Outsourcing, Offshoring, Accounting & Project Management, CRM Consulting and Corporate services

Outsourcing's challenges explained: Its about control

Outsourcing is something that is working very well for many clients. Major players such as Infosys, Tata, and Convergys lead the way in deploying hundreds of thousands of workers to the Fortune 100. In some cases they directly hire the staff for example for $3/hour and resell the staff for $6/hour. This results in a cost pressure that is passed to to the employees, and results in massive workforce turnover. In some industries such as customer service and data entry, this turnover is acceptable.


Some clients seek greater control over this process. Some hiring managers seek to develop a direct employer-employee relationship with their staff, and these managers prefer to have transparency and control relating to the hiring of staff and the salary paid to them. Brealant's solutions facilitate such control and transparency.


We work with clients to create a tailor an ill fitting suit into a customized suit, for little to no extra cost. The customized solution is solving the BPO issue for clients, control and transparency.

 

The problem: BPO Turnover in the Philippines

According to the 2016 Towers Watson survey, the most commonly cited reasons why employees left a company were: better pay opportunity (70 percent), relocation or family migration (32 percent), relationship with supervisor (29 percent), health-related reasons (15 percent), and flexible work arrangement or work-life balance (14 percent). 


Given that average salaries in Manila for BPO staff is around $500/month, it is quite easy to solve the turnover issue by paying $100 per month more in salary (about $0.75/hr). However, in the traditional outsourcing model, where worker's salary is not billed transparently, hiring managers don't have the control to simply pay a little bit more to attract and retain the staff they desire. 

 

The Solution: Control and Transparency through managed services

Brealant earns a fixed fee per staff per month regardless of their salary. 


We assist you with all HR, recruiting, and provide office space, yet we give you the control to say you want to pay John or Jane $100 more a month, and thus you can attract and retain better staff. As we charge a fixed fee per month, you pay your staff an extra $100 per month, while Brealant's fee remains the same. 


Turnover also costs Brealant money, as we pay for the recruiting, thus Brealant is also motivated to help you retain staff. 

The solution, an overview

The staff leasing model is quite simple, and is all based on transparency and control. 


Monthly salary (including benefits): $X/month

Brealant fee (including office): $650/month

----

Total fee to client: $650/month + salary


The Brealant fee includes all HR management, cubical or desk for one staff, computer, IT support, HR, payroll, recruitment, etc. Thus if if the hiring manager decides to give a raise to Jane, the fee to Brealant remains the same. We will show an example below to explain it. 


If the hiring manager loves Jane, he can give Jane a $100/month raise to Jane, taking her new salary to $700 per month. This type of small raise can often be the difference in keeping or loosing a team member in the highly competitive employment marketplace in the Philippines. 

 

Pre-raise salary:

Staff name: Jane Doe 

Job title: Customer Service Executive

Monthly salary (including benefits): $600/month

Brealant fee (including office): $650/month

Total fee to client: $1250/month

 

Post-raise salary:

Staff name: Jane Doe 

Job title: Customer Service Executive

Monthly salary (including benefits): $700/month

Brealant fee (including office): $650/month

Total fee to client: $1350/month 

Both options above provide full transparency and control. To ensure that the staff compensation remain reasonable, Brealant employs a full time recruitment and HR team (at Brealant's cost). You are always welcome to interact with our market experts free of charge to assist you in managing your benefits and salary levels. Alternatively if you want to replace a staff, we will provide that service free of charge, as it is our duty to locate and assist you with retaining the staff you demand.

The solution overview

Brealant provides all recruiting and HR as part of our solution. It is included in our $650/month per person fees and there are no extra charges for headhunting, etc. Below is an overview of the high level offering. 

 

Dedicated workspace & PC

Our monthly fee includes a dedicated work-space in our grade A office buildings, complete with managed PC, VOIP phone, generator backup, redundant fiber internet access, & IT support.   

Time & attendance

We use login based systems that prove to all clients that your staff are in our offices and working for the hours you pay them for. Our login systems are accessible to clients in real time. 

 

Security

One of the most important commitments that Brealant makes to all clients in that of complete security. We use Symantec Endpoint Security, VPNs, bio-metric and card-key access, live video surveillance. 

Recruiting & HR

We recruit and manage all staff employment, including payroll. We ensure all HR compliance is followed and work to maintain a happy and satisfied workplace. It is our job to assist you in finding qualified staff. 

Solutions deployment options (managed or dedicated)

You can choose if you would like your staff to be employed by Brealant Inc, working for your company under our umbrella or they can be employed by your wholly owned subsidiary in the Philippines (that we help you to setup). If you choose the latter option, in addition to corporate setup with will also assist with ongoing compliance.  Thus there are two general options below:

 

Your staff, our company

Most clients choose that staff shall be employed under our umbrella. This passes all risk to our company as the staff are legally employed by Brealant. This is the most cost efficient option, as there is no redundant accounting or compliance tasks. We hire the staff you want, we provide you with full transparency on staff compensation, and full control over hiring and firing of your staff. 


 

Your staff, your subsidary (managed by Brealant)

Some clients choose that staff shall be employed by a subsidiary operating in the Philippines. Often these clients want to sell directly into the Philippines and need an entity in the Philippines or clients corporate policies demand that staff are working for a company owned subsidiary.  In this option staff are legally employed by your subsidiary. Brealant provides all compliance and accounting services for this subsidiary, in addition to fully managed HR. This solution is generally more expensive. 

The managed services model and how it works in detail

Below is a diagram that attempts to illustrate the way in which Brealant and clients collaborate to get work done and manage the business. 

In the above diagram we wish to explain and highlight a few choices to make. These choices are flexible and can be changed over time. Brealant will assist you at every step. 

  • Your Onshore Manager: The Onshore manager is an optional position, and there are multiple approaches to accomplishing management in the Philippines.  
    • Some clients to send a full time expat as Onshore Manager (to be located in the Philippines), who also works from our offices. In this case we assist the Onshore manager with locating suitable housing, as well as assist him or her in obtaining the necessary work permits to allow them work in the Philippines. 
    • Some clients elect for the team to be instead managed by the Offshore Manager in the the home country (such as the United States), thereby eliminating the Onshore Manager position in the above diagram.
  • Supervisor: The Supervisor is an optional position, like the Onshore Manager
    • Some clients seek for Brealant to recruit a full time Supervisor. This can be a good decision as this staff acts to supervise the daily work organization in the Philippines. This position naturally has a higher salary than general individual contributor staff, but still the salary is still comparatively low. 
    • Smaller teams are generally supervised by the Offshore Manager in the home country, thus eliminating the position of Supervisor. 
  • Advisory/Consulting: It is common that clients will start without either Supervisor or Onshore manager, to test the model. In this case Brealant will advise the client when we feel it is necessary to add more management staff. It is also possible to hire part time management staff that supervise local staff for one day per week for example. 

An offshore operation customized for your needs...

Your office Brealant will provide your staff with either dedicated desks in our shared environment or a dedicated office managed by us so you can put up your own branding and/or encourage your corporate culture. 
Your employeesWe recruit and hire staff according to your customized job descriptions. You will choose which staff to hire and what to pay them. These staff will be assigned exclusively and full time to your company. Your staff will never be reassigned to a different client.  If you need your staff to fly to trade-shows around the world to assist your company, we also will assist with that. 
Your tools You are free to choose the systems your staff will use. Windows, Mac, Linux, Dropbox, Salesforce, Oracle, you choose and we will support it (provided we have the expertise). 
Your cultureTraditional outsourcing creates a culture where workers are not provided with the healthy environment where they get the reward from being part of the creative process of a team. We encourage you to treat your team as an extension of your company. We also provide monthly pizza parties and annual Christmas parties to create a fun work environment for all managed services staff at Brealant. 
Your policiesWe will ensure that your Philippine operations will adopt your company policies, processes, and procedures for IT and data security, human resources management, work floor policies, compliance with industry regulations, and any other aspect of your operations.
Your controlYou are in control of hiring and firing staff, setting staff salaries, defining policies, culture, and deciding on work tools and hours (we operate 24 hours). Brealant is here to make sure it is all running, and that staff actually work the hours you pay for. Optional: security cameras, card key or biometric access control, and background checks for staff.
Your companyIf in the future you would like to form your own company in the Philippines and direct hire your staff, we will also support you with that. Brealant will assist you with this incorporation.  

How much & what's next?

We make our prices as simple as possible. What we do is complicated, but what we charge is meant to be simple and clear. 


  • Staff leasing starts at $675/month per employee, plus salaries. No hidden costs.
  • Company formation (if you choose that additional option) details and prices are found here.


What's next? The next step is to begin a dialogue with Brealant about your needs. We are happy to help guide you to the solution that is best for you. Please contact us or read more about our services.