Offshore Captive Center
Captive Offshore Definition
The Captive Offshore Model
- Augmentation Model
This model is suitable for companies that constantly update their products and do so in large numbers. It is also suitable for those organizations that perform the work of standard system integration. This is a T&M arrangement, that is, time and materials arrangement.
- Ex-pat Model
This model has all that a captive center has to offer but has lighter technology than typical centers that are involved in captive offshoring. Senior leaders in Information Technology are placed at these centers. These leaders can be placed at the centers either as a temporary arrangement or a permanent one.
Captive +1 Model
In this model, the training and recruitment, as well as other activities, are done at the vendor’s end. These activities are performed at the captive offshore sites. The offshore data centers of both the vendor and the captive center are mirror images of one another. This model gives a level of autonomy for the management. Captive +1 model is particularly applicable for companies whose end product is software and these captive centers can act as the location for software testing and development activities.
Noncore Model
This model stands right in between the captive +1 model and the ex-pat model. The placement of leaders in Information Technology is borrowed from the ex-pat model and these leaders look after the work done by vendor offshore data centers and the captive centers. This provides the organization with the opportunity to perform certain tasks at the captive centers. These are tasks that are to be shielded away from the competitors. Whereas, the rest of the tasks are accomplished by the offshore data centers.
These models broaden the captive offshore definition, in that they offer a variety of exploration possibilities to companies considering to opt for an offshore captive center. An organization can also choose to inter-mix and find the right combination among these models that suit their requirements.
Captive Offshoring vs Offshore Outsourcing
Whereas, when it comes to offshore outsourcing, the procedure typically involves a third-party vendor looking after a certain part of the production or development of products or services. These are guided by obligations that are implied by a drawn contract between the company and the vendor.
Thus, those companies that have proprietary software and are involved in competitive development usually choose captive offshoring over offshore outsourcing because of thisensures that there is no involvement of a third-party in the process of development. But, it is typical that an organization has both captive offshore centers as well as outsourced centers to accomplish different parts of the production processes.
Conclusion
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