July 9 live event will examine the post-pandemic logic of maintaining captive delivery centers for non-core activities

STAMFORD, Conn., July 07, 2020 (GLOBE NEWSWIRE) -- ISG experts will explore whether now is the time for enterprises to sell their captive delivery centers and outsource their non-core business activities to third-party providers, during the next ISG Smartalks™ webinar, hosted by Information Services Group (ISG) (Nasdaq: III), a leading global technology research and advisory firm.

In the live, hour-long session, “Assess the Value of Your Captive and Improve Your Risk Profile,” at 11 a.m., U.S. Eastern Time, Thursday, July 9, ISG Partners Scott Furlong and Michael Fullwood and Chief Knowledge Officer Cynthia Batty will review how the COVID-19 pandemic has revealed flaws in the captive delivery model, and discuss how captive monetization could optimize value and reduce risk. 

“Many captive operations are not as strong as third-party service providers in scaling resources up or down in the short term, and as a result, have not stood up well to the current crisis,” Furlong said. “Meanwhile, the captives’ need for more bandwidth, always-on connectivity and greater access to collaboration software has exploded—all in an economic time when enterprises are looking for increased variability in their cost structure, not increased rigidity.”

Fullwood noted the COVID-19 crisis has revealed weaknesses in some captives’ business continuity plans when the workforce was ordered to stay at home. Many captives struggled to scale operations in the face of dramatic and swift changes in demand.

“Getting services back up and running—even just to emergency levels—has been difficult, and, in some cases, the captive no longer offers the advantages it was built to offer: high quality, low attrition and cost savings,” Fullwood said. “In that instance, the strategy that drove companies to build captive operations instead of outsourcing the services is no longer viable. This realization is driving enterprises to consider monetizing their captive operations.”

Several factors can support or inhibit a successful monetization strategy, Batty said. One is knowing how to assess an operation’s value, based on factors like its impact as a true internal service provider to the business, its ability to scale, its attrition rates, its processes or tools valued as intellectual property and how its business continuity plan performed in the face of COVID-19.

“Monetizing a captive can be a practical and smart way to adjust the enterprise risk profile and protect against future events,” Batty said. “Because enterprises often sell their captives to a service provider, then buy the services back, they can retain knowledge and resources in a way traditional outsourcing wouldn’t allow. Providers have already mastered the art of applying best practices across clients and industries and have the ability to redeploy resources in an agile manner.”

Added Batty: “We look forward to an interesting discussion of what leading companies are doing with their captives and how to evaluate the potential of captive monetization.”

To register for this ISG Smartalks™ webinar, visit the event website.

About ISG 

ISG (Information Services Group) (Nasdaq: III) is a leading global technology research and advisory firm. A trusted business partner to more than 700 clients, including more than 75 of the world's top 100 enterprises, ISG is committed to helping corporations, public sector organizations, and service and technology providers achieve operational excellence and faster growth. The firm specializes in digital transformation services, including automation, cloud and data analytics; sourcing advisory; managed governance and risk services; network carrier services; strategy and operations design; change management; market intelligence and technology research and analysis. Founded in 2006, and based in Stamford, Conn., ISG employs more than 1,300 digital-ready professionals operating in more than 20 countries—a global team known for its innovative thinking, market influence, deep industry and technology expertise, and world-class research and analytical capabilities based on the industry’s most comprehensive marketplace data. For more information, visit www.isg-one.com.

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Will Thoretz
Information Services Group, Inc. 
+1 203 517 3119
Will.Thoretz@isg-one.com

Jim Baptiste
Matter Communications for ISG
+1 978 518 4527
jbaptiste@matternow.com