Let your business cover the globe.
GEO STRATEGY
VersaSync’s Geo Strategy service is your ticket to expanding your business globally. Our experts have global knowledge having worked in a variety of international locations, we specialize in helping you navigate international markets, identifying the best growth opportunities, and ensuring you make the most of them. With our guidance, you’ll confidently step into new territories and unlock the full potential of your business on a global scale. Whether you’re looking for a “right-shoring” location to expand, gain better cost leverage, cater to more languages from one location or to create a BCP location, with a plethora of potential strategies, we’ve got you covered.
Our expertise shines in key locations worldwide, including the USA, LATAM (Colombia and Jamaica), Philippines, India, South Africa, and the Middle East. We offer advisory services and on-the-ground support for various business initiatives, ranging from launching greenfield operations to identifying and executing BOT (Build Operate Transfer) models or acquisitions.
This is where Versasync’s consulting and advisory services could be leveraged, as we have the knowledge of how to navigate the markets mentioned above. A greenfield launch of a new location for a company involves significant planning, investment, and execution to establish a successful operational presence in a new geographic area. Unlike expanding existing facilities or acquiring established ones, a greenfield launch entails constructing or establishing all necessary infrastructure, buildings, and operational systems from the ground up.
Build
Operate
Transfer
In the first phase, the company (typically a local established entity in the BPO space) builds the necessary infrastructure and establishes the operational setup for the new location. This involves constructing buildings, installing equipment, setting up IT systems, hiring and training staff, and putting in place all the resources needed for the location to commence operations.
Once the infrastructure is in place, the company operates the new location according to its business objectives and strategies. During this phase, the company manages day-to-day operations, delivers products or services, handles customer relations, and ensures the location runs smoothly and efficiently.
After a predefined period or milestone is reached, typically a few years into the operation, the ownership and management of the new location are transferred from the company to a designated entity. This entity could be a local partner, a joint venture, or a separate subsidiary of the company. The transfer phase often involves a negotiated agreement outlining the terms of the handover, including financial arrangements, asset transfer, and operational responsibilities.
Build Operate Transfer
The BOT (Build-Operate-Transfer) model is a popular framework used in various industries, including BPO/BPM and sometimes in corporate expansions of captive units, including launching new locations for a company. Here’s how the BOT model can be applied in the context of launching a new location:
01Build
In the first phase, the company (typically a local established entity in the BPO space) builds the necessary infrastructure and establishes the operational setup for the new location. This involves constructing buildings, installing equipment, setting up IT systems, hiring and training staff, and putting in place all the resources needed for the location to commence operations.
02Operate
Once the infrastructure is in place, the company operates the new location according to its business objectives and strategies. During this phase, the company manages day-to-day operations, delivers products or services, handles customer relations, and ensures the location runs smoothly and efficiently.
03Transfer
After a predefined period or milestone is reached, typically a few years into the operation, the ownership and management of the new location are transferred from the company to a designated entity. This entity could be a local partner, a joint venture, or a separate subsidiary of the company. The transfer phase often involves a negotiated agreement outlining the terms of the handover, including financial arrangements, asset transfer, and operational responsibilities.
Build Operate Transfer Model
The BOT model provides a structured approach for companies to launch new locations, enabling them to efficiently build and operate facilities while managing risk and optimizing resources. Launching a new location offers several advantages:
01Risk Management
By outsourcing the construction and initial operation phases to a specialized partner or consortium, the company can effectively mitigate some of the risks associated with entering a new market or geographic location. This includes risks such as regulatory compliance, market unfamiliarity, and construction delays, as the partner can navigate these challenges with their expertise and resources, reducing the burden on the company.
02Leveraging Expertise
Leveraging the expertise of partners or contractors in building and operating facilities goes beyond mere efficiency it ensures a comprehensive understanding of local regulations, cultural nuances, and operational intricacies. This access to specialized knowledge facilitates not only the successful setup and management of the new location but also helps in navigating potential obstacles and optimizing performance over time.
03Financial Flexibility
The BOT model offers financial flexibility by allowing the company to spread out the financial investment over time. Payments for construction and operation are often structured in installments or tied to specific milestones, enabling the company to manage cash flow effectively and allocate resources strategically while minimizing upfront financial risks.
03Core Competencies
Outsourcing the construction and initial operation phases enables the company to concentrate on its core competencies and strategic objectives. By entrusting specialized tasks to external partners, the company can redirect internal resources towards innovation, product development, customer service, and other areas crucial for long-term growth and competitiveness. This focus fosters agility and adaptability, empowering the company to respond swiftly to market changes and opportunities while maintaining operational excellence.
Mergers & Acquisitions
When considering expansion into a new location, an attractive strategy to explore is mergers and acquisitions (M&A). This entails the purchase of an established business or its assets within the desired geographic area. By adopting this approach, we can leverage several advantages, such as gaining immediate access to the local market, inheriting an existing customer base, and potentially acquiring valuable intellectual property or technology. Here’s how the acquisition mode works:
Identifying Target
Due Diligence
Negotiation and Valuation
Legal & Regulatory
Integration
Post-Acquisition
VersaSync would identify a suitable business or assets in the desired location that align with the partners strategic objectives. This could include acquiring a competitor, a complementary business, or assets such as real estate, infrastructure, or intellectual property.
Before proceeding with the acquisition, Versasync would aid in the thorough due diligence to assess the financial health, legal compliance, operational efficiency, market position, and potential risks of the target business or assets. This process helps the partner make informed decisions and negotiate terms that maximize value and mitigate risks. Typically big firms will be engaged to do the due diligence but Versasync would be involved in the process as well to ensure continuity and transparency.
Based on the due diligence findings, the partner enters into negotiations with the target to agree on the terms of the acquisition, including the purchase price, payment structure, asset allocation, warranties, and any conditions or contingencies. Valuation methods such as discounted cash flow analysis, comparable company analysis, or asset-based valuation may be employed to determine a fair price. This area is one where VersaSync would be observers but directly involved from both a compliance point of view and conflict of interest.
Once the terms are agreed upon, the acquisition undergoes legal and regulatory scrutiny. This may involve obtaining approvals from government authorities, regulatory bodies, industry regulators, or shareholders, depending on the nature of the acquisition and the jurisdictions involved. This is another area where VersaSync would be observers but directly involved from both a compliance point of view and conflict of interest.
After the acquisition is completed, the company focuses on integrating the acquired business or assets into its existing operations. This includes aligning processes, systems, culture, and resources to realize synergies, enhance efficiencies, and maximize the value of the acquisition. Integration efforts may involve restructuring, rebranding, consolidating operations, or implementing new strategies to optimize performance. Versasync could provide services in this phase BUT typically the acquiring company will bring in their own teams to do this.
Following integration, the company actively manages the acquired business or assets to ensure long-term success and value creation. This involves monitoring performance, addressing challenges, capitalizing on growth opportunities, and adapting to changes in the market or regulatory environment. Versasync could provide services in this phase BUT typically the acquiring company will bring in their own teams to do this.