New launches of captive centers offshore continued to increase in the first half of 2015, according to research from outsourcing consultancy Everest Group. Companies in the manufacturing, telecommunications and technology industries, in particular, expanded their in-house presence offshore in the first and second quarters compared to last year. Manufacturers, for example, set up 18 new in-house centers in the first half of this year, compared to just six during the same period in 2014, according to Everest Group.
And these wholly owned service centers, which traditionally served as back-office delivery centers, are beginning to play a key role in IT transformation efforts. “In the past, global in-house centers (GICs) were playing service delivery roles for the enterprise,” says Salil Dani, vice president of global sourcing for Everest Group. “While most of the GICs continue to play this role even now, there are some GICs that are taking ownership for digital transformation for the enterprise.”