A great enabling team will keep the engineering team productive. This’d be mostly the IT, Finance/payroll, Legal, HR and Administration/facilities. Depending on the nature of the work, Finance/payroll and Legal activities can be outsourced. IT support could come from the parent company itself and it might suffice to have one IT support engineer locally. Payroll administration is a critical function, but there are lot of vendors that’d take care of running the payroll and the required filings. Similarly, finance and legal consultancy and filings could also be outsourced easily. At the initial stages of the company it doesn’t make sense to hire people for these. However hiring the HR staff and Administrative staff cannot be postponed – these should be hired simultaneously along with the seed team, but definitely once the Site Leader is hired, allowing the Site Leader to pick his/her team. Again, a good Site Leader should be able to tap the network to get these people quickly. Best practice is to start with the HR and the Admin leaders and then have them hire for sub-functions (Talent acquisition for example). Key decisions of this phase include:
- Identifying the level of outsourcing for enabling functions and finding the right vendors for the same.
- Deciding how IT will be handled – what will be supported from the parent org and what will be done locally.
- How expenses of initial few weeks (while the bank accounts, signatories and other registration activities are still going on) would be handled.
Good to know:
- For the first year or so, it is better to go with a single vendor who could offer these services – Accounting, Taxation, Payroll, MIS, Local Law compliance and Company Secretarial services. This’d reduce the overhead of working with several vendors and allow to focus more on getting the engineering team up and running.
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