Captive vs Outsource BPO | Apex service solution
In this video we will discuss the difference between captive vs outsourcing BPO. Offshoring is no longer a niche service that only well-established businesses can afford. Instead of being limited to large-scale organizations, captive centers, and outsourcing models are increasingly being adopted by mid-level organizations as well. Smaller businesses are realizing the utility captive and outsourcing services bring to the table, not only in terms of reducing back-office costs but also in elevating the level of productivity and performance in the enterprise. But the question arises, which one is better?
Captive centers are, essentially, global centers that are set up by businesses in overseas markets. Any business that opens up Captive centers abroad, exercises complete control over the management and administration of the center. The business sets its own quality standards for the captive centers and generally adopts an approach that ensures the lowest possible operational costs. Usually, a business only invests in Captive centers, if it has a long-term objective of establishing itself and growing in a particular geographic location.
BPO outsourcing simply involves the hiring of other B2B businesses/third-party service providers, on a contractual basis, and the delegation of certain operational responsibilities and functions to them. In the case of BPO outsourcing, the hired BPO service provider would be responsible for managing operations in a particular location.
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