ANILESH SETH’S OFFSHORE CAPTIVE EVALUATION CHARTwww.slideshare.net/anileshwww.captivesinindia.blogspot.comDOES A CAPTIVE M...
The matter in these slides represents my views based upon myexperiences and inputs I have received from several folks I ha...
Is a captive a good strategy forme? As a first step, it’s a good idea to answer the  following questions:    Do we have ...
Clear articulation of objectives   So does talking about cost-savings make sense?       Of course. This is one of the co...
The cost angle Isn’t it cheaper to outsource to a vendor?    Could be. But this isn’t about competing with a     vendor....
Leadership commitment This needs to be from the very top. There can  be no compromises. Without this, this strategy  is a...
Commitment to having a top levelexec drive the strategy? This too is crucial. The person does not need to  be identified ...
Does the company have matureglobal engagement practices?   This may not be the case on day 1. There however needs    to b...
What does my going-in positionlook like?PLOT YOUR STATUS ON AN OFFSHORE CAPTIVE EVALUATION CHART. Example forCompany Z:   ...
Shouldn’t attrition levels in India bea criteria? A good people strategy sits at the heart of a  successful captive Howe...
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Does a captive make sense for my organization

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There is a lot of "press" out there that talks about the pros and cons of captives in India. There is one view point that captives are unnecessary, and yet another that captives are a much better bet than outsourcing to a third party. As always, value lies in the eyes of the beholder and this ppt provides an evaluation framework for someone wanting to make a decision

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Does a captive make sense for my organization

  1. 1. ANILESH SETH’S OFFSHORE CAPTIVE EVALUATION CHARTwww.slideshare.net/anileshwww.captivesinindia.blogspot.comDOES A CAPTIVE MAKESENSE FOR MYORGANIZATION?
  2. 2. The matter in these slides represents my views based upon myexperiences and inputs I have received from several folks I havebeen in touch with over the years.I assume no responsibility for the success or failure of any outcomefor anyone adapting or adopting anything I have mentioned herein.Take your own risks and your own decisions.That being said, I am licensing the use of these slides as acreative commons license. You can use these with no obligation – just besure to insert your appreciation on my blogwww.captivesinindia.blogspot.com andshare your work as per the Creative CommonsLicense at www.creativecommons.org/licenses/by-sa/3.0/
  3. 3. Is a captive a good strategy forme? As a first step, it’s a good idea to answer the following questions:  Do we have clearly articulated objectives (this includes a prima facie business case)  Is there leadership commitment from the top to make this happen?  Is the organization committed to charging a top level executive to drive the strategy  Does the company have mature global engagement practices?
  4. 4. Clear articulation of objectives So does talking about cost-savings make sense?  Of course. This is one of the core foundations of the model What are other business objectives that make sense  Just cost-savings is not good enough. There needs to be a solid business case that could be derived from:  The need to keep strategic/IP related work inhouse  To drive better productivity and responsiveness from vendors, from an “on- the-ground” strategy….to transition them to being partners in the true sense  To gain access to young talent  To get access to talent with the latest skills  To drive process improvement in the parent organization  To ensure high speed 24*7 response to business needs, at lower costs  To build specific competency centers at lower costs  To build a global brand  As a precursor to entering the Indian market  etc
  5. 5. The cost angle Isn’t it cheaper to outsource to a vendor?  Could be. But this isn’t about competing with a vendor. It is about an overall strategy where the vendor is a part of the eco system
  6. 6. Leadership commitment This needs to be from the very top. There can be no compromises. Without this, this strategy is a non-starter or will burn out This needs to be articulated at the Board level too and must form part of the overall strategic review of the organization
  7. 7. Commitment to having a top levelexec drive the strategy? This too is crucial. The person does not need to be identified on day 1, but without this person championing the offshore cause, the offshore entity will flounder to gain traction and commitment from the business leaders
  8. 8. Does the company have matureglobal engagement practices? This may not be the case on day 1. There however needs to be a commitment to rapidly transition to that point This is crucial when you consider the socio-cultural impact that an offshoring strategy can cause Additionally the non-existence of this brings up potential conflict where the company may have had past vendor relationships that are “comfortable” Finally, global roles could be performed out of India itself. Example: global customer support function
  9. 9. What does my going-in positionlook like?PLOT YOUR STATUS ON AN OFFSHORE CAPTIVE EVALUATION CHART. Example forCompany Z: It is not important to have every objective This is non- nailed down negotiable. completely on Either it exists day 1. But a or it doesn’t broad business case needs to be This too is non- A low level articulated, and negotiable. If the simply means additions can be commitment is changes need to made as the unsure, don’t be made. But offshore entity proceed this is crucial matures and needs to be considered
  10. 10. Shouldn’t attrition levels in India bea criteria? A good people strategy sits at the heart of a successful captive However attrition is not a criteria for taking a decision to enter India (at least not today) There are several innovative and outstanding HR practices in place that minimize attrition and even use it as an opportunity to generate fresh talent and thinking
  11. 11. Thank you

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