The 7 Value Creation Levers for Private Equity and Portfolio Companies Outsourcing

Learn how Leading Private Equity firms and their PortCos use Aeries to overcome challenges related to talent, operations, technology, and value creation through outsourcing and offshoring solutions.

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As Value creation partners for Private Equity and Portfolio Companies, Aeries helps overcome the day-to-day challenges companies face with acquisitions and mergers, meeting TSA timelines, tuck in, standup or carveout, providing technology enabled professional services. Whether you need help with digital transformation solutions to migrate legacy business systems and applications, or simply outsourcing and offshoring, Aeries has solutions that can support your business growth, improve profits and efficiencies.

What's included in our ultimate guide?

Up-to 75% Lower Cost of Operations

Aeries scale of operations allows us to operate far cheaper than a captive international subsidiary or native US-based model. The pricing model is simple, clean, transparent and highly cost-efficient. Aeries charges a margin on direct cost (resource-related cost) and passes on all indirect costs (rental, utilities, etc.) to the customer on an actual basis.

Ensure Right-Fit Talent Hiring & Retention

Our talent scouting, and HR practices means you get access to employees who operate at the same standards you’d expect from a captive subsidiary. The nature of the Purpose Built Model ensures quality availability of talent with desired skillsets to ensure the client gets the right-fit hiring for their business. Aeries employs the best industry practices and use diversified sourcing channels to hire the right skill set, with the client's team active involvement to match the organization's needs. Aeries follows an effective and efficient screening process to narrow down the right candidates within tight timelines, which takes client feedback as well, especially for all senior positions.

Retain Functional & Operational Control

Aeries teams operate as an extension of client’s organizational chart, with direct management control of operations and dedicated delivery resources by client department heads. Aeries engagement model provides complete functional and operational control of the processes while avoiding the administrative and regulatory overheads. The Aeries team constantly engages with the client’s leadership with a partnership approach to align all functions and resources specific to the client’s requirements to build the operations as ‘one team.’

Flexible & Adaptive with Your Business

Aeries model is built to adapt to client needs, so you they can quickly scale up or scale down resources depending on your business situations and objectives, with no financial penalty. Aeries also provides a Build-Operate-Transfer (BOT) option to buy the dedicated operations from Aeries once it is set up and optimized, and the client is ready to take full control of the project and set up its own subsidiary. This provides the clients the ease of taking over operations that are already established and running efficiently, thus avoiding the initial hassles of setting up one's captive unit.

Retain Your Culture & Branding

We strongly believe that culture plays an important role in employees having a sense of belonging, and Aeries makes every effort to ensure that the resources hired for client teams under ‘Purpose-Built’ model act as a natural extension of their brands and gives us an advantage in the recruitment of highly engaged frontline teammates who produce better results. We create a One-Team culture by closely understanding and integrating Client’s HR practices and company culture, to ensure the employees build active affinity and recognition towards the client brand and corporate culture. This approach yields better synergies and collaboration in delivery and engagement, and ensures we have amongst the highest satisfaction and retention rates in the industry.

Management Bandwidth & Oversight

The Aeries engagement framework ensures a quick transition and ramp-up time for your business operations. Aeries provides high-quality supervision, administrative and operations support, functional upskilling in local geography together with strategic inputs relevant to client business through the Aeries Engagement Framework at varying levels. Aeries also plays an anchor role by taking up Senior position/s in client org on an interim basis when required. This helps fill in important positions when needed, especially during carveout or M&A, when Aeries senior management can step in and provide valuable expertise and direction. Aeries senior management interacts very closely with the client's senior management on strategic matters including organic and inorganic growth, business expansion opportunities.

Limit your Tax Liability

Owing to the nature of the Purpose-Built model, the entity in India set up as your extension limits your tax liability. The tax implication, compliance and risk related to assessment and scrutiny are managed by Aeries, ensuring there is no cash outflow. Also, many countries have strict guidelines on the right price to charge for inter-company services and at times, can become a long outstanding litigation matter. Aeries model overcomes this challenge and you can avoid transfer pricing, thus avoiding adverse impact due to cash outflow of tax, tax disputes, cash accumulation and dividend distribution tax.

Why the Aeries ‘Purpose-Built’ model

Outsourcing models cater to the differing requirements of organizations, and the most common ones are either working with a third-party vendor or establishing one’s captive subsidiary in a preferred location.

Each model has its pros and cons, and there has been a need to integrate the standalone shared captive service centers and third-party vendor models into a model that extends the advantages of both, moving away from silos by function and creating a single organization without any hassles of compliance, taxation and transfer pricing issues, time and effort to set-up infrastructure and control.

Aeries Purpose-built model is a next-generation service delivery model that as the name indicates, is tailored to client needs and augments the best of both the captive and vendor model.

Unique Features:

It operates as a Center of Excellence with a complete client service focus and replicates the headquarter setup andwhile extendings the organization chart globally, to quickly ramp up operations as a virtual extension of the teams in the desired location.
With 100% dedicated resources, complete functional and operational control rests with the client organization, with full flexibility to ramp-up/down, as per evolving business needs, leading to an effective and efficient expansion. This enables organizations to completely concentrate on their strategic focus and initiatives as their daily functions are managed through these Dedicated Delivery Centers
The dedicated centers ensure consistently high-quality output with cost optimization and control, while not having to worry about tax, regulatory and compliance issues.
The Aeries Talent Management team, Talent Acquisition team, Project Management team, Facility and Administration team and Aeries Ccore team, work in collaboration with clients to ensure the highest standards and performance that is expected of a captive subsidiary. Aeries Leadership team provides oversight & governance on the engagement.

Aeries has a great deal of experience supporting PortCo companies, covering the entire life cycle post acquisition, including Due Diligence for identification of synergy opportunities and the ability to deliver increased margins. Our Purpose-Built model ensures risk based execution with optimal treatment of resources, technology and processes, providing a proven non-traditional approach for boosting returns.

Our Clients

Aeries has been a strategic partner for us since 2015. We started with an engagement for Engineering and R&D across all of our product lines. Aeries displayed an exemplary understanding of the niche and critical nature of our business and we expanded the scope of our partnership to include IT support, business applications, customer support and most recently accounting and finance operations. Aeries brought the benefits of operating as a seamless extended arm of Stratus under their ‘purpose-built’ model. This has worked wonderfully for us. We are extremely happy with the collaboration and the quality of work from Aeries.

In a matter of 12 months, we expanded to 150+ resources provided by Aeries, across functions such as R&D, IT, F&A and Payroll Processing. Their dedicated delivery model has been the perfect solution for us to explore global operations, while maintaining close control & visibility on the quality of people hired, all from branded offices in India. The Aeries team has been a great value partner for us.

In 2021, we engaged Aeries to assist us with establishing a cross-functional ‘Center of Excellence (COE)’ for our Engineering, Product Management, IT, Client Services and Finance functions. In a matter of 9 months, Aeries helped us consolidate our global workforce from Eastern Europe and India with 160+ resources while also opening a new office location in Bangalore. As part of Aeries’ “purpose-built model” the team is working as a seamless extension of Alegeus with unified processes governing quality & customer satisfaction. Aeries has demonstrated that it’s truly a trusted partner in setting up & managing global delivery operations. Our partnership is working extremely well, and I’m sure we will see greater success as we move forward.

Aeries has been a strong pillar of support for our carveout by quickly taking over the finance and accounts operations including setting up a new accounting system. This allowed us to be operational with our new entity in matter of weeks. Aeries is functioning as an integral part of our Security Services team and has made our transition to an outsourced Finance function seamless. The key to successful outsourcing is picking the right partner and Aeries has been an excellent partner! With a solution-oriented approach, Aeries also provided support for IT, Security, and business applications proving their cross functional capabilities. Aeries team is doing an excellent job for us!