Скачать или смотреть In-House vs Third-Party Outsourced Work: Pros and Cons Revealed

Keeping hands-on control of outsourcing has advantages, but the flexibility of using trusted third parties will likely yield better results for most businesses.

Across the world, from Mumbai to Manilla, North American firms have set up remote outposts of their outsourced operations, employing local staff directly and managing them from head office.

It’s called the “captive” model of outsourcing and has yielded impressive results for some businesses who, for various reasons, are keen to play a hands-on role in managing the work they pay to have done offshore.

They may have set up a software development house, business process outsourcing division, or call center, realizing labor cost savings enjoyed in various offshore locations while managing people precisely the way they want to. This, hopefully, results in higher-quality products or services that fit their customers’ needs.

Keeping hands-on control of outsourcing has its advantages, but the flexibility of using trusted third parties is likely to yield better results for most businesses.

BPO: The Mainstay of Captive Outsourcing

For years, captive outsourcing was the domain of big corporations like GE, Sony, JP Morgan, Target, and British Airways. They set up their captive divisions in India and elsewhere, sometimes employing thousands of employees at large campuses and even competing for talent with established local outsourcing companies.

Initially, these captive organizations focused on large-scale business process outsourcing (BPO). But as the model has matured, higher-value operations like research and development, advanced manufacturing, specialized software development, and even marketing have been given captive treatment.

At Accelerance, we’ve studied the captive outsourcing market closely and even worked with companies deploying the model.

The Approach Has Three Key Benefits:

Protection of intellectual property: Many technology companies have captive operations overseas to tap engineering skills in another part of the world and closely control the intellectual property they use and create offshore. The threat of data breaches, industrial espionage, and IP theft is reduced when you work with your people, operate within the perimeter of your network, and follow your policies and practices to the letter.
Ultimate control: Many businesses are known for having exacting standards and a particular way of doing things. In a captive situation, you can apply the company’s ethos and operational template to an offshore operation, ensuring uniformity across borders.
Long-term cost savings: While the initial setup costs with captive arrangements are high, over time, with effective management, captive centers can generate savings, especially at scale. You can become a significant employer in a region, attracting support through tax incentives, cheap real estate, and grants or investments from governments. For Fortune 500 companies with ongoing requirements for service delivery, captive outsourcing has the potential to be a cost-effective option.

Read the whole blog: https://www.accelerance.com/blog/capt...