Virtual Captives (Un)defined…
Over the course of this year, considerable buzz was generated in the global sourcing world over the concept of a “virtual captive.” With the efficacy of this concept as the subject of debate in various forums, we thought it would be useful to explore this potential trend further.
The term “virtual captive” is broadly used to refer to a new global sourcing model that aims to blend the benefits of both the captive offshoring and third-party outsourcing models. This hybrid model typically entails a buyer entering into an operational alliance with a supplier, wherein the supplier provides the assets, IT infrastructure and allied services such as recruitment and training in addition to dedicated resources to service the buyer. The buyer retains an element of control over the process and technology along with the senior management, thus enabling a captive-like environment.
