Industries · Technology & Emerging

Outsourcing and shared services

Outsourcing and shared-service centres in Nepal usually serve a foreign parent or client. Intercompany pricing, the reporting package the parent needs and the cost per seat decide whether the operation is worth expanding.

The questions that decide the numbers

What a outsourcing and shared services business needs answered.

  1. 01Is the intercompany price defensible under transfer pricing rules?
  2. 02What does a seat cost, fully loaded?
  3. 03Does the monthly reporting meet the parent's standard?
  4. 04How are foreign receipts and repatriation handled?

Across technology & emerging

Revenue that is recognised over time rather than on delivery, costs that are almost entirely people, and often a foreign parent or customer that brings transfer pricing and repatriation into scope. For subsidiaries and outsourcing operations, the recurring issues are intercompany pricing that can be defended, and the reporting package the parent needs on its own basis. Growth is rarely the problem. Proving margin on each contract usually is.

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