- Captive service
Captive Service is a portion of
Business Process Outsourcing where an organization will use a wholy ownedsubsidiary instead of a Third Party Vendor. The benefit of doing such an arrangement would be to leverage the cost savings of using offshore resources, while mantaining complete control over process and delivery. The costs of such an arrangement are generally higher than using a vendor [OutsourceNews, "Business Process Outsourcing – Captive service or third party vendors?" http://www.customerfocusservices.com/www/Outsourcenews.com/Articles/captive_bpo_and_third_party_bpo.html] .Recent News
Captive Service Units have been in the media lately because of large financial firms tied to the
Subprime mortgage crisis . Many of the firms had captive service units and as they file for bankruptcy, these units are being sold seperately. Specifically,Lehman Brothers ,Citigroup ,AIG andMerrill Lynch all have captive units that are being considered or have already been sold off [The Economic Times, "Genpact joins race for Lehman's captive unit in India" "http://economictimes.indiatimes.com/News_by_Industry/Genpact_joins_race_for_Lehmans_unit/articleshow/3510640.cms] [VCCircle.com, "TCS Acquires Citigroup's Captive BPO For $505 Million" http://www.vccircle.com/500/news/tcs-acquires-citigroups-captive-bpo-for-505-million] [The Economic Times, "BPO captives of Lehman, Merrill, AIG have nervous day"http://economictimes.indiatimes.com/Markets/Analysis/BPO_captives_of_Lehman_Merrill_AIG_have_nervous_day/rssarticleshow/3486662.cms] .Notes
Wikimedia Foundation. 2010.
