Hybrid captive centers – low risk, high performance It is a well-known fact that many companies today outsource partially or wholly their functionalities to off-shore entities in either the Hybrid captive model or shared captive model. In the captive model bigger organizations setup overseas subsidiaries in offshore locations. In the hybrid captive model, the offshore entity or the hybrid captive center dedicatedly performs core business functionalities for the parent company and the other non-basic functions are performed by an outsourced vendor. In the shared captive model though, the shared captive center carries out work for the parent company as well as serves as a revenue generating unit as it works with many external customers too. Both these models have their own set of pros and cons but what is essential is that organizations work diligently to understand the difference between both the models and evaluate the level to which each model aligns with the specific requirements of the company. Fundamental difference between the shared captive model and hybrid captive center
The Hybrid center involves comparatively lesser initial investment while ensuring that there is a greater amount of flexibility and adaptability in the entire model. While the shared model involves higher capital investment and hence is associated with financial liabilities and risks, the hybrid setup has no commitment associated and hence no risk per se attached. The shared service center typically takes about 6 months and above for implementation and roll off with execution. The hybrid captive center on the other hand is quick to execute and start work.
There are other benefits too that start to show once the hybrid center starts working. For one, clients have total control on operations and the model is quick to acclimatize itself with changing and ever-evolving business needs and requirements. While the advantages are numerous, it is essential that companies that wish to get into the hybrid captive mode, hire the right consultants for formation of the correct strategy and execution in a well-organized manner. Technical counsel and advisory committees are formed to perform a specific role in the organization. More often than not, the purpose and objective behind the formation of such committees is to provide technical guidance and support to the core team in technology-related development, investment and implementation. The committee members need to have thorough experience and knowledge, besides being proficient in their primary area of work.
Organizations often involve a third-party business firm that specializes in the particular genre of work that it is seeking to liaise with. The involvement of consultants from the outside means that the brainstorming sessions related to different facets of technical development in the organization will be more exhaustive and updated, inundated with novel ideas and suggestions. The committee also collaborates with various other core committees to help with technical documentation, test and assessment of applications and systems before they are put out for large-scale use. Having the right consultant as a partner on the technical advisory committee is of high essence that can make a crucial difference in the success or failure of the technical project. Source Code https://www.goodreads.com/story/show/1162497-technical-counsel-and-advisory? chapter=1