What is Captive Unit ? | Jobs | Career | Captive Unit | Company | Keep Learning | Save This | Share

A Captive Unit, also known as a Captive Center or Captive Office, is a dedicated entity set up by a parent company to handle certain business functions internally rather than outsourcing them to a third-party provider. These units are typically established in locations that offer cost advantages, skilled labor,.

Here are key points about Captive Units:

1. Purpose: Captive Units are created to manage specific functions such as IT services, customer support, finance, human resources, research and development, and more. The goal is often to maintain greater control over these functions, improve efficiency, reduce costs, and ensure quality.

2. Benefits:

o Cost Savings: Setting up a Captive Unit in a region with lower labor and operational costs can result in significant savings.

o Control and Security: Companies have full control over operations and data security, which is particularly important for sensitive or proprietary information.

o Quality and Compliance: Ensuring high standards of quality and adherence to internal policies and industry regulations is easier with direct oversight.

o Scalability: Companies can scale operations according to their needs without relying on third-party vendors.

3. Types of Captive Units:

o Pure Captive: Operates exclusively for the parent company without taking on external clients.

o Hybrid Captive: Primarily serves the parent company but may also take on external clients to offset costs or maximize resource utilization.

Overall, Captive Units can offer substantial advantages for companies looking to optimize certain business functions while maintaining control over quality and security.

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