Home > Movies > IT Services Providing Companies vs. IT Captive Units

IT Services Providing Companies vs. IT Captive Units

I have just completed 2 years of my work experince in IT industry as Business Analyst. Out of 2 years , I have spent 13 months in Satyam Computers (now Mahindra Satyam) and rest in HSBC Technology Services. Based on my experience, I could easily draw a line of distinction between the way of working of an IT Services Providing Companies and IT Captive Units.

Companies outsource their IT operations/processes to IT services providers and sometimes the same companies establish captives out of a desire to have close control over offshore R&D operations, so you could say that how do they differ in the way they operate. It should be more or less same thing.

But they do differ. You might not completely agree with my views, but then if you have experienced both the environment, you won’t completely deny either.



(IT) Service Providing Companies (IT) Captive Units
1. Billings may be higher for a senior resource than a junior one. 1. Billings are always same for a fresher as well as a 20 years experienced resource.
2. Try to follow 40:60 onsite-offshore model. Prefer to keep resources at onsite as this will generate more revenue. 2. Allow resources to travel overseas in rarest of the rare cases. Mostly their concept is 1 or 2 out of 10 resources should be at onsite.
3. They will focus to grow their business and increase revenue. 3. Their focus will be to keep expense on IT as low as possible.
4. Associates may have opportunities to work in multiple domains. 4. One would have not have multiple options.
5. Would try quality work to be given to senior resources. 5. Senior, junior resources are treated as same in captives (based on my personal experience).
6. These companies would try to sell their associates to their client so as to fetch as many projects as they can. In this process they encourage their resources to upgrade their skills and be more competent. 6. There is no such need when captives would sell their resources as they have a fixed customer. Many a times it seems that they are least bothered about the interest of their resources.
7. Mostly associates work on specific technology or tool and they have a defined domain in which they gain expertise to grow over the period of time. This expertise, associates can carry to next organization whenever they look for a change. 7. In BFSI Captives, they mostly have In-Built systems (as different financial organizations work differently, probably because of that one financial organization’s processes are different from the others), so in many cases for associates like Business Analyst it becomes very difficult to develop a particular domain. When going for a change, it is difficult for next organization to map BAs’ skills with their requirement.



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