Outsourcing Reimagined: What ECAPTIVE Is, and Why It's Not Managed Services
Outsourcing, offshoring, nearshore, managed services, captive: the terms get used interchangeably, and they don't mean the same thing. In this 28-minute conversation, ECLARO's Eric Feil (SVP) and Ken Morris (SVP, Global Services) define each one in plain language, explain how ECAPTIVE differs from managed services and from building your own captive, and share why ECLARO has built dedicated teams in the Philippines since 2004.
What is ECAPTIVE?
A captive is an offshore operation a company owns itself: its own building, its own licenses, its own payroll and HR. ECAPTIVE gives you the dedicated team without the building. ECLARO plays the captive for you: the real estate, technology and administrative support are folded into one hourly rate per person, and every team member works only for you. Ken Morris explains it at 12:53 in the video.
Three ideas from the conversation
1. Outsourcing Reimagined
Most people picture outsourcing as a managed service: a provider delivers an output, such as a number of help desk tickets or a project, for a fixed or per-unit price, often with a shared team serving many clients. ECAPTIVE is the custom alternative. ECLARO and the client source and hire the team together, and the team works as if it sat onshore with the client. It just happens to be in the Philippines.
2. the Right People are the Answer®
The Philippines is still known as the call-center capital of the world, but that is not what ECLARO does there. Teams cover IT, from application development and help desk to big data, AI and machine learning, as well as finance and accounting, HR, marketing and insurance operations. ECLARO's clients have called Manila the Silicon Valley of Southeast Asia. Before taking on a role, ECLARO scans the local market for that skill set, and says so if it isn't there.
3. Dedicated, Not Shared
ECAPTIVE team members are ECLARO employees, hired by ECLARO and never subcontracted, and each is dedicated to one client for as long as they work for ECLARO. There is no bench and no moving people between clients when it suits the provider. They work the client's shift, whether that is 9 a.m. New York time, an overnight shift or follow-the-sun coverage.
Managed services, your own captive, or ECAPTIVE
| Managed services | Your own captive | ECAPTIVE | |
|---|---|---|---|
| Who the team works for | Often shared across several clients | Only you | Only you |
| What you pay for | An output: tickets, lines of code, a project, a unit price | The building, licenses, payroll, benefits and staff | One hourly rate per person, with facilities, technology and admin included |
| Knowledge of your business | Generic, so it can be shared | Deep | Deep: the team learns your processes and technology |
| Setup | Fast | Expensive, slow and risky: real estate, licenses, local regulations | ECLARO's existing centers in Metro Manila |
| Working hours | The provider's | Yours | Yours, including follow-the-sun |
| Best fit | Generic, repeatable work | Large companies ready to run an offshore entity | Companies that want a dedicated team without running an entity |
As Eric and Ken say in the video, ECAPTIVE isn't the right fit for everyone. If a managed service in another location makes more sense for your business, ECLARO will tell you.
In their words
"In the case of ECAPTIVE, what we do is we play the captive for you. You don't have to have the expensive real estate, the overhead."
Ken Morris, SVP, Global Services
"They don't really know anything specific about those clients. They're not dedicated to those clients."
Eric Feil, SVP, on the shared bench in a typical managed service
"When the client engages and treats them as if they were their own employees, that's when the magic happens."
Ken Morris, SVP, Global Services
In this conversation
- 0:27 Why "outsourcing" means different things to different people
- 1:13 The lawn-mower analogy: outsourcing, explained simply
- 2:21 There's no right or wrong reason to outsource
- 3:38 Onshore vs. nearshore vs. offshore: the real differences
- 4:45 Why ECLARO chose the Philippines
- 5:25 Beyond call centers: the talent depth of the Philippines
- 7:38 Matching skill sets to client needs
- 8:53 Managed services, defined
- 10:30 The ECLARO difference: dedicated, not shared
- 12:53 What is ECAPTIVE?
- 14:02 The hidden costs of setting up your own captive
- 15:21 Onshore vs. nearshore vs. offshore: pros and cons
- 19:05 The Philippines advantage: cost, time zone, talent
- 20:27 "There's no trade-off": addressing the myths
- 21:58 Manila, the Silicon Valley of Southeast Asia
- 23:31 How to choose the right outsourcing model for your business
- 24:45 Follow-the-sun: any shift, any hours
- 26:01 Why dedicated talent builds loyalty, and why culture matters
- 27:05 Where the magic happens
Frequently asked questions
What is ECAPTIVE?
ECAPTIVE is ECLARO's custom outsourcing model. ECLARO builds a team in its Metro Manila centers that works only for one client, as if it were that client's own captive operation. The client pays one hourly rate per person, which covers the facilities, technology and administrative support.
How is ECAPTIVE different from managed services?
A managed service sells an output, such as a number of tickets or a finished project, and the people doing the work are often shared across clients. ECAPTIVE provides dedicated people who learn the client's own processes and technology and work as part of the client's team.
How is it different from setting up our own captive in the Philippines?
With your own captive you buy or lease the building, handle licenses and local regulations, and run payroll, benefits and facilities yourself. With ECAPTIVE, ECLARO takes all of that on, using the centers and processes it has run in the Philippines for 20 years.
Why does ECLARO build teams in the Philippines?
Because of the talent, the time zone flexibility and the cost. ECLARO has worked in the Philippines since 2004 and finds a large, educated, English-speaking workforce with strong IT and business skills that is culturally aligned with the US.
Can a Philippines team work US business hours?
Yes. ECAPTIVE teams work the client's schedule, whether that is 9 to 5 New York time, a second shift or round-the-clock follow-the-sun coverage.
Are ECAPTIVE team members ECLARO employees?
Yes. ECLARO hires them directly and does not subcontract the work. Each team member is dedicated to one client and is not moved to other clients.
Talk to ECLARO about your team
Tell us what you want to outsource and why. We'll tell you honestly whether ECAPTIVE is the right fit, and how a dedicated team in the Philippines would work alongside your US staff.
Want the full background first? Read The Ultimate Guide to Outsourcing and Offshoring in the Philippines or learn more about custom outsourcing and offshoring with ECAPTIVE.