Lot of medium and large enterprises are interested in realizing offshore benefits without going through the outsourcing way. Reasons for this move could be strategic, business or simply, protection of intellectual property. Solution to these requirements can be a dedicated captive center, virtual captive or a blended delivery model. However building and ramping up captive centers at offshore location is easier said than done.
Typical questions companies ask before deciding to start a Captive:
- What are my strategic imperatives to start a captive centre at an offshore location. Is it Financial, IP protection, patents, confidentiality or to create value by divesting the operations in the future.
- Should I directly set up a captive or go the BOT way? What are the legal, fiscal, taxes and HR laws implications which I need to take care?
- Which city at offshore location is right choice for me? How will we hire people and start it up?
Typical challenges Leadership faces in starting a new captive are:
- Lack of local understanding, leading to expensive mistake in early stages.
- No or minimal leadership presence at offshore location, causing delayed and expensive ramp-up
- Delivering non-core activities from captive centers leading to inflated cost structure with no business benefits.
- Lack of brand visibility causing hiring challenges, retention issues and expensive talent acquisition.
Our senior consulting workforce have decades of experience in setting up and managing large size IT operations. We can help our client’s in following ways:
Program Management: We can manage the captive setup program on client’s behalf and provide support on activities like setting up hard & soft infrastructure, hiring, transition and stabilizing operations.
Build Operate Transfer: We can setup captives on the client’s behalf in Build Operate and Transfer model.
Virtual Captives: If clients want to start slow with minimum overheads and long term liabilities, we can help them setting up virtual captives with large IT service providers.