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Captive Offshore IT Outsourcing: Best Practices from a Case Study
Abstract
A captive offshore center is a separate business arm of the parent company, wholly owned, to provide IT solutions to its parent company. Some of the reasons for setting up a captive offshore center in the literature include controlling cost and gaining access to low-cost skilled professional but in the case of a Chicago based Company (sears Holdings) it was considered a strategic. One hiding agenda was to lunch a new line of business offering to its US base customers from a low cost location. This chapter reveals how a Sears Holdings lunched a successful captive offshore IT center and why they received outsourcing best practices award from the industry. In achieving the goal of the chapter, interview data was collected from the management team in Chicago and the head of the offshore operation. We compare our result to previous research on offshore best practices and we find many correlations.
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