The offshore captive model, without building the captive

Get the dedicated team and day-to-day control of your own offshore center, with no entity to set up. When you’re ready to own it, the path is already built in.

Plan your captive-style team
12+
Years building offshore teams
98%
Client retention
35:1
Employee-to-manager ratio
SOC 2 Type II
Certified security controls

What is an offshore captive model?

An offshore captive model is when a company owns its own offshore entity. That entity runs functions like IT, finance, or customer support.

It owns the entity

The company owns its own offshore entity, and that entity runs the functions.

It controls the team fully

The company controls the team fully.

And it carries all of it

It also carries the entity, payroll, compliance, facilities, and hiring.

The other way

Some companies get the same control through a partner that employs the team and runs that infrastructure instead.

You want the control of a captive. Not the entity, the lease, and the registrations

A captive promises a team that’s fully yours. It also means incorporating abroad, registering for local payroll and tax, signing a lease, and hiring an HR team before your first person starts.

For many companies, the control is the point. The setup is the obstacle.

What it takes to build an offshore captive

Demand for captive-style control is mainstream. Deloitte’s 2024 Global Outsourcing Survey found 78% of organizations already use global in-house centers. It also found 70% had brought some outsourced work back in-house over the previous five years. Before a captive’s first hire, the company has to build six things:

You build
A legal entity

Incorporation in the host country, with local directors, banking, and accounting.

Payroll and tax registration

Local payroll, statutory benefits, and tax filings under host-country rules.

Labor law compliance

Employment contracts, leave rules, and termination procedures that follow local law.

Recruiting and HR

A local team to source, screen, hire, onboard, and retain people.

Local management

Leaders on the ground who run day-to-day operations and performance.

Facilities and IT security

Office space, secure networks, equipment, and data protection controls.

Who a true captive is right for

A fully owned captive tends to fit large organizations with long time horizons, stable headcount, and the appetite to run a foreign entity. For companies that want the control without carrying all six of those builds, a captive-style team is the faster route.

The captive you don’t have to build

Every block a captive needs already exists at Connext. Here’s what you’d build yourself, and what’s already running.

You

You direct the work.

You set the priorities.

You choose the people.

Your side stays the same as in a captive.

Connext
Legal entity and local registrations

Connext acts as Employer of Record in the Philippines, India, Colombia, and Mexico. No entity required to start.

Payroll, benefits, and labor compliance

Handled in-country by Connext under local law.

Recruiting

Every search starts with your role. Only the top 4% of applicants are sent to you, and you choose every hire.

HR, culture, and retention

Purpose-built workstations, real pantries, weekend events, competitive pay, and full benefits. At 90 days, 94% of team members are still on their teams.

Local management

A dedicated in-country team manager at a 35:1 employee-to-manager ratio, with weekly account reviews.

Facilities and IT security

Secure delivery centers with biometric access, encrypted workstations, and SOC 2 Type II certified controls.

Your team works only for you, inside your systems, under your direction.

You

You set the goals, KPIs, and processes, and approve every hire.

Connext

Connext employs the team as Employer of Record and runs payroll, compliance, facilities, IT, and local management.

Own it when you’re ready

If owning the center is the long-term goal, the path is built in. Connext’s build operate transfer (BOT) model lets you start with a captive-style team and move it to your own entity later.

Build

One to three months

Roles are defined, people are recruited and approved by you, and secure seats and systems are set up.

Operate

12 to 24 months

Your leaders direct the work. Connext runs HR, payroll, compliance, and infrastructure on the ground.

TransferOptional

A structured handover

When you decide, team contracts, infrastructure, and processes move to your own legal entity. Many companies never transfer and keep the partnership instead.

From the start of the build to a completed transfer typically takes 18 to 36 months.

Traditional captive vs. BPO outsourcing vs. the Connext model

FactorTraditional captiveBPO outsourcingConnext model
Who owns the entityYouThe vendorConnext employs the team; optional transfer to your entity later
Setup before the first hireEntity, registrations, lease, IT, and an HR teamContract and onboardingRole scoping and recruiting; no entity needed
Who chooses the peopleYouUsually the vendorYou, from the top 4% of applicants
Day-to-day controlFullVendor-managed, often to service levelsYou direct the work, supported by an in-country manager at 35:1
Compliance and HR burdenYoursThe vendor’sConnext’s, as Employer of Record
FlexibilityHard to scale down or exitSet by the contractMonth-to-month contracts; start with one role
Path to ownershipAlready ownedNoneOptional build operate transfer

Real situations: captive-style teams that grew into departments

Florida

Global investment management firm

A global investment firm couldn’t find highly technical finance talent in the U.S. Connext built a team of fund accountants, treasury analysts, FP&A analysts, and regulatory reporting specialists. The first team’s results led more departments and affiliated companies to bring on Connext teams of their own.

Read the case study
Salt Lake City

Managed service provider

An MSP’s previous offshore vendor left it running its teams alone. Connext assigned a full-time operations manager, took over employee support and engagement, and transitioned 28 team members from the prior provider. The team grew from 1 to 39 across the Philippines and Mexico.

Read the case study
Denver

Expense management software company

A software company started with a small pilot in 2022. The team grew to nearly 60 professionals across fulfillment, reconciliation, client support, ServiceNow, and implementation. It now supports clients in North America, Europe, and Asia.

“Their team delivers consistently, adapts quickly, and has become an integral part of our success story.”

Client delivery manager, Denver-based expense management software company
Read the case study
See more results

What companies run through a captive-style team

Dedicated offshore teams that run full functions the way a captive would, inside your systems and under your leadership. Start with one function and add the next when the first one proves out.

Finance and accounting

  • AP/AR
  • Reconciliations
  • Fund accounting
  • FP&A support
  • Payroll processing

Healthcare and revenue cycle

  • Medical billing
  • Coding support
  • Prior authorizations
  • Scheduling
  • Payer operations

Customer support

  • Inbound support
  • Help desk
  • Bilingual service
  • Account management

IT and service desk

  • Service desk
  • Technical support
  • ServiceNow administration
  • Documentation

Back office and operations

  • Data entry
  • Fulfillment
  • Audit and reconciliation
  • Order processing

How Connext builds your captive-style team

Scope the team

We map the functions, roles, systems, and reporting lines your center needs.

Recruit and select

Candidates pass multi-stage screening, then you interview the finalists and choose every hire.

Secure and onboard

Seats, equipment, and system access are set up in a SOC 2 Type II certified facility, and your team learns your processes alongside your leads.

Co-manage and grow

Your in-country team manager runs weekly account reviews and handles HR, IT, and facilities as the team grows.

One monthly fee, no upfront cost. Each team member’s monthly fee covers salary and benefits, recruiting, Employer of Record services, co-management, IT support, and facilities. Contracts are month-to-month.

Illustrative monthly role costs

RoleEntry (1–2 yrs)Mid (3–4 yrs)Senior (5+ yrs)
Accounting associate$2,018–$2,110$2,221–$2,329$2,466–$2,604
Help desk / technical support$1,982–$2,250$2,250–$2,518$2,518–$2,920
Customer support$1,755–$1,818$1,818–$1,911$1,974–$2,156

Illustrative monthly rates per full-time team member, fully loaded. Final rates depend on role scope, experience, and location.

See what your offshore center would cost

Build a team by role and headcount, then compare the fully loaded in-house cost with a Connext captive-style team. Savings vary by role, seniority, and location, so the calculator shows your number, not an average.

Open the pricing calculator

Your own offshore center, priced in minutes

Book a call with a Connext offshore team specialist. We’ll map the functions you want to bring offshore and build a cost breakdown for your exact team. We’ll also walk through what an eventual transfer would involve.

Book a captive model consult
No upfront cost to start.

Why companies choose Connext over building a captive

Captive control from the first hire

Your team works only for you, inside your systems, under your direction.

No entity to start

Connext is the Employer of Record in four countries, so you skip incorporation, registrations, and local payroll setup.

People who stay

At 90 days, 94% of team members are still on their teams, and 98% of clients stay with Connext.

Real oversight at a 35:1 ratio

A dedicated in-country team manager reviews your account every week.

Security you can audit

SOC 2 Type II certification, biometric facility access, and encrypted workstations.

A path to ownership, not a lock-in

Start with one role on a month-to-month contract, grow from a pilot to a department, and transfer the team to your own entity if you choose.

Your own offshore team, minus the build

Connext gives you the people, control, and infrastructure of an offshore captive from day one. You decide how far it goes, including whether to own it.

Talk to an offshore team specialist

Frequently asked questions

What is the difference between a captive and outsourcing?
In a captive, you own the offshore entity and employ the team directly. In outsourcing, a vendor employs the team and usually manages the work to agreed service levels. The Connext model sits between them. Connext employs the team as Employer of Record, while you direct the work and choose the people.
What does it take to set up an offshore captive?
A captive needs a registered legal entity in the host country, local payroll and tax registration, and compliance with local labor law. It also needs office space, IT security, and a local HR and management team. Those steps come before the first hire, which is why many companies start with a partner model.
Can you get captive-level control without setting up an entity?
Yes. With an Employer of Record and co-management model, your team works only for you, inside your systems, under your direction. You choose every hire and set the priorities. The partner handles the legal employment, payroll, compliance, and facilities a captive would require you to build.
Who employs the team in the Connext model?
Connext is the Employer of Record in the Philippines, India, Colombia, and Mexico. It handles employment contracts, payroll, benefits, and in-country compliance. Your company directs the day-to-day work, and team members work only on your business.
Can we move the team to our own entity later?
Yes, through build operate transfer. After an operate phase of typically 12 to 24 months, the team can move to your own legal entity. Contracts, infrastructure, and processes transfer through a structured handover. Transfer is optional, and many companies keep the partnership instead.
Is a captive model right for a mid-size company?
A fully owned captive usually fits large organizations with long time horizons and the appetite to run a foreign entity. Mid-size companies often get more value from a captive-style team. They get the same control and dedicated people without the setup, plus the option to own later.
Is a captive the same as a global capability center?
They overlap. A global capability center (GCC) is a company's own offshore center that delivers specialized work for the parent organization, and many GCCs are captives. Today, more companies set up GCC-style teams with an external partner instead of building everything in-house.
Do I need to already have staff to get started with Connext?
No. Most clients start from zero: Connext recruits, hires and onboards the team for you, and you keep control of how they work. If you already have contractors or staff in place, we transition them instead so you do not lose the people you trust.
What security measures are in place at Connext facilities?
Teams work from more than 50,000 sq ft of secure, purpose-built workspace with 24/7 managed IT support, secure VPN access and full technology integration.
What kind of support is available after my team is up and running?
Your Operations Manager stays with the account, running weekly performance reviews and retention management that keeps annual attrition around 20% versus a 50% industry standard.