The inhouse offshoring trend - the so called captive IT and back end office units of the western companies have started the downhill trend. With the news of the first captive BPO being closed - unceremoneously as we are told here
What is this trend really! Why this is happening - as mentioned in the news item Forrester reports 60% of captives having issues.
The issue in my opinion is not captives alone - it is the parent organization that doesnt have the patience and focus to minimize the inefficiencies in the way the system is built. Inhouse offshoring as a model could have become a fantastic capability if the parent organization gives autonomy and Profit and Loss responsibility to the captive. If it is pure cost center than anyway it will always remain like that - and the tentative ways in which companies try to execute captive centers will face more failures than success.
It is a long term commitment to create a global organization that will build companies that last - else we are seeing the death of more companies!