Archive for the ‘Indian Sourcing office Cost Heads’ Category

Indian Sourcing office Cost Heads

Thursday, March 25th, 2010

 

Major cost-heads while setting up a sourcing office in India

  1. Recruitments of right individuals
  2. Office space & setup
  3. Salaries & incentives
  4. Audits

Further classified as below:

FIXED:

  1. Office setup (furniture, lighting, decoration, computers, laptops etc)
  2. Legal formalities (company registrations)
  3. Taxes
  4. Misc
  5. Insurances – (premises, vehicles)
  6. Office Vehicles
  7. Generators for alternative power (optional)
  8. Advertisements – to here professionals

FLOATING

  1. Property Rental – 30%
  2. Travel Expenses – 10% (also includes office vehicle petrol & other travel expenses)
  3. Skilled Professionals – 40%
  4. Utilities – 15%
    1. Electricity
    2. Water
    3. Telecom
  5. Misc – 2%
  1. Company accounting & charted accountants – 3%

The above cost is excluding any payments to NGO’S, 3rd party inspection agencies, surveys etc.