Why Captive Center: Decision Factors

Listed below are main strategic and operational factors that facilitate organization’s decision in favor of establishing own captive center.


Strategic factors:

• Decision to deliver any of core services using remote resources
  
• Desire to reap true cost benefits of having own operations in lower cost locations
  
• Desire to have direct control over remote team
  
• Need to build and retain specific domain knowledge
  
• Regulatory constraints that prohibit outsourcing of processes
  
• Readiness for internationalization and localization of business management
  
• Commitment to putting effort into managing team of the captive center and integrating it into the organization
  

Operational factors:

• Guaranteed long-term specialized resource requirements
  
• Predictability of growth and retraction
  
• High levels of intellectual property (IP), data security and business knowledge sensitivity
  
• Existence of strong delivery processes in the parent organization
  
• Preparedness for the capital investment
  
• Desire to gain long-term efficiencies not only for software development but also for support, maintenance and other functions
  

Why Establish Captive Software Development Center in Ukraine