Until now, companies sending some of their IT operations offshore have generally followed two broad paths - they have either outsourced to a third party services provider overseas, or launched their own ‘captive centre’ at the offshore destination.
A captive centre is a company’s wholly-owned facility for software development, IT support, back-office data processing, call centre operations, or business process outsourcing. In this model, the activities are performed offshore, but are not outsourced to another company.
India, so far, has proved to be the most popular destination for such centres. For though North American companies have set up captive centres in China, Central Europe, and other parts of the world, India offers several advantages.