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Managed Relocation
We target significant financial savings for our customers through a managed relocation of on-site contractors. We realize a seamless transition from on-site services performed by local contractors to equivalent, high-quality operations out of nearshore locations. A typical team transition program takes around 4-6 months, including the recruitment of remote resources and knowledge transfer.
Our approach is very similar to moving a team or consolidating operations between 2 different sites in Benelux. If this type of activity works or would work at our customers, then our proposed model is perfectly possible.
A seamless Transition Experience
We recommend a gradual transition of on-site contractors to the off-Site Skelia operating model, phased in small groups of 5-10 resources for which the model is applicable. This pragmatic approach, in combination with our international expertise and experience in transition management and governance, allows us to tune as-we-go and obtain high customer satisfaction levels.
Skelia’s “Plug & Play” model – simplicity and control as key strengths !
Our own experiences with offshore service companies were not always positive because of the complexity. Working with people from totally different cultures like India and China, in a different time zone, with other legal systems, sometimes doubtful ethical practices and a big staff turnover, make many customers come back on their decisions. Very often, there was a lack of the “yes is yes, no is no”-principle. Therefore, we created a simple model with a very low participation barrier, high comfort and flexibility.
The strength of Skelia lays in the simplicity of the offered “Plug & Play” business model which easily integrates with most organizations : we recruit teams in Ukraine for our clients in the Benelux and take care of the complete supporting framework (building, infrastructure, network, coaching of the staff, technical support, etc.). In many cases, this model is even efficient and profitable as from 1 person.
The relocated resources get seamlessly integrated with the existing customer organisation through the Skelia "Plug & Play" operating model.
Realizing substantial savings, in the first year !
The table below summarizes the indicative financial savings achieved by relocating 5, 10, 20 and 40 resources. The Return On Investment (ROI) is most often less than 10 months. As an example, relocating 20 contractors can already generate a saving of 450 K€ in its first year, 1.5 M€ per year after transition, while reaching cumulative savings above 6M€ over 5 years.
(*) Including planning & preparation, transition management, knowledge transfer, steady state governance, additional on-site coordination, nearshore facilities & connectivity, projected inflation.
Simulation - 20 external contractors
We have simulated below the indicative savings over 5 years by relocating a team of 20 external contractors (including set-up, transition, knowledge transfer, on-site coordination, program governance, inflation, etc.).
Applicable to a broad range of skills
The Managed Relocation Program proposedis viable for a broad range of competencies, as long as the related functions can be executed remotely (in cooperation with a local team). While customers often think first of relocating ICT resources, we find that relocating business operations and traditional supporting activities represent even more potential.
Skelia and IT2Profit, a unique partnership
Skelia already gives an answer to the current insecure company expectations by extending the local teams of Benelux companies with qualified people in nearshore locations. We established our first service center in Lviv, regional capital of West-Ukraine. So far, We are pleasantly surprised that the main goal of our clients was to stimulate further growth in the own country. More recently however, we witness increasing needs for immediate, dramatic cost reductions to rebound, or even survive !
Many of them however fear the complexity of investing in an in-house offshoring solution or work with large offshoring companies in India. We have now bundled our own forces with the strengths of IT2Profit, a Belgian company with leadership in outsourcing, transition management and business performance. Together we provide a great, more managable alternative for those companies that want to offshore and keep direct control.