A Virtual captive can be considered advantageous due to smaller financial risk at the initial investment and local presence and experience of the provider can decrease the set up and operational risks.
The model provides an opportunity for SMEs to be flexible and ensure continuity in operations.
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Offshoring may encounter some resistance with the cries that the practice is similar to exporting jobs. Such arguments ignore the offshoring benefits to enhance organisation capabilities & the essence of comparative advantage between economies.
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