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Home > Business > PTI > Report

Captive BPOs perform well in India

October 04, 2007 18:05 IST

Majority of MNCs which have offshore operations in India believe their captives are delivering well on cost savings and service expectations, contrary to the belief that these units are turning into loss-making bodies for the parent firms.

Over 85 per cent of these multinational companies that own offshore operations in India believe their captives are performing well, a recent survey shows.

The Everest Research Institute Survey polled 102 key executives from global companies, representing both parent and captive stakeholders, with offshore operations in India across a wide range of industry verticals, including hi-tech, banking and telecom.

The majority of captives being able to meet performance criteria is an incremental step for the future of captives business models, Everest Research Institute Vice President of Global Sourcing Nikhil Rajpal said.

Pursuant to this performance captives now have an opportunity to elevate their roles and provide additional value for the company, Rajpal added.

Rather than just acting as an offshore unit rendering the outsourced work, these foreign-based units should create a value addition from the parent company, the survey titled 'Captive Value Diagnostic Study Market Update' said.

Parent stakeholders must work with captives to establish value priorities and to evolve their capabilities, thereby reducing existing disconnects, the Everest Research said.

However, even in the present scenario the parent stakeholders provide support to captives to step up their efforts and deliver beyond cost savings thus creating a multitude of growth opportunities, the study added.

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