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⍰ ASK What is the difference between an IT Captive and IT offshore company?

IT captive centers and IT offshore companies are terms used to describe different models for outsourcing technology services.

  1. IT Captive Center: An IT captive center is a subsidiary or affiliate of a parent company that provides IT services to the parent company and its related entities. IT captive centers are typically set up in low-cost locations to take advantage of lower labor costs and to access local talent pools. The parent company owns and manages the IT captive center and has complete control over its operations.
  2. IT Offshore Company: An IT offshore company is an independent company that provides IT services to clients, typically in a different country. IT offshore companies offer outsourcing services to multiple clients and are not affiliated with a specific parent company. Clients may contract with IT offshore companies to access specific technology expertise or to reduce the cost of IT services.
 

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