In today’s competitive world, businesses want to be careful when deciding whether a large software development project should be done in-house or done by outsourcing the work. Some companies have an in-house software development setup (captive centre subsidiary), but they are so flexible that they outsource work to reliable vendor partners. Other organisations no longer outsource major software development work, because of their captive centre setup which has long-term goals. You can select the best one that suits your business’s purpose in the short-term and in the long-term, by comparing the two setups. So let’s take a look at a comparison of the key drivers and challenges for a captive centre set up with those for a vendor partner set up. Key Drivers for the Captive Centre Setup Does your business have a captive centre in a low-cost area? Do you want to benefit from the cost-savings of offshore resources? Then this model is the one for you. You can choose to set up your own captive centre to make the most out of its large-scale offshore plans. Does your business deal with sensitive information? Do you want to prevent the potential risk of data leaks to third parties? Then you may prefer this model. For example, if your business is based on banking, insurance or the stock market, you deal with a lot of monetary transactions and sensitive customer data. Do you want complete control over your sensitive operational activities, like product costing and new product launches? Then this setup is suitable for you. Does your business handle a complex software development project? Then the knowledge gained by...
