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Building
Office, Operating & Transfer
Who
The client is a global IT enterprise that provides hardware,
software, and technical services to clients around the world.
What
The client decided to expand in China rapidly. However, they
did not have enough time and internal resources available to
build out an office in Shanghai in the required timeframe. More
importantly, the executive team felt that they did not have
the necessary experience in China to handle all the regulatory
hurdles and paperwork required.
Solution
After BizSmooth analyzed the situation, a BOT strategy was developed:
The client outsourced the building out of the office to BizSmooth,
including ongoing maintenance operation until the client decided
to take over the operation on a pre-determined schedule. All
expense in building out the office and operation was undertaken
by BizSmooth with the client amortize the expense in 24 months.
All layout and PDS was implemented according to the client’s
requirements. The building out period was divided into several
milestones, and progression towards the next milestone was not
executed until the client accepted and approved the current
milestone. BizSmooth also handled all the legal and regulatory
work for the office construction.
Benefits
Utilizing BOT, the client was able to:
 Avoided
costly initial capital outlay by amortizing the expense over
the life of the contract
Build out
the office on time and under budget
Not waste
time learning about the logistics of establishing an office
in China to remain focused on conducting their core business
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