Build Your Own Offshore Operations: Partnering with MYCPE ONE vs DIY (Do It Yourself)

Many of the top 1000 accounting firms are now setting up their own offshore operations in India and the Philippines. For firms that have reached a certain scale, this approach can be more suitable as they look to build long-term offshore capabilities. At the same time, we have been working closely with many of the top 100 accounting firms, helping them navigate this transition. Once your offshore team grown beyond a certain size—let’s say five people—you reach a point where you need to scale. 

At this stage, you’re faced with two options. The first is doing it on your own by setting up and managing your own offshore operations. The second is continuing with offshoring but in a more structured way, possibly under a managed model where you only pay for the actual staff salary along with necessary inclusions while we handle everything else—legalities, compliance, payroll, and administration. Many firms at this stage struggle with deciding which path to take, and that’s exactly what we’ll break down in this blog. 

To make an informed choice, it’s important to look at the key differences between managing offshore operations independently versus leveraging a structured offshoring model. We’ll analyze these differences across various parameters such as cost, employment structures, compliance, and operational efficiency. One major aspect firms often consider is whether they should transition to a managed fees model, where they retain greater control over their staff while shifting administrative and compliance burdens to us. 

This not only simplifies the process but also allows for a smoother transition if, at any point, they want to move towards an Employer on Record (EOR) model—a setup where a third party legally employs staff on their behalf while they maintain day-to-day operational control. 

In this blog, we will break it all down: the cost implications of DIY vs. offshoring, the employment models available, and what firms experience when they decide to scale. Both approaches come with their own advantages and challenges, and we’ll explore them in detail so you can make the best decision for your firm. Whether you’re considering keeping everything in-house or shifting to a model where staffing, payroll, and compliance are fully managed for you, this guide will give you a clear roadmap. 

Key Considerations

When deciding between building offshore operations through a Do it Yourself (DIY) approach or opting for a managed fees model, it’s crucial to weigh the benefits and challenges of each approach. Here’s a comparison of key factors to help you determine which option best suits your firm’s unique needs and long-term objectives. 

• To understand what truly sets MYCPE ONE apart, we’ve broken it down across key areas like learning & development, talent management, client support, data security, etc. 
• We’ve covered it all in detail in this blog: What Sets MYCPE ONE Apart from the competition? - take a look.

Cost Comparison 

When comparing the costs of running offshore operations, it’s important to look at the differences between the Captive model and the DIY approach. The offshoring model helps companies cut costs by using economies of scale, reducing overhead, and keeping attrition low through our broader network and access to talent in various regions. On the other hand, DIY often leads to higher costs because of limited reach, more overhead, and higher turnover, especially when setting up in metro areas. 

Let’s break this down with a simple example: what would the costs look like for a 50- member offshore team using both Offshoring – Large Teams and DIY? The table below highlights the key cost differences between both models. 

*Why we can source talent at competitive cost as compared to DIY

We source talent at competitive costs through strategic geographical diversification. Expanding into Tier 2 and Tier 3 cities gives us access to skilled professionals at lower wage expectations than metro areas, enabling us to provide high-quality expertise cost effectively. In contrast, DIY setups typically expand to only a few metro locations, where competition is higher and costs rise, limiting the cost efficiency we achieve through our broad regional reach.

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• Now that we’ve explored the key differences between going DIY and partnering with MYCPE ONE, let’s talk about what makes our approach unique. We’ve developed a Managed Fees Model purpose-built for CPA and accounting firms looking to build offshore teams without taking on legal or compliance burdens—while still retaining full control over their staff. In this model, you pay actual staff salaries plus a management fee, and we take care of everything else. Let’s dive into what it includes, why it works, and how it helps you scale with confidence.

Managed Fees Model: What and Why? 

What is the Managed Fees Model 

The Managed Fees Model is a straightforward and practical way to manage offshore teams, especially as your team grows. Instead of paying a fixed hourly rate, you pay the actual salaries of your offshore staff along with a management fee.  

This management fee takes care of all the necessary support your team needs to operate smoothly, including HR services, payroll processing, IT support, legal compliance, and infrastructure setup. 

This model lets you focus on managing your team’s daily work and building a strong team culture while leaving the backend tasks to us. It’s designed to remove the administrative burden from your plate, making it easier to run your operations efficiently as your team size increases. Whether it’s handling employee onboarding, ensuring secure IT systems, or managing workplace requirements, we’ve got it covered, so you can concentrate on achieving your organisational goals. 

What’s Included?

The management fee covers a wide range of services that simplify operations for you. These include: 

• Recruitment Services: Sourcing, hiring, and onboarding of offshore staff. 

• Human Resources Management: Managing Human resources and related functions 

• Payroll and Labor Compliance: Payroll, compliance with labor laws, employee benefits administration etc. 

• IT Services: Providing the necessary IT infrastructure, secure systems, and communication tools. 

• Data Security: Ensuring data security measures and compliance with data privacy regulations. 

• Learning and Development: Providing training and professional development for the Offshore staff. 

• Leadership Oversight: Access to the leadership team for ongoing supervision and operational alignment with the Client’s objectives. 

For a detailed list, check out the Detailed Inclusions. 

Why switch to this model?  

This model is built for firms looking for control, scalability, and flexibility while ensuring operational efficiency. Here’s why it works: 

1. Enhanced Team Integration 

This model lets you focus on managing your team’s daily work and building a strong team culture while leaving the backend tasks to us. It’s designed to remove the administrative burden from your plate, making it easier to run your operations efficiently as your team size increases. Whether it’s handling employee onboarding, ensuring secure IT systems, or managing workplace requirements, we’ve got it covered, so you can concentrate on achieving your organisational goals. 

• Operate your offshore team as if it’s part of your in-house team. 
• Customize HR Playbook, policies, and procedures to reflect your company’s values and needs. 
• Foster a team dynamic that feels cohesive and aligned with your organization. 

2. Flexibility in HR Decisions 

Take charge of critical decisions like: 

• Compensation structures 
• Promotions and bonuses 
• Retention strategies 

This hands-on approach ensures your offshore team aligns with your company’s goals and culture. 

3. Improved Retention 

When team members feel integrated and valued, they are more likely to stay. The Managed Fees Model creates an environment that prioritizes connection, loyalty, and job satisfaction. 

Employment Structuring

Employer Off The Record & Employer On The Record

Flexibility On Transition 

In both models, for the initial setup period, we act as the Employer Off Record (EOR). This allows you to transfer all legal, HR, and compliance responsibilities to us during the early stages of offshore operations. Importantly, in both the employer off record and employer on record models, you retain full control over managing your team’s day-to-day functions, including hiring, firing, performance management, and bonuses. 

The EOR model offers significant flexibility, allowing you to focus on building and integrating your offshore team without the burden of handling compliance and administrative tasks. You also retain the option to transition to being the employer on record (EONR) when you are ready to take over full legal and administrative responsibilities. 

Employer Off Record

Being the Employer Off Record (EOR) means that MYCPE ONE takes care of legal and administrative responsibilities, such as compliance with labour laws, employee contracts, and benefits. In this model, we handle the regulatory obligations on your behalf, allowing you to focus on managing day-to-day team operations, including hiring, firing, and performance management. You retain full control over your team while we manage the legal and compliance aspects. Below are the key pros and cons of this model. 

Pros of Being Employer Off-Record 

• No Compliance Burden : Being the employer off record allows you to transfer all compliance responsibilities, including tax filings, labour laws, and other legal obligations, to us. This relieves your internal teams from having to manage complex regulatory requirements, ensuring compliance without consuming resources or increasing risk. You can focus on core business operations while we handle compliance, claims, and litigation risk. 

• Tax-Optimized Salary Structures : As an employer off record, you benefit from tax-optimized salary structures that increase employee take-home pay while reducing the overall cost for the company. This ensures better retention and allows you to remain competitive in the job market without incurring additional payroll expenses. This advantage is especially relevant for senior roles, where tax efficiency significantly impacts compensation. 

• Full Control Over Hiring and Firing : Even though we act as the employer off record, you retain 100% control over all aspects of your team, including hiring, firing, bonuses, and appraisals. This ensures that your firm’s policies and culture are preserved, and your leadership remains fully in charge of key team decisions. This control is retained while we handle administrative and legal tasks. 

• Quick Scaling and Access to Talent : With us as the employer off record, you gain immediate access to our established network of over 200,000 pre-vetted professionals across 19 cities in India and the Philippines. Our recruitment team ensures you can scale rapidly without the complexities of managing recruitment processes yourself. 

Cons of Remaining Employer Off Record 

• Perceived Lack of Employer Identity : Although you maintain full control over team management—such as hiring, firing, and performance decisions—employees may still associate certain administrative aspects of their employment, like contracts and compliance, with us as their legal employer. This could lead to a subtle distinction in how they perceive their connection to your brand, potentially making it feel less direct. However, strong communication and integration efforts can help bridge this gap and ensure employees feel fully aligned with your company’s culture and values. 

• Dependency on Us for Compliance : Remaining in the employer off record status means continued reliance on us for managing compliance and HR functions. While this helps ease your operational workload, it places these responsibilities under our management rather than being handled internally 

Employer On Record 

Being the Employer On Record (EONR) means your organization assumes full legal and administrative responsibility for all aspects of employment, including payroll, benefits, compliance with labour laws, and employee contracts. In this model, you handle all regulatory obligations directly, while maintaining full control over team management and decision-making. Below are the key pros and cons of taking on this role. 

Pros of Being Employer On Record 

• Direct Accountability for Employment Decisions : As the employer on record, you take on direct accountability for managing all aspects of employment, including payroll, benefits, and compliance. While you already have control over hiring, firing, and day-to-day team management in an employer off record model, being the employer on record allows you to personally oversee administrative tasks like compliance and payroll processing, giving you more insight into these areas. 

• Enhanced Employer Branding : Being the direct legal employer can strengthen the connection between your company and offshore employees, fostering a deeper sense of loyalty and alignment with your brand. This may lead to improved engagement and long-term retention as employees feel a closer attachment to your firm.

Cons of Being Employer On Record 

• Limited Flexibility in Termination : This closer connection can also create challenges when managing terminations. In the employer on record model, if an employee is let go, they have no alternative options within your company, which can result in a more rigid and difficult termination process. In contrast, with us as the employer off record, we can place terminated employees with other clients, offering a smoother transition for both parties. 

• High Compliance and Legal Burden : Managing compliance with local labour laws, employee contracts, and other regulatory requirements can become complex, particularly when dealing with offshore markets. As the employer on record, the full responsibility for compliance lies with you, potentially increasing legal risks and operational costs. We can appoint a local director to help manage these compliances, but you will still need to handle all related tasks internally with the assistance of our director. 

• Higher Operational Costs : Establishing your own offshore entity requires substantial investment in infrastructure, HR systems, and office space. These upfront and ongoing costs add to your operational expenses, making it a less cost-efficient choice compared to the employer off record model, where these costs are managed by us. 

• Time-Consuming HR and Admin Functions : As the employer on record, all HR functions such as payroll, benefits administration, and compliance management must be handled in-house, which can take away time and resources from your core business activities. In contrast, an employer off record model allows you to focus on strategic tasks while outsourcing these operational responsibilities. 

Conclusion 

Deciding between setting up your own offshore operations (DIY) or partnering with MYCPE ONE depends on your firm’s long-term goals, resource availability, and risk appetite. While a DIY approach offers complete ownership, it comes with higher operational costs, compliance challenges, and a significant investment of time and effort. On the other hand, a structured offshoring model allows firms to scale quickly, leverage an established talent network, and reduce legal and administrative burdens while still retaining full control over their team’s day-to-day operations. 

For firms looking for a flexible approach, the Employer Off Record (EOR) model provides the benefits of outsourcing compliance and payroll while maintaining operational control. As firms grow, they have the option to transition into the Employer On Record (EONR) model, assuming full responsibility for legal and administrative functions. This transition can be strategically planned based on the firm’s readiness and need for deeper employer branding. 

Ultimately, the right choice depends on what aligns best with your firm’s scalability, compliance management, and cost-efficiency needs. If your goal is to build a high-performing offshore team with minimal administrative hassle and maximum flexibility, MYCPE ONE provides the expertise, infrastructure, and leadership support needed to make offshoring a seamless experience. Whether you’re exploring offshoring for the first time or looking to optimize an existing offshore setup, our solutions can help you scale with confidence while maintaining operational efficiency  

About the Author

Shawn Parikh

Co-Founder & CEO

Shawn Parikh is the CEO and Co-Founder of MYCPE ONE. A Chartered Accountant by qualification, he has over 15 years of experience of being a problem solver for small to mid-size firms and over time he has given consultation to thousands of CPAs, accountants and tax pros. Shawn has always been a big believer and advocate of social enterprises and small accounting firms & businesses. He consults and speaks on several topics ranging from Building Remote Team - Remote Working, Offshore Staffing, strategic planning, Scalability of Accounting Practice, cloud accounting, practice management, LinkedIn marketing, etc.