Pod Engagements, our Enterprise BPO Services model

Before a Pod can operate, you need to determine how it will be legally structured. You can operate under Felcorp’s existing entity, or establish your own captive structure in the offshore country. Each option has different implications for control, payroll, tax and compliance.

• Operating under Felcorp’s entity provides the fastest and lowest-cost path to launch
• A captive structure provides greater control but requires local registration and ongoing compliance management
• Entity choice affects employment contracts, payroll processing and how tax obligations are managed

All Pod Engagements are subject to local tax obligations in the country where staff are based. This includes payroll tax, withholding obligations indirect taxes depending on the jurisdiction. Felcorp manages local tax compliance within our commercial model but not on your own legal structure.

• Payroll and withholding tax obligations are factored into Felcorp’s commercial fee structure
• Your accountant should review the cross-border arrangement against your local tax obligations
• GST or local indirect tax equivalents may apply depending on the operating jurisdiction

Running offshore staff creates legal obligations under the laws of that country. Felcorp retains in-country legal counsel in each jurisdiction we operate in, covering employment disputes, regulatory changes and contractual matters as well as litigation in contract disputes. For captive structures, it is highly recommended your have your own local legal counsel.

• Felcorp’s in-country legal coverage handles employment matters, disputes, and regulatory compliance
• Captive or hybrid pod structures may require the client to retain independent local legal counsel (very strongly advised)
• Dispute resolution protocols and responsibilities under different scenarios should be agreed before commencing

If your Pod operates through a related entity offshore, transfer pricing rules will likely apply to your local entity. Tax regulations usually requires that cross-border transactions are conducted at arm’s length. Please be mindful of

• Transfer pricing applies when there are cross-border related-party transactions between your entities
• ATO arm’s length requirements mandate documentation for all related-party cross-border arrangements
• A qualified tax adviser should prepare transfer pricing documentation before the engagement commences

Felcorp manages the end-to-end recruitment process, but the quality of a pod is directly determined by how well roles are defined before recruitment begins. Vague role profiles are the most common cause of pod underperformance. Seniority levels, technical skills, language requirements, and system experience must all be specified before sourcing starts.

• Define precise role profiles including seniority, technical skills, and system requirements before recruitment begins
• Client involvement in shortlisting and final selection is strongly recommended for all roles
• Recruitment strategy should be reviewed and agreed by all key stakeholders before Felcorp begins sourcing

Felcorp provides an on-site Team Leader and operational oversight for every pod. However, the strategic direction and day-to-day workflow must come from the client side. Without a dedicated pod manager, even well-staffed pods fail to deliver consistent output.

• Appoint a dedicated internal pod manager in-house before the pod goes live
• Clearly define who sets tasks, reviews work and escalate issues in writing, before the pod starts
• Felcorp can assist in pod management or leave it up to you manage by yourself.

When offshore staff access your systems, templates, methodologies, or client data, intellectual property protection becomes critical. Strong employment contracts and NDAs are required to protect your data as well as legal representatives to enforce legal protection.

• All offshore staff sign IP and confidentiality agreements as a condition of employment
• Optional controls include screen monitoring, watermarked documents, and role-based access restrictions
• IP and privacy obligations must be reviewed before any personal client data is transferred offshore