Comparing 
Offshore Models

• Model

  • Managed Offshore Center

    • Insourcing of teams

    • Outsourcing of Offshore Management

  • Captive Offshore Center

    • Insourcing

 

• Offshore Ownership and Management​​

  • Managed Offshore Center

    • Esprillco & you

  • Captive Offshore Center

    • Insourcing

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• Legal Compliance in Offshore Geography

  • Managed Offshore Center

    • Esprillco

  • Captive Offshore Center

    • You

 

• HR Management

  • Managed Offshore Center

    • Esprillco

  • Captive Offshore Center

    • You

 

• Upfront Capital Investment

  • Managed Offshore Center

    • Esprillco and perhaps a minor investment by Onshore company

  • Captive Offshore Center

    • You

 

• Savings

  • Managed Offshore Center

    • 50 to 60%

  • Captive Offshore Center

    • 60 to 75%

 

• Control of Technology, Process Quality and IP

  • Managed Offshore Center

    • Marginally lower than a Captive Offshore Center

  • Captive Offshore Center

    • Highest

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• Flexibility to Change

  • Managed Offshore Center

    • Low for scaling down

    • Medium for scaling up

  • Captive Offshore Center

    • Maximum as you plan the long term strategy in beginning and can switch teams between projects, etc.

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• Flexibility to Exit

  • Managed Offshore Center

    • Medium as you need to pay for a minimum period

  • Captive Offshore Center

    • Low as you have investments and responsibility to local laws to be followed for closure

 

• Best Suited for

  • Managed Offshore Center

    • End users needing a dedicated team for their IT department

    • Small and Medium IT companies not wanting to take investment risks in Offshore geography

    • Good for 4 to 50 persons

  • Captive Offshore Center

    • Large IT players providing third party and consulting services

    • Large end user companies with global operations

    • Good for more than a 50 persons team

    • Low as you have investments and responsibility to local laws to be followed for closure