A Pod Engagement is one of the most flexible and scalable offshore service models available. Unlike traditional outsourcing arrangements where the provider controls the full operational stack, a Pod Engagement is built around your requirements.
You decide how much business administration Felcorp manages on your behalf from a fully managed end-to-end service to a self-directed operation where Felcorp simply provides the infrastructure and staff.
That flexibility is a significant advantage. But it also means that the decisions you make before you start will shape the entire engagement.
What you take on and what you delegate is entirely up to you.
1. Pod Engagements Are a Long-Term Commitment
A Pod Engagement is designed as a permanent part of your operating model. Building an offshore pod requires investment in structure, recruitment, training and management that compounds in value over time.
Before committing, ensure your business is prepared to sustain a stable offshore operation over the long term.
- Plan for a minimum 3–5 year operational horizon
- Ensure you have an internal pod manager or coordinator in place before going live
- Do not use a Pod Engagement to cover short-term staffing gaps
2. Legal Entity Set Up and Structure
Before a Pod can operate, you need to determine how it will be legally structured in the offshore country. You can operate under Felcorp's existing legal entity, or establish your own captive structure in the jurisdiction.
Each option carries different implications for operational control, payroll administration, tax obligations and regulatory compliance.
The trade-off is quite simple, the more you control and manage yourself, the more time, resources and money is needed to properly manage it.
Felcorp can advise on your specific trade-offs and help you identify the appropriate structure.
If you choose to establish your own entity, Felcorp can support the process while maintaining operational management at whatever level you require.
- 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 structured
3. Local Tax Compliance
All Pod Engagements are subject to tax obligations under the laws of the country where your staff are based.
This includes payroll tax, withholding obligations and indirect taxes depending on the jurisdiction. The specific obligations vary by country and entity structure.
Where Felcorp manages your pod under our own entity, local tax compliance is handled internally by our commercial model.
If you operate a captive structure, you will be directly responsible for local tax compliance.
In either case, we recommend briefing your own tax advisers on the cross-border arrangement to ensure alignment with your obligations in your home jurisdiction.
- Payroll and withholding tax obligations vary by jurisdiction and are factored into Felcorp's fee structure where applicable
- Your own tax advisers should review the cross-border arrangement against your home jurisdiction obligations
- Indirect tax equivalents (such as GST or VAT) may apply depending on the operating jurisdiction
4. Local Legal Representation
Operating offshore staff creates legal obligations under the employment and commercial laws of the host country.
Felcorp retains India-based legal counsel services for legal representation (including litigation) which covers employment disputes, regulatory changes and contractual matters as they arise.
For clients operating under Felcorp's entity, this coverage is included within the engagement to a certain threshold limit.
For captive or hybrid pod structures, you may also need to retain independent local counsel separate from any agreement with Felcorp Support. This is particularly important for matters relating to your own entity's obligations or protection of rights.
Felcorp does not provide support to legal matters in which Felcorp is itself not a party to those proceedings.
- Felcorp's in-country legal coverage handles employment matters, disputes and local regulatory compliance.
- Captive or hybrid structures may require you to retain independent local legal counsel to protect your entity.
- Dispute resolution protocols and legal responsibilities should be documented before the pod goes live.
5. Transfer Pricing and Cross-Border Arrangements
If your Pod operates through a related entity in the offshore country, transfer pricing rules under your local tax legislation may apply. These rules generally require that transactions between related parties across borders are conducted at arm's length, meaning on terms that would apply between independent parties in comparable circumstances.
Felcorp's commercial fee model is structured to support arm's length compliance, but clients operating captive or hybrid structures should seek independent advice from a qualified tax adviser in their home jurisdiction. Documentation of the arrangement is typically required regardless of structure.
Felcorp does not condone or support any vehicle legal or otherwise to avoid, evade or reduce tax obligations through the use of our services.
- Transfer pricing rules apply when there are cross-border related-party transactions between your entities
- Applicable arm's length requirements mandate documentation for related-party cross-border arrangements
- A qualified tax adviser should prepare transfer pricing documentation before the engagement commences
6. Recruitment Strategy
Felcorp manages the full end-to-end recruitment process of sourcing, screening, interviewing, and onboarding. You may wish to not use our own HR division at all and by pass our recruitment completely.
Vague or incomplete role profiles are the most consistent predictor of pod underperformance.
You do not need to manage recruitment yourself but you do need to invest time upfront in defining what you need. Felcorp will provide role design templates, market benchmarks, and best practice guidance to help you build precise specifications.
The more clearly roles are defined, the faster and more accurately we can source the right people.
- Define precise role profiles including seniority level, 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 key stakeholders before sourcing commences
7. Pod Management Structure
Felcorp provides an on-site Pod Manager and operational oversight for every pod. Day-to-day HR, facilities, payroll, compliance and performance management are handled by Felcorp's local management team, unless you have elected to handle these internally.
Regardless, the strategic direction and workflow of the pod must come from you.
This is one of the most important and often underestimated aspects of a Pod Engagement. You can choose to engage Felcorp's management services at any level, from light-touch operational support to a fully structured performance management framework.
Whatever level you choose, Felcorp will provide best practice guidance and escalation support. But the accountability for what the pod produces remains with you.
- Appoint a dedicated internal pod coordinator on your side before the pod goes live
- Clearly define in writing who sets tasks, reviews output and manages escalations before the pod starts
- Felcorp's Team Leader manages offshore operations; your team manages workflow direction and output standards
8. Protecting Your Intellectual Property
When offshore staff access your systems, templates, methodologies or client data, intellectual property and data security become operational priorities.
All Felcorp staff are required to sign IP and confidentiality agreements as a condition of employment. Felcorp also operates under strict data security protocols, including controlled system access, physical office security, and regular compliance audits.
For engagements involving particularly sensitive IP or personal data, additional controls are available including screen monitoring, watermarked document workflows and role-based access restrictions.
Clients should also review their obligations under applicable privacy legislation in their home jurisdiction before transferring any personal data offshore, regardless of which entity structure is used.
- All Felcorp offshore staff sign IP and confidentiality agreements as a condition of employment
- Optional controls include screen monitoring, watermarked documents, and role-based access restrictions
- Applicable privacy legislation in your home jurisdiction should be reviewed before transferring personal data offshore
How Much Felcorp Manages Is Up to You
Every Pod Engagement is different and that is by design.
Felcorp can provide the full suite of business administration services that underpin your pod: HR management, compliance, reporting, quality assurance, training, job allocation, and more.
Or you can take full control of those functions yourself, with Felcorp providing the infrastructure, staff and operational base.
Most clients land somewhere in between and that position evolves over time as the pod matures with less engagement by Felcorp as time goes on.
We work with you to identify the right service configuration from the outset, and adjust it as your needs change. Our role is to guide you towards what works not to lock you into a fixed model.
