Captive centers are wholly owned subsidiaries managed by the parent company, providing full control over processes, security, and talent alignment. They are ideal for long-term, strategic projects requiring proprietary expertise but involve high upfront costs and longer payback periods of 3–5 years.
Third-party outsourcing relies on external vendors to achieve cost savings of up to 40% and greater flexibility, making it suitable for short-term needs or specialized skills. However, it comes with risks such as reduced operational control and potential security vulnerabilities compared to captive models.
