Thursday, May 6, 2021

The Captive Model for Offshoring Is Thriving, Says Research Firm

CIO: In recent years, several large firms have shut down their wholly-owned offshore IT and business process centers, leading some observers to predict that the captive model for offshoring was on the decline. However, a new report from Everest Group finds that the reverse is actually true. The researchers reported that in 2010, 10 new captives opened and 13 expanded, while only two closed down.

Eric Simonson, Everest Group’s managing director, says the model is likely to continue to thrive for two reasons: “First, it is a large part of the market, representing about 25 percent of delivery within India. Second, the model is different from third-party models and that is not widely understood. A captive can not only deliver the typical services of a [third-party] service provider, but also many other services which are just part of the normal business. In effect, a [captive center] is a corporate campus which happens to be based offshore.”

Similar articles

Latest Articles

What is Raw Data?

By itself, raw data doesn’t look like much or mean much, but it has the potential to be processed for analysis.  Processed data comes from...

What is Data Analysis?

Everything measurable that has happened, is happening, and will happen in a business can be boiled down to data. But not all data is...

IBM Begins Cloud Confidentiality...

IBM has positioned its cloud offering against the unique security, compliance and confidentiality needs of specific vertical markets with a sharp focus on finance...

Top Big Data Certifications...

The term Big Data reflects a very real growing trend. By 2020, every human will be generating an astounding 1.7 MB per second. That...