A captive unit is a business unit of company functioning offshore as an entity of its own while retaining the work and close operational tie ups within the parent company.Captive unit is one way of establishing presence in cheap labour markets such as China and India rather than outsourcing work to third party companies established offshore. [http://www.interactyve.com/knowledgecenter/captivesetup.htm]
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Captive service — is a portion of Business Process Outsourcing where an organization will use a wholy owned subsidiary instead of a Third Party Vendor. The benefit of doing such an arrangement would be to leverage the cost savings of using offshore resources,… … Wikipedia
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