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Comparison of Outsourced and Captive Solutions for Capturing Value from Offshoring

Published by: Everest Research Institute

Published: Oct. 1, 2007 - 69 Pages


Table of Contents


Background and scope

Summary of key messages

Sources of value from offshoring (TVETM)

Research methodology -conducting Total Cost of Ownership (TCO) comparisons

Research results -TCO comparison of third-party and captive sourcing models

Interpreting results to make holistic value comparisons

Appendix

Details of TCO analysis

Process transformation case studies

Glossary of terms

Additional research

Abstract

Choosing a third-party, captive or hybrid offshoring model is a critical decision for companies seeking to access offshore labor markets.

For companies seeking to quickly maximize cost savings, this research reveals from a Total Cost of Ownership (TCO) perspective that the third-party outsourcing model is typically 5-15% less expensive than utilizing a captive.

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