From our experience, the incubation period of a Captive Center takes from 3 to 12 months, depending on the complexity of the engagement. During this period we develop the core team, setup communication between the parent organization and its' Captive, setup ongoing recruitment programs and implement a full cycle of knowledge base setup. Productivity levels will gradually increase during the incubation process. It is very important for the parent organization to view this incubation period as an investment that will provide long-term benefits.
Captive setup begins with the recruitment of the core team members. It is extremely important to perform the knowledge exchange during the initial setup stage that usually lasts from 2 weeks to 3 months. This stage requires frequent visits between the parent company and its Captive. Sometimes, employees of the Captive need to spend an extended period of training time (2-3 months) on the parent side to become familiar with parent company processes. On the other hand, the principal part of the core team needs to stay on the Captive's side to support the knowledge base setup for the rest of the team.
The Captive Center Model requires a higher level of engagement from the parent organization as compared to third party vendor relationships. The best way to make the incubation process successful is to assign an Offshore Operations Manager on the parent side to be in charge of the ongoing governance of the Captive Center in order to mitigate risks during the engagement process. The Intego Group management team will perform all back office management activities and act as the liaison between the parent organization and Captive. Intego Group will not interfere in the processes that the parent company establishes; instead it will help make the engagement more successful by coaching both sides on best practices.
When the incubation period is complete, the Intego team will be able to recruit team members on a permanent basis. In order to support the knowledge base setup process, the Captive will have its own methodology and different optimization models in place to utilize new hires as quickly as possible. Intego Group does not recommend hiring more than 10 employees per month because of the risks associated with not bringing new hires up to speed in a timely manner.
