Steps in Achieving this

There are two phases in this process. They are -

• Setup Phase
• Operations Phase

The following are the steps in the Setup phase -

1.	The Client informs SPA of its intention to get SPA to start a dedicated ODC for it in India.
2.	SPA designates its personnel for the interaction.
3.	The personnel meets with the Client and firm up the requirement, along with a growth strategy for 12 months.
4.	The SPA personnel return to Bangalore, and work out the costs for setting up, sustaining and managing the operations for the first 12 months.
5.	These costs are discussed with the Client, to find the best balance of cost vs. requirement, and the requirement is finalized in the form of a Requirements Document. This document will also contain Timelines for the setup and addition of various tasks, so that the ODC can reflect the working of the Client division that is doing the Outsourcing.
6.	The Client then gives SPA the go ahead to begin working on the setup.
7.	The Client has the option of designating one of its managers to come to India as Country Head of this ODC, to work with SPA to setup and run this ODC.
8.	SPA, then incorporates the new company. This involves many complex steps, and registering of the company with several Government and Quasi-Government bodies. These can take 3-4 months to do, and need considerable expertise and prior Know-how in order to avoid pitfalls that can cause a problem in the proper functioning of the company in future. The Government and Quasi-Government bodies to deal with include -
	Registrar of Companies Central Sales Tax bodies State Sales Tax bodies Central Excise authorities Software Technology Parks of India Nasscom and more…
9.	SPA will also in parallel identify the right premises where the company can be based and operated from keeping in mind the infrastructure specified in the Requirements Document.
10.	SPA identifies the right people within its team to work on ODC, and the remaining are identified as per the Requirements Document.
11.	The infrastructure is put in place as per the Timeline and the ODC is made fully operational.

The following are the steps in the Operations Phase -

1.	Handle the registration related activities of the company, such as -
	Sales tax related work - We will need to keep filing all invoice related papers to the Sales Tax Departments. Customs and Excise related work - As a lot of work in the area will need hardware to be shipped in and out of India, the only way to avoid getting charged customs duty of hardware coming in for testing, would be to have a customs bonded warehouse. Software Technology Parks of India (STPI) related paperwork - STPI is the software regulatory body. All invoices that are raised by a software company in India need to be submitted to STPI. This is mandatory.
2.	Handle all administrative and Legal issues towards the running of the company.
3.	Handle all Human Resources issues such as -
	Staffing Expansion Payroll, Provident Fund, and ESI
4.	Handle all Technical Management issues.
5.	Regular progress reports to be made and presented to the Client Management.