Seat Leasing seems to be this almighty key that unlocks any global business’ potential. And while this may sound ridiculous at first glance, the truth is, it solves many logistical and cost-related issues. Not enough lead time from planning to launch? Need a skilled Customer? Hiring skilled frontliners in a snap?
Seat leasing is most likely your solution.
Driven by globalization and cost-cutting pressures, the business process outsourcing (BPO) sector has undergone explosive expansion throughout the last two decades. Among the many operational models that have surfaced, seat leasing has become somewhat well-known for providing companies with an affordable and flexible means of starting activities on offshore sites.
Seat Leasing 101
By renting office space, equipment, and facilities from a third-party supplier instead of making investments in their own setup, seat leasing lets businesses (startups, small firms, and international corporations wishing to rapidly enter a new market without the overhead expenses of opening an independent office) operate locally or internationally within a few weeks to a few months.
Despite these clear advantages, many wary managers opt out! They do concede to seat leasing being a sensible fix. But they are weighed down by concerns that are quite valid. The bigger concerns are listed below.
1. Hidden Charges and Unreliable Services
Although seat leasing is presented as a reasonably priced solution, many managers have faced hidden expenditures via administrative expenses, maintenance fees, and technology upgrading costs. Service dependability may also be an issue; poor office facilities, antiquated gear, and unreliable internet access all influence productivity.
2. Lack of Control and Security Risks
A few weeks into the seat leasing relationship, the business finds that it actually has minimal influence over the provider’s operating policies or infrastructure. Particularly for companies managing private client information, this lack of management creates security concerns. In certain cases, inadequate security in seat-leased surroundings resulted in data leaks and legal infractions.
3. Limited Customizing and Branding
Usually, companies leasing seats have little influence on their workplace. There are few branding possibilities, hence companies have to run a generic office that does not fit their company image. Lack of personalization could affect corporate culture and staff morale.
4. Questionable Rule Compliance
Many BPO operations—especially those involving financial, healthcare, or personal data—have to follow tight rules such as GDPR (General Data Protection Regulation), HIPAA (Health Insurance Portability and Accountability Act), or PCI DSS (Payment Card Industry Data Security Standard). Providers of seat leasing could not always satisfy these strict compliance criteria, hence companies run legal risks and suffer reputation harm.
5. Possibility of Vendor Lock-In
Changing providers or opening an independent office may be expensive and time-consuming after a business begins activities in a seat leasing facility. Providers might apply limits, which would make it difficult for companies to move free from significant fines or operational interruptions.
6. Work Environment Issues and Employee Attraction
Many times, BPO staff members say job satisfaction is mostly related with working circumstances. In seat-leased settings, the supplier rather than the company controls the office conveniences and work culture. High attrition rates might result from bad working conditions, lack of leisure activities, and insufficient staff involvement programs.
With all these hidden “dangers” why even use Seat Leasing as a business model?
Why risk life and limb if this would entail lost opportunities, lawsuits, and poor accountability down the line?
… because it all depends on WHO you partner with.
With NEARSOL’s Seat Leasing, every relationship is a customized solution. Our options give you control, flexibility, guaranteed quality, and cost-efficiency.
Expect the usual:
- Strategically located properties for optimal access and visibility;
- Workspaces available on-demand for immediate start;
- Quick and easy implementation to fast-track your operations; and
- Administrative task efficiency to free up time and scale your business.
So what might have gone wrong with these companies?
They failed to do due diligence. It is most likely that their SLAs or their Service Level Agreements lacked clear anticipated performance, security policies, and departure provisions.
Another huge risk they failed to take into consideration is the provider’s capacity when it comes to cybersecurity. Many companies invest in security assessments outside their seat leasing provider’s services. This is a prudent move but not a necessary option IF your provider is equipped with the latest cybersecurity protocols.
Last but not least, these companies think of seat leasing as a temporary fix while a long-term, self-managed facility is in progress. Thus, they scrimp on essential options that their business needs.
Seat leasing IS a long-term solution.
When you partner with the right service provider such as NEARSOL, you are ensured of a transparent relationship. You get what you agree upon. NO hidden charges, no lack of control or security risk.
While your team is managed offshore, the owner gets to influence their offshore workplace. NEARSOL’s work culture is high on adaptability. A generic office isn’t a solution for anyone! Thus, you can be assured that your workplace culture of customer excellence is maintained.
When it comes to rule compliance, trust NEARSOL to have the know-how. Seat Leasing isn’t a template. It is a simple solution for the business owner, but a tall order for the seat leasing partner. NEARSOL knows this by heart. We operate with a team of legal professionals and compliance offers to ensure that your business is compliant with both local and international requirements.
Seat leasing has great benefits in terms of cost savings and flexibility but without transparency, it is also a huge risk to take. Before signing a seat leasing contract, businesses have to thoroughly consider their alternatives and examine the hazards. Understanding the hidden dangers and acting early on helps companies make wise choices supporting operational success and sustainable development.
Mitigate these risks.
NEARSOL is a US-based BPO and service company that offers clients custom-design solutions. With major hubs in Manila and Iloilo, it began operations in 2011 and has since gained a strong presence in the Latin American regions, the Caribbean, and the Asia Pacific, winning many awards for quality and service along the way. Most recent of which is its Great Place to Work-Certified™ Recognition, a global accreditation that tells stakeholders what employees think of the company culture.
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