Captive process in BPO

Captive process is a part of Business process Outsourcing (BPO), where a particular organization uses a wholly owned subsidiary instead of using the third part vendor.

Captive process is one of the pioneer of BPO in the country, seems to be learning a thing or two from its closest competitor. The third party BPO services vendor, albeit the hard way.

Captive BPO do have the following features

·        A specialized resource requirement for a long term objective

·        Growth predictability and retraction

·        Delivering core service using the remote resources

·        Business knowledge sensitivity

·        High levels of IP

·        Build specific domain knowledge

·        Retain specific domain knowledge

·        Preparedness for capital investment

And so on.

Employee absence and turnover is one of the biggest challenges facing the business process outsourcing (BPO), industry in India. Captive business process outsourcing. There were around 40 captives in the past.  The advantages of captives are Perceived better control, the management style and culture, security and flexibility and finally cost control. The advantages makes the organizations the Best BPO companies.

The cost of setting up captives is also set to go down as compared to third-party outsourcers as investment in real estate and employee costs were corrected due to global slowdown.

Captive centers can be one of providers for IT. BPO services or other areas of engineering design service for companies involved in manufacturing.  Captive centers can offer a practical compromise for companies looking to choose between outsourcing and establishing a captive center should conduct an internal bias.

Many captives face a lot of difficulties in establishing strong development process. Similar problems are faced while implementing productivity improvements. The outright ability to integrate rigorous procedures. All of the technological progression have direct impact of the productivity of a global operation.

The relocation of IT and business process services to India is driven by global mega trends that are leading to the creation of the flat world.

A captive needs both scale and growth to survive. Without scale, captives struggle to bring down or at the same time maintaining the level of cost. A question often arises among several where or in which town the captives are concentrated? The obvious answer is it is located in cities having the best available infrastructure, business environment and access to talent. These are placed in the cities of Bangalore, Delhi and some other Metropolitan cities and have made an impact as the bestBPO companies in the country.

At a time when MNCs did not have any sort of option but to set up their own captive outfits, the multiplication of the third party vendors offers a choice. Companies operating mainly in their own countries may not have the expertise or the confidence to set up captive in India.

At a time the captive BPO did made more progress than web consulting companies and made a viable business standards.

“Third party outsourcers have an advantage over captive as they have existing scale while captives would require hiring. But there has been a growth in captives as many companies would need to keep strategic process among themselves, however, the growth in the third party outsourced contracts has also increased at the same speed if not more” S Viswanathan, Chief Operating Officer (CEO), NIIT Smart Serve.

Thus it can be said that the captive BPO has much more prospect than other areas of IT like webconsulting companies and other branches like SEO and software development and so on.