Captive units have been a popular operating model among large
global organizations, given their cost-effectiveness. About 1600
international firms have started their captive units in India,
driven by superior talent availability, coupled with cost
advantages and a well-established ecosystem in Indian cities. These
captive units provide various services such as Software Development
and Testing Services, Design, Engineering and R&D, Technology
Support, Accounting, Payroll Processing, Insurance, Data
Management, Legal, and collections and payments services to their
parent entities. Overall employment by these captives is in excess
of 1 million and accounts for over 25% of the total IT and Business
Process Management (BPM) sector employment in India.