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Home --> Product Engineering --> Captive Partnering     Suggestions/Comments   

Captive Partnering

Over the last decade or so, hundreds of technology companies set up their own (Captive) offshore centers for Product development and product management related activities. Many companies established captives out of a desire to have close control over offshore R&D operations and thought they could do it better themselves.

But all is not well. While some large technology companies derived sizeable benefits, small and mid size companies have run into headwinds from their captive units. No wonder, there is a significant decrease in the number of new captives that are being introduced.

Why Small Captive Units are Hurting?

Lack of Scale: It has now become common knowledge that certain scale and size are critical for captives to be successful. Market analysts concluded that captives for sizes less than 500 would not be advisable, considering resources and management time demanded by captives.

Poor development process: Many captives underestimate operational, process-wise and managerial investments needed to make global deliver an efficient operation. Small captives lack will or resources to make long-term investments in these areas.

Cost escalation: Small captives tend to see steep cost escalation, primarily on account of difficulties in resource optimization. Initially to attract top talent, small captives often pay well above market compensation and have difficulty sustaining it down the road. And, most small captives initially tend to underestimate costs for infrastructure and general administration.

Higher attrition: Small captives tend to have greater challenges in retaining employees as compared to Outsourcing PE service providers, as the later can provide varied global opportunities.

Lack of sustained senior management attention: Many a time, small captive units are started by a top engineer, who may not be adept at organization building. Further, top management usually do not show sustained motivation to stay engaged when the captives remain smaller.



Solution?? Hand it over to Advent Global

Not really an outrageous idea. On the contrary, a very wise one. This will allow you to focus on what you do best, while we manage offshore operations which we do best. We will make it successful for you by instituting a painless and hassle-free transition and hand-over process. Advent Global takes over the management and operations of the captive center, including its employees.

The client works with Advent Global in an outsourced partnership. We bring in our Product Engineering expertise as well as rapid ramp-up capability to help the captive center scale up rapidly as well as drive efficiencies through enhanced process rigor and productivity, and consolidation of infrastructure and facilities.

It sure beats closing down your captive!










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