Why Captive Center: Business Case

Captive centers allow businesses to significantly cut costs and increase capitalization while retaining full operational control, ensuring long-term value creation and minimizing intellectual property and data security risks.


Decision to take your work to the lower cost country doesn’t necessarily mean that you have to outsource it. Use of remote resources for the delivery of functions close to core business while retaining operational control and benefiting from real cost advantages can be achieved by means of setting up own captive center, thus keeping work within your company.

Captive model means that customer organization makes strategic decision to create its presence in offshore/nearshore location and conduct work there as a part of its own operations. Activities are performed remotely, but they are not outsourced to the vendor. Thus the customer is able to retain full control and mitigate respective risks associated with intellectual property and other sensitive business information.

Is Captive Center a Right Model for Your Business?

Software development is your core competence

You are implementing several mid-size or large software projects

You are willing to build a nearshore delivery center in order to realize true cost-savings, access the pool of skilled IT staff and have full operational control over the team

You are planning to have a team of up to 50 IT employees (software engineers, analysts, technical managers, QA engineers) working on your projects at the nearshore location

By moving software development nearshore you want to capitalize your own company rather then invest into outsourcing vendor

You have already considered option of setting up own development center in other Central or Eastern European countries but were discouraged over rather high costs of IT personnel that are constantly rising after these countries have joined EU

If the above-mentioned statements relate to your company, it makes sense to build own nearshore development center in Ukraine in order to support full software development life-cycle, secure intellectual property and build up specific know-how.

Nowadays, this process is not as difficult as it used to be. The key to success is finding a trusted partner that successfully operates in the environment of nearshore country and brings in necessary knowledge and skills. The partner is responsible for initial setup, staffing and operations. Finally, your company takes ownership of the development center tailored to its specific requirements/needs.


Why Partner with IIT Nearshore Sourcing for Establishing Captive Software Development Center in Ukraine