Deciding Between Captive Shared Services and Outsourcing | Article

Outsourcing MazeCaptive shared services and outsourcing are both effective business models for increasing efficiencies and reducing costs. In fact, many organizations today choose to operate in a so-called “hybrid” environment enabling an organization to deliver more effective services than it can do with either model alone.

Using a hybrid strategy successfully requires that an organization understand the advantages of each model and how to leverage one model’s strengths at a weak point in the other model. For example, the two models differ in their ability to quickly provide access to new skills, manage risk, provide flexibility, ensure confidentiality for proprietary information, and quickly scale up resources and specific skill sets.

Outsourcing Buzz Blog presented a three-part roundtable discussion among experts in both captive shared services and outsourcing, with participants sharing insights in the differences of managing both models. Participants included:

  • Joseph Soalheira, Advisory Board Member of the Shared Services & Outsourcing Network (SSON) global community
  • Krist Davood, Group CIO of Schiavello
  • Asheesh Mehra, Head of Sales, Infosys BPO Asia Pacific
  • Peter Barta, CEO of Everest Group Asia Pacific

Part I of the roundtable discussion blog focuses on:

  • The differences between internal shared services and outsourcing regarding change management with end users
  • Change-management pitfalls in both models
  • Some of the techniques on the critical path for achieving continuous process improvement in both models

Part II presents the participants’ opinions on:

  • How to optimize the value of outcomes in both models
  • How to avoid failed outcomes
  • How to evaluate whether shared services or outsourcing is the most effective model for supporting business intelligence objectives

Part III of the roundtable blog on the differences between captive shared services and outsourcing models presents information about how the two models differ in the amount of management effort and type of management skills they require.

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1 Comment on "Deciding Between Captive Shared Services and Outsourcing | Article"

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  1. Jacques says:

    Optimization makes for win-win in both. There is sometimes the perception that outsourcing is a bigger trend than captive shared but they both produce the cost saving and results.

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