{"id":3683,"date":"2018-10-29T19:10:55","date_gmt":"2018-10-29T19:10:55","guid":{"rendered":"https:\/\/www.peeriosity.com\/shared-services\/articles\/?p=3683"},"modified":"2022-09-05T18:55:30","modified_gmt":"2022-09-05T18:55:30","slug":"defining-a-captive-or-bpo-sourcing-strategy-for-shared-services","status":"publish","type":"post","link":"https:\/\/www.peeriosity.com\/shared-services\/articles\/2018\/10\/defining-a-captive-or-bpo-sourcing-strategy-for-shared-services\/","title":{"rendered":"Defining a Captive or BPO Sourcing Strategy for Shared Services"},"content":{"rendered":"

Introduction<\/strong><\/span><\/p>\n

Outsourcing back-office processes that are often found in a Shared Services center continues to be popular as external service providers improve the quality of their services and methods for how to best transfer and manage work processes become routine.\u00a0 Outsourcing isn\u2019t a \u201cone size fits all\u201d approach, nor is it possible to flip responsibility for entire processes to a third party.\u00a0<\/span><\/p>\n

For companies that outsource there is always a mix between captive and BPO<\/a>, with varying degrees of process level and higher process ownership rights either shifted to BPO <\/a>or retained, depending on each company\u2019s circumstances and risk thresholds.\u00a0 It is important that Shared Services leaders<\/a> develop a strategy related to outsourcing so that they clearly understand how outsourcing alternatives fit into the overall strategy.<\/span><\/p>\n

iPollingTM<\/sup> Results Review<\/strong><\/span><\/p>\n

A recent Peeriosity iPollingTM<\/sup> question asked about the overall strategy related to outsourcing Shared Services processes.\u00a0 The results suggest that 54% of member companies follow either a captive or a captive with a selective outsourcing approach<\/a>, with 12% indicating that BPO was the primary approach followed.\u00a0 34% of responses indicate an even mix between a hybrid approach that was trending to more captive and a hybrid approach that was trending to include more BPO. \u00a0Here are the details:<\/span><\/p>\n

\"iPolling:<\/p>\n

Regarding the primary location of service centers for member companies, 42% are in North America, 21% are in India, 8% are in Eastern Europe, and 4% are in Europe, with 25% having a broad mix across geographic regions.\u00a0 This isn\u2019t surprising, since the profile for many of Peeriosity\u2019s member companies, where over 50% have revenue greater than $10B per year, is to have headquarters in North America with global operations for manufacturing and sales.\u00a0<\/span><\/p>\n

\"iPolling:<\/p>\n

Here are a few of the comments from responding companies regarding Shared Services center location:<\/span><\/p>\n