Everyone knows that offshoring is viable. But there's no consensus on how best to take a business process out of country.
One of the questions my colleagues and I frequently encounter is: Are more companies offshoring to a company-controlled unit or outsourcing entirely to a third-party provider?
My colleague Alan Hanson, a leader in our financial services practice, reveals what he's learned from the past several years of research on this front: When all is said and done, companies these days seem to prefer operating their own captive centers offshore.
Why?
The pat answer is that companies build captive operations to harvest the low-hanging fruit of easy cost savings, then later move to outsourcing once the new operations are stable.
