Arctern RemoteHire® vs Traditional Project Based

We dont pre-staff skilled resources with our model like other offshoring companies with a project based business model. The idea is for us to bring on skilled resources (team/project leaders/members) across different practice areas as per our customers requirements who are best suited for a defined role. While this could potentially take a few weeks longer to get started, the benefit is that our customers are not stuck with the limitations of an existing team/resource. Companies where resources are already on board, periodically run into bench time causing their rates to be unnecessarily inflated. For the long-term, we believe it is better to build a custom team with specific expertise that we desire and get the benefit of a materially lower rate.

Our entire business model is pioneered around the concept of RemoteHire® - what we mean by this is that the Arctern employee in India is sort of a joint employee right from the beginning where we are jointly responsible for both the recruitment and productivity of the employee. We try to focus on the HR, Admin, Infrastructure, & Finance aspects of the employees day-to-day operational role, while our customers focus on the functional. We believe that this hybrid model comes closest to giving the customer the best of both worlds - an employee and a contractor. This manner of division of responsibility allows us to charge the rates we do for the respective services, including infrastructure & benefits. In fact, typically, to gain the benefits associated with contractors, one has to pay a lot more than an employee, whereas, in our model, it is actually less, yet you have the benefits of flexibility/shared responsibility that comes with a contractor. It is designed to provide our customers with a high level of attention and the right balance of management control, quality output, and substantial cost benefits. Please find the table below.

We also designed this model to minimize the typical finger pointing associated in a project oriented contractor model where potentially the customer may complain about inefficiencies/quality deliverables/missed deadlines and the contractor typically complains about project scope/unexpected changes, improper training/transition management, budget overruns, etc.

  Arctern RemoteHire® Traditional Project Based
Engagement Type More like an extension of your office, benefits similar to having your own employees More like a 3rd-party vendor/sub-contractor relationship
Resource Pool Custom build your team with specific skillset - high customer involvement in recruitment/termination Limited to existing employee/team of sub-contractor, generally no involvement in employee/team recruitment/termination
Management Control Higher level of control, direct interaction, and ongoing involvement with team Lower level of control, direct interaction, and ongoing involvement with team
Costs Lower costs, as the team is custom built-to-order leading to no bench time for employees Higher costs to cover periodic bench-times of existing team between projects
Schedule Flexibility to have multiple shifts when building the team Usually limited to the existing office hours of the sub-contractor
Project Management Customer involved in both specifications creation and deliverables Usually restricted to customer writing functional specifications and handing over deliverables to vendor
Intellectual Property Generally always owned by customer by default Usually negotiated between customer and vendor
Scope Ability to expand relationship into multiple practice areas ranging from R&D, sales/marketing, tech support/customer service, web design, accounting, etc. Generally limited to the existing one or two practice areas offered by vendor
Applicable to For long-term, full-time company job positions (core or non-core functions) For short-term, usually non-core company functions