Large companies pioneered offshoring to leverage the cost benefits of a global workforce. It is now an integral part of their business operations. These companies first experimented with the offshore development center (ODC) model offered by large vendors, then shifted critical delivery and processes into captive centers. They achieved better control, risk management, and tighter cultural integration.
Unfortunately, mid-sized companies find themselves at a disadvantage when it comes to setting up their own offshore captive. The demands for management bandwidth, capital investments, the complexity of adhering to foreign regulations and the reduced scale of smaller operations are factors discouraging such a step.
ThoughtFocus’ Hybrid Captive offering is an innovative business model for offshoring that allows mid-sized companies to gain the same cost advantages, as those enjoyed by large companies without sacrificing control and transparency. It also enables companies to build offshore capacity as a long term business asset of the company without the risk of losing it with the end of a vendor contract.
ThoughtFocus’ Hybrid Captive model enables mid-size companies to gain control, manage risk and approach offshore technology and business process delivery as a long-term asset without taking on the risks and liabilities of a captive setup.
The structure eliminates the misalignment existing within client and vendor relationships. It addresses issues including artificial attrition, lack of transparency, profit margin management, cultural misalignment, control, employee loyalties, and security and business continuity risks. It provides you control and transparency.
When building your offshore capacity as a Center of Excellence (CoE), ThoughtFocus leverages its experience and expertise with the traditional model. We underwrite the administrative and governance risks, take on the task of setting up operations by extending our own operational engine while letting you focus on one goal, i.e. quickly driving value addition from an offshore team. While we manage operations, you are in control of the culture, security practices, personnel, and compensation. ThoughtFocus recommends and implements everything with your approval. There is 100% transparency. The operation is run as an independent business unit within ThoughtFocus that leverages our scale and experience in global operations.
Blackstone was one of the early adopters of the hybrid captive model. Their offshore Center of Excellence (CoE) has seen immense success within Blackstone. It started servicing technology, and then very quickly scaled to a number of other back office functions. In just three years, the capacity has more than quadrupled.
Hear Bill Murphy, Blackstone’s CTO thoughts on this.