Virtual captives are increasingly becoming a popular solution as they occupy a median position in a spectrum that is occupied by outsourcing on one end and de-novo captives on the other. For the small and mid-market enterprises, who end up experiencing a ‘small-fish’ syndrome with large third-party providers and captive remains a pipedream due to lack of capital/appetite, virtual-captive is a hybrid option that offers a solid proposition Some of its specific advantages include:
- Higher degree of control: This model allows the enterprise to have full control of the business operations while the back-office set-up and processes are managed by the local provider. The enterprise leadership can practically walk-in and focus on capability build without having to worry about the compliance and other corporate function overheads.
- No/Low Capex: The market offers a transparent ‘Pay as you grow’ model on a cost-plus basis. This is extremely efficient for enterprises willing to test-ride the model
