent pool with higher retention rates may be available. For higher-level positions (levels 6, 7, and 8), if suitable candidates are not available in these tier 2 or 3 cities, recruitment may be conducted from larger metropolitan areas, where the talent ecosystem is more developed.

Customized Terms of Employment:

All personnel recruited pursuant to this agreement will have their terms of employment specifically tailored to align with the unique requirements of the client, to the extent feasible, mutually agreeable and permissible under applicable law. Such customized terms shall be formalized in writing. Each employment contract shall include an addendum specifying that the employee will be exclusively assigned to, and will render services solely for, the respective client during the term of their engagement.

MYCPE Personio:

We will provide you with a dedicated HR technology platform called MYCPE One Personio, designed to help you track and manage your entire offshore team efficiently.

Customize HR & Ops Playbook:

Once we transition to the Managed Offshoring Services, you will have immediate access to our existing HR and Operations playbook. You can use this as a reference, and we can fully customize the HR and operational policies and guidelines to align with your firmʼs culture and specific needs.

Non- Solicitation of Staff:

We will also establish a non-solicitation in agreement to protect both parties. This agreement ensures that the team members assigned to work for you are exclusively dedicated to your projects and cannot be reassigned to any other clients during the course of their engagement or thereafter. Moreover, this agreement will include a clause that prohibits you from hiring these individuals directly, ensuring that the professional relationship remains managed through our existing arrangement. This measure helps maintain stability and continuity in the working relationship, protecting the investment both sides have made in the collaboration.

Customized Proposal:

This is standard proposition for Captives. Once we have a thorough understanding of your needs, we will provide you with a comprehensive proposal tailored to best meet your requirements.

What is Managed Offshoring Services

The Managed Offshoring Services is a straightforward and practical way to manage offshore teams, especially as your team grows. Instead of paying a fixed hourly rate, you pay the actual salaries of your offshore staff along with a management fee. This management fee takes care of all the necessary support your team needs to operate smoothly, including HR services, payroll processing, IT support, legal compliance, and infrastructure setup.

This model lets you focus on managing your team’s daily work and building a strong team culture while leaving the backend tasks to us. It’s designed to remove the administrative burden from your plate, making it easier to run your operations efficiently as your team size increases. Whether it’s handling employee onboarding, ensuring secure IT systems, or managing workplace requirements, we’ve got it covered, so you can concentrate on achieving your organisational goals.

Why Switch to Managed Offshoring Services?

This is built for firms looking for control, scalability, and flexibility while ensuring operational efficiency. Here’s why it works:

1. Enhanced Team Integration

This lets you focus on managing your team’s daily work and building a strong team culture while leaving the backend tasks to us. It’s designed to remove the administrative burden from your plate, making it easier to run your operations efficiently as your team size increases. Whether it’s handling employee onboarding, ensuring secure IT systems, or managing workplace requirements, we’ve got it covered, so you can concentrate on achieving your organisational goals.

  • Operate your offshore team as if it’s part of your in-house team.
  • Customize HR Playbook, policies, and procedures to reflect your company’s values and needs.
  • Foster a team dynamic that feels cohesive and aligned with your organization.

2. Flexibility in HR Decisions

Take charge of critical decisions like:

  • Compensation structures
  • Promotions and bonuses
  • Retention strategies

This hands-on approach ensures your offshore team aligns with your company’s goals and culture.

3. Improved Retention

  • When team members feel integrated and valued, they are more likely to stay.
  • The Managed Offshoring Services creates an environment that prioritizes connection, loyalty, and job satisfaction.

What’s Included in Managed Offshoring Services?

The management fee covers a wide range of services that simplify operations for you. These include:

  • Recruitment Services: Sourcing, hiring, and onboarding of offshore staff.
  • Human Resources Management: Managing Human resources and related functions
  • Payroll and Labor Compliance: Payroll, compliance with labor laws, employee benefits administration etc.
  • IT Services: Providing the necessary IT infrastructure, secure systems, and communication tools.
  • Data Security: Ensuring data security measures and compliance with data privacy regulations.
  • Learning and Development: Providing training and professional development for the Offshore staff.
  • Leadership Oversight: Access to the leadership team for ongoing supervision and operational alignment with the Client’s objectives.

For a detailed list, check out the Detailed Inclusions.

What This is Not

Not a Traditional Dedicated Office Model

Instead of tying your team to one office location, we adopt a distributed micro-team strategy:

  • Access a wider talent pool by hiring across multiple locations.
  • Reduce costs and improve retention by allowing employees to work closer to their preferred locations.
  • Minimize risks with geographic diversification, offering flexibility and resilience.

Not Just a Cost-Cutting Measure

  • This model isn’t about cutting corners—it’s about building a sustainable, scalable team.
  • You’ll gain flexibility to grow your team while maintaining full operational support.

Why It Works for You

The Managed Offshoring Services is perfect for mid-to-large teams because it offers the best of both worlds:

  • Managerial Control: Shape your team’s culture, implement policies, and make HR decisions.
  • Operational Support: We handle the backend tasks—recruitment, compliance, and IT—so you don’t have to.

This balance lets you focus on strategic goals while we ensure everything runs smoothly in the background.

A Scalable, Smarter Approach

As your business grows, it’s important to scale in a way that works for you. The Managed Offshoring Services helps you keep control over your team’s work and build a positive team culture. It also ensures your offshore staff feels valued, which reduces turnover. By using this model, you can hire from a wider pool of skilled professionals across different locations, finding the right fit for every role.

Providing PTO to your offshore staff member

Why we should pay leaves to Offshore Staff ? Our Offshore staff leaves are higher then our onshore staff?

Our current policies include 18 paid holidays and 10 PTO days as part of our standard offerings. It’s essential to address any misconceptions that these benefits are additional—they have been an integral part of our policies from the outset. For client moving to managed offshoring services, intending to changes policies, To ensure clarity and consistency, let’s take steps to communicate this effectively moving forward. When implementing or revising leave policies for offshore, it’s crucial to keep the following considerations in mind:

  • Gradual Transition: Any changes should be implemented in a phased approach to ensure a smooth transition and minimal disruption for employees. Sudden overhauls can lead to confusion and resistance.
  • Cultural Alignment: Policies must respect and align with the cultural norms of the region. For instance, in some countries, certain types of leave and benefits are culturally expected and highly valued.
  • Regulatory and Legal Compliance: Policies must strictly adhere to the legal and regulatory requirements of the region, such as the Leave and Gratuity Act, labor laws, or equivalent frameworks. This ensures compliance and avoids potential legal risks.
  • Minimum Standards and Progression: All policies should meet or exceed existing standards. There should never be a reduction in benefits. Instead, they should be designed to progressively enhance the overall employee experience.
  • Competitive Benchmarking: It’s vital to evaluate and match or surpass what competitors in the industry and region are offering. This ensures we remain an attractive and competitive employer in the market.
  • Employee working Opposite Hours: In India and the Philippines, employees working opposite hours from their normal routines often face unique challenges, especially when adapting to night shifts or other unconventional working hours. So usually they don't get any time to spend with family on weekdays and festivals and holidays are the only time wherein they can do the same.

By addressing these aspects thoughtfully, we can ensure our policies are well-received, compliant, and aligned with both employee expectations and market standards. Let’s also ensure we clearly document and communicate these considerations to all stakeholders.

Offshore Staffing Solution for Accounting Firms | Entigrity