There is a distinct trend in the Indian BPO scene when many global corporates exit out of their own captives preferring to sell them to Third-Party providers.
This transition usually comes as shocks to all concerned - the global corporate, the employees of the center and the third-party provider. Many classy BPO providers have extensive experience handling these these transitions with ease but still these are some of the typical problems encountered:
a. Cost Structure: Many captive centers are used to a higher cost structure than third-party providers. They have dedicated IT folks while third-party providers have IT costs spread across many many engagements. In general the attitudes towards costs is a shock to everyone.
b. Attrition: Because of cultural differences or in general, unease with the change, many people may decide to leave, especially good ones!
c.Culture Change: Captive centers have a culture of serving internal groups. Third-party providers have a culture of being scrappy to land engagements. They may not be used to the speed and efficiciency with which some of the third-party providers may move compared to the captives.
d. Emphasis on Performance: Many captives have a very streamlined, disciplined approach to performance measurement, reporting and analysis but many may have a lax attitude that may be different from the culture of the third-party providers.
Captives transitioning to third-party comes with its own advantages, but invariably, the transition period may be marked by culture shock and procedural changes on how work gets done.