Offshore Outsourcing Links: Business Models | Resources

Joint Ventures

In some instances, suppliers may consider working with the customer to establish a joint venture subsidiary. Some examples include:

  • Call centres servicing the owner's requirements and being expanded to take on other companies' requirements
  • Development companies completing work for the owner and projects for other companies.

The key advantages of a joint venture are the reduction in capital outlay and associated reduction in risks.

Joint Ventures may be optionally 'graduated'; that is to say, the partners may agree a sliding scale of ownership over time, such that the one partner may decide to buy the other out against a pre-agreed set of milestones.

Top of page

Points To Consider

  • Is the company prepared to share management and control?
  • Exit / buyout strategy
  • Investment required
  • Split of legal responsibilities.

Top of page Previous: Captive Subsidiary Next: Introduction




Outsourcing Books

These offshore outsourcing books provide a detailed insight into the successful planning, establishment, maintaining and conducting business and projects offshore.