What is a captive shared service center?

Captive Shared Service Center is a center for shared services within an organization. It is the entity accountable for executing and handling particular operational tasks, like human resources, IT, legal, compliance, accounting, payroll, purchasing, and security. A captive shared service center is usually based in a different geographical location with lower costs in mind and is a spin-off of the corporate services to distinguish all operational tasks from the corporate headquarters, which has to concentrate on leadership and corporate governance type of role.