Many back-office processes such as finance and accounting, human resources and procurement, although not core to your business, are critical. In some cases, the future leadership of a company comes from these fertile grounds. Companies looking to decide outsourcing versus establishing their own captive model must carefully consider these important people considerations. Personnel in a captive are your employees and will perform as such. The outsourcing providers’ employees work for the provider.
The choice between outsourcing and building a captive centre comes down to internal bias, scale, capital availability, patience and talent retention. KKIPL offers both options offer world-class cost structures.
Companies looking to explore either option should remember to be patient in either cases can partner for our external help and keep in mind that change management will be a critical success factor for either path.
In the sourcing context, a “captive” facility is a wholly owned entity that provides services principally to a parent organization or its affiliates and is located in a separate country or region. The term is commonly used today to differentiate between outsourced, off shored processing and off shoring in a service centre that is owned by the company to which it provides services. The management of the captive, together with the vast majority of workers, will be employees of the parent company. Captives are used for IT outsourcing (ITO) services, business process outsourcing (BPO) and, increasingly, the provision of high-value knowledge process” outsourcing (KPO) that require a degree of specialized domain expertise.