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Cochlear's Successful Foreign Expansion with Mercans' End-to-End Outsourcing Support
Cochlear is a medical device company that designs, manufactures, and supplies the Nucleus cochlear implant, the Hybrid electro-acoustic implant and the Baha bone conduction implant.
At a glance
Client detailsCochlear
Region supported by MercansSaudi Arabia
Targeted staff5,000
Mercans’ roleManaged Services
IndustryHealthcare
Previous ProviderNone
Mercans' servicesComplete HR and Finance Outsourcing Solution
Background
Cochlear, a large enterprise in the medical device industry, was setting up its office in Saudi Arabia. As a greenfield experience, Cochlear required a full stack of services, including HR management, PEO, payroll outsourcing, back office setup, etc. services. Setting up a new office in a foreign country can be a complex and challenging process, especially for large enterprises. Thus, Cochlear reached out to Mercans for our expertise.
Scratch
End to End Business Services
Client’s challenges
Incorporation of a regional headquarter entity:Incorporating a regional headquarter entity is a complex process that requires compliance with various local regulations and laws. Cochlear faced the challenge of setting up a regional headquarter entity in Saudi Arabia while complying with local laws and regulations.
Registration with tax authorities:Cochlear needed to register with tax authorities in Saudi Arabia to comply with local tax regulations. This required a detailed understanding of local tax laws and regulations, which can be challenging for a new entrant in the market.
Block visas:Cochlear needed to secure block visas for its employees to work in Saudi Arabia. The process of obtaining block visas can be time-consuming and complex, requiring coordination with multiple stakeholders.
End-to-end back-office outsourcing solution:Cochlear did not have any existing infrastructure, employees, or processes in place in Saudi Arabia. Therefore, it needed an end-to-end back-office outsourcing solution to manage its HR, payroll, and accounting functions. This required finding a provider with the necessary expertise and experience in setting up offices in Saudi Arabia.
Incorporation of a regional headquarter entity:Incorporating a regional headquarter entity is a complex process that requires compliance with various local regulations and laws. Cochlear faced the challenge of setting up a regional headquarter entity in Saudi Arabia while complying with local laws and regulations.
Registration with tax authorities:Cochlear needed to register with tax authorities in Saudi Arabia to comply with local tax regulations. This required a detailed understanding of local tax laws and regulations, which can be challenging for a new entrant in the market.
Block visas:Cochlear needed to secure block visas for its employees to work in Saudi Arabia. The process of obtaining block visas can be time-consuming and complex, requiring coordination with multiple stakeholders.
End-to-end back-office outsourcing solution:Cochlear did not have any existing infrastructure, employees, or processes in place in Saudi Arabia. Therefore, it needed an end-to-end back-office outsourcing solution to manage its HR, payroll, and accounting functions. This required finding a provider with the necessary expertise and experience in setting up offices in Saudi Arabia.
Overall, Cochlear needed a greenfield experience and faced several challenges in setting up its office in Saudi Arabia, including incorporation of a regional headquarter entity, registration with tax authorities, obtaining block visas, and finding an end-to-end back-office outsourcing solution.
Mercans’ Approach
Mercans adopted a proactive approach to meet Cochlear’s challenges by incorporating its regional headquarter entity, which enabled Cochlear to easily navigate the complex process of registration with tax authorities and other local compliance requirements. Mercans’ unique and extensive experience in greenfield setup, combined with its in-depth knowledge of local laws and regulations, allowed it to provide Cochlear with a customized solution tailored to its specific needs.
Mercans’ end-to-end back-office outsourcing solution offered a comprehensive suite of services, including
- HR management
- Payroll outsourcing
- Online expense reporting
- Employee lifecycle management
- Accounting
- Management reporting
- Financial reporting
The solution was integrated with Oracle Netsuite, providing Cochlear with a single platform to manage all its back-office functions.
As one of the first providers in Saudi Arabia to offer such services, Mercans was able to provide Cochlear with a painless journey in setting up its office. Mercans’ experienced team provided guidance and support throughout the entire process, enabling Cochlear to focus on its core business operations.
By outsourcing its back-office functions to Mercans, Cochlear was able to streamline its operations, reduce costs, and increase efficiency, allowing it to achieve its business goals faster and more effectively.
Mercans’ solution
- Mercans provided an integrated solution for Cochlear by integrating multiple platforms, such as Netsuite and Oracle.
- The solution included end-to-end local compliance, which offered support for Arabic invoices and other communications to ensure compliance with local regulations.
- Mercans’ employees ensured that Cochlear received its payments on time in their bank account, ensuring a seamless financial process.
- Cochlear experienced significant cost savings due to Mercans’ solution, as it reduced the need for multiple vendors and provided an all-in-one solution.
- Mercans’ solution enabled Cochlear’s procurement team to manage fewer vendors, reducing their workload and increasing efficiency.
Business Benefits
Effortless business setup Cochlear’s decision to partner with Mercans for their back-office outsourcing needs proved to be a smart move, as the benefits they reaped were significant. The most notable benefit was the ease and painlessness of setting up an office in Saudi Arabia. Cochlear was able to navigate the complex process smoothly and focus on their core business operations.
No fines and penaltyMoreover, Mercans’ solution provided Cochlear with crucial support for local compliance requirements, which can be challenging for companies new to the Saudi Arabian market. With Mercans’ knowledge of local regulations and laws, Cochlear was able to avoid costly penalties and fines resulting from non-compliance.
Everything in a single platform Another significant advantage of Mercans’ solution was that Cochlear was able to manage its HR, payroll, and accounting functions on a single platform. This consolidation reduced the need for multiple vendors, leading to significant cost savings for the company. Cochlear was able to streamline their back-office operations and devote more resources to growing their business and achieving their strategic goals.
Ready infrastructure with physical presence Finally, Mercans’ global presence provided Cochlear with all the necessary infrastructure and local presence required for the office. Cochlear did not have to worry about establishing a physical presence in the country, as Mercans had all the necessary resources in place. By relying on Mercans for their back-office needs, Cochlear was able to take advantage of their global expertise and local knowledge, ensuring that their business operations in Saudi Arabia were a resounding success.
Tangible client impact
Conclusion
Mercans’ end-to-end back-office outsourcing solution for Cochlear’s office in Saudi Arabia provided an integrated solution for all of Cochlear’s needs. Mercans incorporated Cochlear’s regional headquarter entity and provided support for local compliance requirements, resulting in significant cost savings for Cochlear. Mercans’ solution was painless for Cochlear’s procurement team, enabling it to manage fewer vendors.
Mercans’ unique ability to provide a complete greenfield experience, including setting up new offices and its global presence, sets it apart from other service providers and makes it one of the few capable of delivering such a comprehensive solution.
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