Virtual Captive Unit

Virtual Captive Unit

A Virtual Captive Unit (VCU) is a type of business engagement model between a customer that wishes to setup an R&D center in an offshore site and an offshore provider, who is committed to provide the customer with full control and transparency related to all operation-incurred costs including accounting, salaries, procurement, administration, legal and other business aspects.

The offshore provider builds the R&D center to fully comply with the customer’s guidelines and with full alignment to its development methodologies and processes as well as team structure and corporate culture.

The software development center is built either within the provider’s existing facilities, taking advantage of fast ramp up, full administrative

support framework including legal, accounting, procurement, HR, IT services, security, etc., or build it from scratch for the client at a designated site. The engagement between the offshore software provider and the customer is based on a cost plus base fee. The customer pays a fixed markup on top of the employees’ wages and bears all related overhead costs in a transparent model.

The customer is usually in charge of the professional management of the team and has control over salaries and bonuses while the offshore provider undertakes the responsibility of the administrative, HR, financial and legal management of the facility and team including the handling with the offshore authorities.

Virtual captive diagram

The Ignite Edge

As a leading offshore provider Ignite transforms software development into an efficient, reliable and predictable process, resulting in top quality software solutions that are consistently spot–on: on-time, on-budget and on-target.

In the VCU model, Ignite provides not only dedicated resources, leased facilities, infrastructure and assets, but also conducts services such as recruitment, professional training and ongoing management of facilities, infrastructure as well as finances.
This is highly significant when a company wishes to launch a branch in

the Ukraine as it mitigates all potential risks and lengthy bureaucratic procedures. As an established company in the Ukraine, Ignite recruits the brightest local R&D talents. Ignite constantly conducts professional trainings and conferences which feature advanced software methodologies (such as Agile and Scrum). These help reinforce Ignite’s solid reputation in the Ukrainian IT arena. Since the IT market in the Ukraine is highly head-hunting driven, Ignite’s reputation as an employer and its exceptional pool of professionals make the difference. A company which is just entering this market will find it hard to match this level of professionalism.