Tag Archives: captive it center

The Disadvantages of Captive IT Centers

Since the inception of off shoring or buying services from international vendors, a lot of captive centers have also materialized. This kind of business created by companies from industrial countries such as the US, is a version of off shoring characterized with full of control over the captive center unlike in off shoring companies wherein the firm has no control over the products made. However, the interest in captive centers decreased each day due to a number of disadvantages that this opportunity offers. Here are some of the most common downsides of captive IT centers:

Higher Expense than Expected

A lot of firms are not willing to pay high salaries to invest for the best talents and some of them don’t always expect high General and Administrative costs which can usually destruct a small company.