The Decline of Captivity

Posted by: Steve Hamm on July 16

The news that UK’s Aviva sold its captive (meaning company owned and operated) BPO centers in South Asia to WNS got me keyed up so I wrote a BW story about it. Indian tech company executives have been telling me for years that the captive model wouldn’t work long term, and it looks like they’re right. The pressure from currency shifts and competition for talent, plus the needs by Western banks for cash, is forcing some big shifts. A bunch of deals are being negotiated now, so this could turn into a hot news patch over the next few months.

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Innovation is happening everywhere these days. Companies operate without borders to find the best talent and the best ideas wherever they may be. Meanwhile, new business models are arising that just might make it possible to turn large swaths of this contentious world into something approximating a true global village. Tune in for Senior Writer Steve Hamm's dispatches from the intersection of globalization, innovation, and leadership.

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