Should you opt for a captive center or outsource to a BPO call center?

Should you opt for a captive center or outsource to a BPO call center?

OABPO Blog Team Published on October 17, 2013
confused-female-call-center-agent

Creating a captive center and outsourcing to a business process outsourcing (BPO) call center both offer cost reduction. But which one is a better choice? Generally, captive outsourcing has an advantage in terms of security and authority, while third-party outsourcing offers greater value in price and specialized industry knowledge.

Captive vs third-party outsourcing

Unlike today’s typical third-party outsourcing model, captive outsourcing is when a company moves its operations to a wholly owned subsidiary, instead of delegating it to a third party service provider. The subsidiary is commonly based in a low-cost location, perhaps in another region or country such as India or the Philippines.
Understandably, captive outsourcing is preferred by companies that would like to retain full control of operations. Since the subsidiary is still a part of the main company, the company can control how it’s integrated and how products are made and delivered.

Moreover, there are smaller security risks particularly when it comes to access to information and other resources since the company doesn’t have to open up their database to an external provider.

On the other hand, captive outsourcing has its own drawbacks. First, it’s more expensive than outsourcing to a BPO call center. The company has to fully invest in the offshore operation’s infrastructure (eg., land, buildings, equipment, etc) and maintenance cost. In IT services, for instance, a company can save 5%-15% more if they outsource to an offshore provider rather than opt for the alternative.
Lastly, the company may miss out on the skills and knowledge of a third-party specialist working with multiple clients.

Which is the right model for your business?

Each service delivery model has its own merits. When deciding which one best suits a company, one needs to assess various factors, such as the availability of skilled workers, business control, and continuous improvement capability, among others. Generally speaking, the best model is one that fits a company’s short- and long-term plans.

In some cases, the optimal solution does not lie in either of the two, but a “hybrid,” or combination of both models.

JOIN US ON FACEBOOK
Open Access BPO
Open Access BPO14 hours ago
Meet the diverse superheroes of our #ContactCenter team! From analytical minds to empathetic listeners, we've got it all.

Swipe through to see the incredible personalities, working styles, and motivators that make our customer service shine!

----------
Our #recruitment & training strategies are designed to get the best reps for your brand.
Oursource with us today: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO18 hours ago
#CallCenters need to build a consistent and memorable #CustomerExperience covering all channels, both digital and non-digital. You need a high-performing #multichannel team that can successfully implement your #CustomerService strategy.

Here's how: https://buff.ly/3qvoHui

----------
Let us create the multichannel program and team for your brand: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage`
Open Access BPO
Open Access BPO2 days ago
Among other benefits, 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗺𝗼𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 monitors and reviews user-generated content to:
• ensure the safety of customers;
• combat spam and potential scams;
• prevent misinformation and fake news;
• boost user experience; and
• cultivate an inclusive community.

𝗕𝘂𝘁 𝘄𝗵𝗶𝗰𝗵 𝗰𝗼𝗻𝘁𝗲𝗻𝘁 𝗺𝗼𝗱𝗲𝗿𝗮𝘁𝗶𝗼𝗻 𝗺𝗲𝘁𝗵𝗼𝗱 𝗶𝘀 𝗿𝗶𝗴𝗵𝘁 𝗳𝗼𝗿 𝘆𝗼𝘂𝗿 𝗯𝘂𝘀𝗶𝗻𝗲𝘀𝘀?
Explore the fascinating types of #ContentModeration shaping the digital landscape: https://buff.ly/3WR5rn5

----------
Work with our content experts to build a community where everyone feels heard and protected: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO3 days ago
Preventing your customers from leaving your brand may not be as easy as it sounds, but here are 5 tips your outsourced #CallCenter's customer retention team must consider: https://buff.ly/3Nem7Sb

----------
Ensure brand loyalty with Open Access BPO's high-quality #CustomerSupport. Contact us today: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CustomerRetention
Open Access BPO
Open Access BPO3 days ago
#CallCenter Team Leaders drive progress and ensure top-notch service for your brand's customers.

Want to unlock the secrets to becoming an extraordinary leader for your team?
Here are the 5 biggest enemies of great leadership, along with a few tips on how to be a good leader: https://buff.ly/45LagCr

----------
Partner with Open Access BPO. We have great call center agents and team leaders to guarantee your brand's growth: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
Open Access BPO
Open Access BPO7 days ago
To build a truly customer-centric organization, your #CustomerExperience team must be highly emotionally intelligent.

Here are the 5 advantages of cultivating #EmotionalIntelligence among your #CallCenter staff: https://buff.ly/43uHbcu

----------
Connect with an #outsourcing firm that can deeply connect with your customers: OpenAccessBPO.com/get-started

#WeSpeakYourLanguage
#CX #CustomerSupport
Open Access BPO