| Assessing the Role of Captive Operations |
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Summary:
Offshore outsourcing is moving beyond point-to-point outsourcing (e.g., from the West to India) toward multi-point, multi-provider global delivery models. Services are simultaneously climbing the value chain from transaction to more strategic, knowledge-based processes (e.g., R&D, fi nancial analysis, marketing, market research). In response, many buyers are seeking to establish offshore captive operations, while others are divesting their captive centers, and still others are leveraging theirs to support partnerships with third-party outsourcing service providers. Most buyers will require a combination of service delivery options, from internal distributed delivery to domestic shared services, offshore captive operations, and third-party outsourcing, to achieve their performance, productivity and cost-reduction objectives. This Perspective presents the pros and cons of captives, a pulse-check on captive center performance, and strategies to generate maximum value from business process outsourcing (BPO) and knowledge process outsourcing (KPO).
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