Setting up offshore IT services and business services subsidiaries has once again become a preferred route for multinational companies wanting to tap talent in low-cost locations, analysts said. The subsidiaries are known in the outsourcing industry as "captive centers" because they meet the in-house services requirements of companies.
The focus of these centers has shifted from mere cost-cutting to innovative development and building deep business expertise which local outsourcers are not always able to provide, according to a report this week by Forrester Research. Companies are adopting a hybrid model for offshoring that combines captive centers with outsourcing to local service providers, it added.
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Offshore IT And BPO Services Subsidiaries Still Popular
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