Gartner: BI Spending Grows 13.4 Percent in 2010

Ann All

Though most areas of the offshoring market continue to grow -- some quite strongly -- there is one notable exception.

 

According to a Forrester Research report cited in a recent CIO Insight story, American and European firms are scaling back on captive centers -- the wholly owned facilities that house offshore business operations -- and will continue to do so over the next few years.

 

A big reason for the declining interest in captives is their cost. Forrester found that monthly costs of a captive operation were $4,944, vs.$4,231 for a third-party services provider. Companies are alsoincreasingly confident in the abilities of offshore providers to handle sophisticated tasks, says the president of a software company that shuttered its captive in Bangalore.

 

Some big U.S.-based companies are making big bucks by selling their captives. GE scored $500 million when it did so in 2004, not an insignificant boost to the bottom line.

 

Compliance-driven sectors such as financial services remain inclined to use captives because of their need for close control and tight security.



Add Comment      Leave a comment on this blog post

Post a comment

 

 

 

 


(Maximum characters: 1200). You have 1200 characters left.

 

 

Subscribe to our Newsletters

Sign up now and get the best business technology insights direct to your inbox.


 
Resource centers

Business Intelligence

Business performance information for strategic and operational decision-making

SOA

SOA uses interoperable services grouped around business processes to ease data integration

Data Warehousing

Data warehousing helps companies make sense of their operational data


Thanks for your registration, follow us on our social networks to keep up-to-date