Virtual Offshore Entity Model

GlobalSoft's Virtual Offshore Entity (VOE) is an engineering service established to operate like an offshore operation for a software vendor. It exists within the operations of an established software engineering business, a discrete legal entity, which provides physical facilities, legal operating status, staffing, HR management and administration.

Legally, the VOE is part of the operations of GlobalSoft's engineering business. In practice, the operations are managed by the software vendor just like an offshore entity or regionally located engineering team. The activities of the staff, the roles and functions that are performed, the processes followed, etc., are all determined and managed by the vendor.

A useful analogy may be a co-location facility, where the facility provider is responsible for providing the physical building, security, power, connectivity and other infrastructure level essentials. The collocation clients are responsible for installing, configuring and managing their own servers.

Similarly, the VOE model gives vendors the flexibility of using their own processes and operating systems in a low cost region, without the responsibility for payroll, rent, tax filings and other legal and administrative responsibilities.

A broad range of engineering services can be provided under the VOE model, but the most obvious are technical support, QA and product engineering.

Why

When vendors look to access low-cost engineering resources, they are typically presented with two options: outsourcing the function to a third party, or establishing their own operation in a low-cost location. In many cases, the outsourcing option is not attractive, and establishing an offshore entity is costly and time consuming. This is when a VOE becomes the best solution--all the advantages of an offshore location without the time, cost, compliance and general headaches involved in setting up a separate operation.

How it Works

GlobalSoft's VOE works the same as a vendor's onshore operation, with no additional compliance requirements. GlobalSoft takes care of setup and administrative operations; the ISV carries out functional management, using the same methods used in its home operation. See How It Works to learn what is involved in setting up and running a VOE. Use the Resource Cost Calculator to compare the cost of a home-based team and a VOE team.

Applications of the Virtual Offshore Entity Model

The VOE model can be applied towards any type of software engineering services, but is especially well suited for staffing of the following teams:

  • Technical support
  • QA
  • Product engineering