Set up your own Captive Center

During last fifteen years, ITO and BPO was a means to achieve cost efficiencies in IT and transaction intensive back office business processes. Organizations used to outsource non-core activities to partners who had built a core competency in that area. This resulted in both tangible benefits like reduction in cost, and intangible benefits such as focusing on more "strategic" issues. However, now the market is evolving Global Shared Service Centers. Companies have seen a tremendous success in IT, BPO, R&D, Engineering, Call Center and Product Development and are now on a lookout for bigger work pieces that can be offshored while continuing to exercise greater control. These companies have greater appetite to experiment offshoring of their critical processes and client-facing work on a permanent basis to either their fully owned facility or with a rent-your-captive-center facility.

Captive Center is now emerging as a key management tool, the focus of which is expanding beyond the "non-core areas", giving an organization flexibility to achieve a certain set of tactical and strategic goals while retaining an absolute control on the offshore work. Doing this offers them advantages of cost, speed to market, competitive capabilities, stimulus for growth and both the time and space to focus on their own core competencies while managing risks stemming from a third-party involvement.

A leading international airline company, which carries out multiple back office functions from India, has scaled up its operations to over 1,500 people and is said to be saving close to US$30m per year in staff costs over and above the approved productivity levels. AMEX's center in India provides payable and reconciliation services to all its businesses globally. A leading financial services company has scaled up to 12,000 employees and provides the gamut of services from data entry to helpdesk support. It is the quality of personnel, combined with the cost effectiveness of operations that is leading to a migration of key processes to India. Growing at more than 35 percent over the past three years, Captive Centers is the fastest growing segment of the overall offshore market while adding about 38 Captives in India every year. While labor arbitrage has been a key driver for this growth, other factors such as access to talent, service quality, productivity, and time-to-market have gained more importance.

We offer companies an end-to-end help in setting up Captive Centers in their choice of location.

• Captive Center Strategy and Vision
• Research (Talent, Infrastructure, Financial, Overall)
• Engagement Model (ODC, Own Set Up, Vendor Driven, BOT)
• Business Case , Projected RoI
• Supplier Selection
• Site Visits
• Location Research, Analysis and Selection
• Cost Computation and Cost Models
• Services to be offshored (IT, R&D, Product Development, BPO, KPO, Engineering, etc)
• Transition Management
• Risk Management
• Execution and Roll out

We also help small to mid-size companies with needs of about 25-50 seats explore the Captive Center model.