What is a captive firm?
The captive firm meaning is to act a legal veil that protects their parent in the event of a large insurance payout, while other businesses simply want to use captives to keep insurance segregated from their main business for liability purposes.
What is a captive model?
Captive model means that customer organization makes strategic decision to create its presence in the lower cost location and conduct work there as a part of its own operations. The activities are performed remotely, but they are not outsourced to the vendor. What is the English meaning of captives?
What are the advantages of a captive organization?
A company can benefit from the creation of captive organizations if it loses money on providing health and workers’ compensation insurance to employees, because the captive will retain losses, allowing the company to take a tax write-off on its captive even if the company's general operations generated a profit.