An Empirical Analysis of the Impact of Information Capabilities Design on Business Process Outsourcing Performance

Abstract

Organizations today outsource diverse business processes to achieve a wide variety of business objectives ranging from reduction of costs to innovation and business transformation. We build on the information processing view of the firm to theorize that performance heterogeneity across business process outsourcing (BPO) exchanges is a function of the design of information capabilities (IC) that fit the unique information requirements (IR) of the exchange. Further, we compare performance effects of the fit between IR and IC across dominant categories of BPO relationships to provide insights into the relative benefits of enacting such fit between the constructs. Empirical tests of our hypotheses using survey data on 127 active BPO relationships find a significant increase (decrease) in satisfaction as a result of the fit (misfit) between IR and IC of the relationship. The results have implications for how BPO relationships must be designed and managed to realize significant performance gains. The study also extends the IPV to identify IC that provide the incen tives and means to process information in an interfirm relationship.

Strategic innovation through outsourcing: The role of relational and contractual governance

“…8 We attempted additional controls including industry, country and size of the company, but none of them had a significant effect on the outcomes; in order to avoid over-saturating the regression model we do not include them in further analysis. 9 In line with IS outsourcing literature, we have distinguished between IT and business process outsourcing (Lacity et al 2011, Lacity et al 2009Mani et al 2010). IT outsourcing (ITO) is defined as the sourcing of Information Technology services through an external third party (Lacity et al 2011).…”

“…From a client perspective, the main drivers of ITO are the ability to focus on core competencies of the firm and achieve reduction in costs. BPO, on the other hand, offers numerous objectives ranging from cost reductions to innovation and business transformation (Mani et al 2010). It flows from this that client firms expect innovation to be delivered in the case of BPO.…”

An Empirical Analysis of the Contractual and Information Structures of Business Process Outsourcing Relationships

“…In contrast to information technology outsourcing (ITO) that involves the management of technological applications, infrastructure, and services, BPO involves the management of business processes that draw upon these technologies. Key inputs and outputs of business processes are information, and their successful execution often requires information coordination between process workers (Mani et al 2007). Furthermore, the dynamic relationship between the business process and the business environment may result in greater rates of information change in the task environment on an ongoing basis than in ITO.…”

Indian Contribution in Information Science and Library Science Research during 1991-2015: A Bibliometric Analysis

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