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.