Captive centers
In last few months, there has been two distinct strategies around captives by two different category of Captive IT centers. First category is the one which has invested in the captive couple of years ago and second where clients are just setting it up.
Sell vs. Scale. What is the strategy?
Most of the captives, who have been around for some time and have established a mature service delivery model, want to sell out. This would help monetize their investments.
Interestingly a lot of them are also trying to establish and scale up their captive IT centers in India. This will most likely last for another couple years before they hit a maturity curve and decide to sell it.
In my view, some of the captives will probably continue to scale and will sell it based on the efficiency and value it brings to the overall group operations. Some of them have been around for almost ten years and they seem to be doing well.
