The WSJ reports today that a significant number of companies are selling off their captive outsourcing centers in India(sub. req.) Companies that are looking for cash are also concluding that it may be more efficient to work with outside vendors in the areas of IT outsourcing and Business Process Outsourcing. In selling off these captives, it is not unusual for the buyer to obtain a multi-year contract for the continued provision of services to the sellor. According to the article, 500 Western companies have such centers in India.
Use of Captives on the Decline