Relocation of operations

The pressure to reduce operational costs as well as taxes have lead to outsourcing and offshoring of primary business processes like logistics and manufacturing, alongside IT and back-office operations. However, actually realising the anticipated benefits is often a challenge because of operational and tax complications. We have assisted organisations in improving manufacturing asset utilisation by 5-25%, and achieved corporate tax savings of up to 40%.

Balancing risks and opportunities

Cost reduction and a wider scope of technical and production capabilities are the most common reasons for outsourcing and offshoring. By relocating operations to a tax efficient jurisdiction, the inherent operational benefits can be even further optimised. On the downside, factors like relatively high staff turnover, insufficient training, lack of knowledge or limited commitment can have an unforeseen impact on the final result. Also taxation on deemed disposals of goodwill/profit capacity, the denial of cost deductions and foreign indirect tax obligations are frequently not taken into consideration in time in the decision making process.

We can support businesses during the entire offshoring cycle: from exploring the opportunities and balancing out the risks and opportunities to actual implementation at the chosen location.