A Subsidiary is a company controlled by a holding company in another region. Because it has complementary operations of the parent company, as the ideal nearby extension for innovation, testing & developing new delivery practices with more agility and competitive costs.
A Subsidiary as a Service is a framework for your operation which has a similar approach as a Software as a Service (Saas) Model:
A Subsidiary as a Service has the added advantage that is a safer path when entering a new geography, as Everscale minimizes potential risks & liabilities of the region.
Everscale enables a unique framework for a strategic Subsidiary with full capabilities, which includes a scalable local operation team with industry savvy executives for GTM strategies. It can add delivery teams with different engagement models.
Figure 1. Comparison between different models available in the market.
Today’s trends in M&A, reflect that companies are seeking to be more innovative and responsive to customer needs, but they need to stay agile. The challenge is how to add new business practices to realize these objectives under frameworks that work best for each industry.
The whitepaper "Grow beyond standard business models – An Alternative on M&A" examines the use of alternatives to enter a new market and adding business capabilities for growth. It uses a current example of a company operating in this new niche, born in the heart of the digital transformation economy.
The Industry of Enterprise Application Service Firms is one of the first using this business model, as the access to a new geography plays a big role not just for a new revenue stream but to gain a competitive edge by updating their delivery models (Nearshore/Offshore) and adding talent pools.
This type of companies, like the SAP Partners, need to maintain an agile operating model that can scale as needed in size, capabilities and geography.
Everscale Group is the leader in Subsidiary as a Service in this particular Industry. Their customers are SAP Partners & Solution Providers looking to add a new scalable operation in Mexico for US Delivery or to enter Latin America via Mexico as a new Go To Market.
For more information and success stories on Everscale:
“Today’s most successful companies are able to leverage business model scalability to achieve profitable growth. Executives need to factor scalability attributes into their business model design or they risk being left behind.”
MIT Sloan Review – December 2017
“Eighty-one percent of executives expect to manage multiple operating models in parallel in the future, and 75 percent acknowledge that digital operating models must be flexible, dynamic and customer centered”.
Accenture Agile Operating Model for the digital age – 2017
“We can expect M&A in the future to look very similar to M&A in the past, deal makers will pursue a strategy of alliances, joint ventures, and partnerships that can come together temporarily or permanently to create value."
Harvard Business Review on Why Traditional M&A Is Becoming Less Important – May 2018
"Traditional competitive advantages of size are now turned against the bigger companies. Now, small, unscaled companies can successfully challenge large companies that are weighed down by decades of investment in scale, using platforms & assets."
MIT Sloan Management Review – March 2018
"A digital platform, or a digital solution, may enable a new epoch of transformative growth, but when you get under a company’s hood and look to see what’s really driving it, the engine of transformation turns out to be its business model."
HBR on Digital Growth Depends More on Business Models than Technology - December 2018
“By 2018 over 65% of top partners will have changed their GTM model to better find and serve targeted customers.”
IDC Directions – 2017
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