It seems captive offshoring is losing its glow? Latest report by Forrester Research states that unless giant captive offshoring centers of companies like Dell, Microsoft, SAP, Honeywell do not shift their outsourcing operation to third parties, there may lie the risk of mounting up huge losses.
Why is it so, you may wonder, only few years ago these companies have opened up their centers with much fanfare and rosy predictions. What went wrong?
Basically there are four reasons behind the trend:
1. Unrealistic cost model
2. Attrition amongst employees
3. Lack of process integration
4. Inadequate and/or faulty management support
The report also shows positive cases where firms like Yahoo, Google and Seagate are partnering with Indian third party BPOs and building, operating and transferring the process specific tasks but third BPOs and vendors take all the risks which involve successfully running and managing the operations.
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