Monthly Archives: June 2010
Captive Centers in Singapore
Businesses who want to create captive centers in Singapore should consider a lot of things before starting up. Captive centers have its upsides and downsides and business owners should look it all up to weigh what is good for their businesses.
Captive centers are also called “in sourcing” centers because multinational companies made them in cheaper labor countries instead of hiring another company to do the work for them as off shoring does. The multinationals benefits through cheaper labor in captive centers compared to their main branches. Also captive centers are a way to separate there core and non core competency plus having full control of the company.
Cheap labor and the focus on core competencies on mother companies are the prominent advantages of captive centers in Singapore but these upsides have been downgraded by a lot of disadvantages surrounding this kind of company structure.
How to get the most from your captive center
Nearly in every corner of the world today you can see captive centers operating round the clock. It seems that they are all over the place now. From South Asia to East Asia, captive centers continue to be the main preference of different top organizations in this day and age so as to effectively meet their sourcing needs.
Various international companies these days set up Captive Centers in countries like India and China in order to leverage the offshore advantage of these nations and pool in resources to work for them. If truth be told, captive centers are unable to get by without the parent company for operation and business.
Captive Centers in Bangalore
Are captive centers in Bangalore dying? There is a significant increase in the IT industry in India these past years however, captive centers made by multinationals are slowly dying. What are the reasons for this? And what is another alternative other that captive off shoring in Bangalore?
We are aware that the primary reasons why multinationals opt to create their own captive centers in Bangalore are cost savings, quality improvement, and strategic reasons.
The two main motives to create captive centers would be to safeguard the company’s competence and/or of course a vision to transitioning the essential from tactical to strategic.
Captive Centers in Vietnam
In recent years an increasing number of Americans have visited the charming country of Vietnam for the first time. Unfortunately, they have been military personnel, government officials, and newsmen involved with the Vietnam War. I spite of the war, civilian travelers have not been banned from South Vietnam, provided they obtained required special visa. North Vietnam does not welcome Western tourists, particularly Americans.
Vietnam was mostly viewed as a state that depends on its agricultural exports and low-wage manufacturing. But that scenario has completely changed. Back in the day when Bill Gates, the founder of Microsoft Corporation visited Vietnam, he said that “there was no reason why Vietnam could not follow India into software development and other forms of outsourcing”.
Malaysian Captive Centers
Malaysian captive centers have been booming since its inception. Outsourcing companies in Malaysia boost a 30% increase annual income according to industry sources and is expected to reach the $1.9 billion mark in 2013. This is due to the fact that big companies like Shell, HSBC and DHL setting up their own Malaysian captive centers.
Here are some of the reasons why multinationals decide to create their own captive centers on this country:
Growth in IT – most multinationals chose to create their own captive centers in Malaysia because of the knowledge advancement of human resources in the said area.
