Introduction

As the offshore services market matures, captives are exploring different mechanisms to deliver value beyond labor cost savings to their parent organizations. To help assess the future direction of captives, this research study gathers market perspective on issues such as current performance of the captive, focus of future delivery and key capabilities to build. The study is based on responses from senior captive as well as parent stakeholders across 56 global organizations.

Scope

• This research study syndicates multiple perspectives on the following issues:
  • How is the captive performing today on cost savings and service levels?
  • Is there support to deliver value beyond cost savings going forward?
  • What should the focus of future value be?
  • What capabilities should the captive focus on building?
• The study is based on responses received from 102 senior executives across 56 organizations.
• The 56 respondent organizations are spread across a wide range of industry verticals, locations, scale of operations and functions undertaken, and together represent a significant sample 

Contents

Contrary to recent market news, this study presents a fact base that vindicates the role and value proposition of captives today. In addition, there appears to be strong support among senior executives of the parent for the captive to step-up and deliver value beyond cost savings going forward. While there are some specific disconnects, overall there is consensus on the need to drive improvements over the scope the captive controls first. However, from a capability perspective, the study indicates that captives need to invest in multiple directions to step up and deliver against increased expectations.