Many variables dictate whether captive offshore shared services operations are a preferred alternative to internal domestic shared service centers or third-party outsourcing, according to EquaTerra. Captive centers are buyer owned and maintained, and growing at double-digit rates. The whitepaper presents the pros and cons of captives, a pulse-check on captive center performance, and strategies to generate maximum value from BPO and KPO (knowledge process outsourcing). Free whitepaper.
The paper, entitled, “Assessing the Role of Captive Operations in Global Services Delivery Models”, stated that G2000 organizations must assess a broad range of factors, including operating costs, attrition rates, and economies of scale, as well as industry-specific factors and the competitive landscape, when evaluating their captive center operations. Failure to adequately account for these factors frequently results in an under-performing captive center that becomes a catch-all for non-essential work sent piecemeal by managers with short-lived interest in using the center. Further, operating without a strategic goal, captive centers fail to cultivate a culture of continuous improvement which not only negates their value to the corporation but may also cause significant and costly operational challenges.
