Captive centers are service delivery facilities that have nondomestic locations. They are usually less expensive to operate. Captive centers are still part of the company and heavily integrated with their operations, and they may serve a variety of purposes, including resource creation or customer service.
What Small and Midsize Businesses Need to Know About Captive Centers
Captive centers are usually established by larger businesses seeking to reduce costs. Local laws may allow for cheaper labor and a less stringent regulatory system. Captive centers are predominantly used by companies that have the need and resources to establish them. This almost always excludes small businesses.