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Most of the US companies are effected by the recession and the end does not seem to be coming soon. These companies are going to look for countries like India and China to source low cost labour and at the same time use the opportunity to expand into new geographies to expand their business. Captive companies can work to create this opportunity without much of cost. However the fact is that every captive company is not well managed and just opening a captive company is not the solution. It is important to have a long term view and the move should be backed by the top management with clear success criterions. Captive companies are getting matured and a lot of them are a huge success. Previous failure lessons must be derived to increase the success ratios. A successful captive company will always be focussed and will work in collaboration with the third party IT companies and work to generate high value for the parent organization.

 
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