Business Process Outsourcing: The Hysteresis Effect and Other Lessons

Rouse, Anne C.; Corbitt, Brian

doi:10.1007/978-3-540-34877-1_20

Cited by 9 publications

(10 citation statements)

References 12 publications

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“…of value creation through BPO, evidenced by the large number of firms that cite significant negative experiences with their outsourcing projects, 2 and emergent research (e.g., Rouse and Corbitt 2006) highlighting the intrinsic complexity and high failure rate of BPO initiatives. What, then, drives BPO performance?…”

Section: Introductionmentioning

confidence: 99%

“…Although BPO is increasingly viewed by modern organizations as critical to competitive success, there is little empirical research that incorporates its distinctive nature and form. Rouse and Corbitt (2006) find that during the period January 1980 to June 2005, only 11 scholarly or peer-reviewed articles reported empirical research on BPO. They lament that "the absence of independent empirical research means that decision makers choosing whether to outsource a business process have to proceed on faith" (Rouse and Corbitt 2006, p. 586).…”

Section: Introductionmentioning

confidence: 99%

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

Mani

Barua

Whinston

2012

Information Systems Research

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T he emergence of information-intensive business process outsourcing (BPO) relationships calls for the study of exchange performance beyond traditional considerations of the contractual structure that facilitates cooperative intent to include the information structure that facilitates the mutual exchange of information to enact cooperative intent and coordinate actions between the user firm and the service provider. Yet, there has been little analysis of the drivers and performance effects of the information structure of BPO relationships, including its linkages to the underlying contractual structure. This study integrates perspectives in neo-institutional economics and information processing to develop and test the theoretical argument that the extent of use and performance effects of the information structure of the BPO relationship are greater in time and materials BPO contracts than in fixed-price BPO contracts. Survey data on 134 BPO relationships provide empirical support for our hypotheses. The synergistic impact of incentives and information on BPO performance emphasizes that their joint assessment is necessary to enhance the explanatory power of extant theories of organization. This result also has implications for achieving maximum benefits from complex BPO arrangements that are more likely to be characterized by time and material contracts.

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Section: Introductionmentioning

confidence: 99%

Section: Introductionmentioning

confidence: 99%

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

Mani

Barua

Whinston

2012

Information Systems Research

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“…Millar [6], as cited in Dibbern et al [3], defines BPO as a relationship in which the third party is responsible for the entire business function of the client company. Other authors argue that BPO needs a more concrete definition, one that emphasizes the strong presence of IT in the process, as opposed to bigger processes that also include some IT-enabled task [7]. Mani et al [8] also make a clear distinction between the outsourcing of predominantly physical processes and BPO, which consists of informational tasks.…”

Section: It and Business Process Outsourcingmentioning

confidence: 99%

Outsourcing of Disaggregated Services in Cloud-Based Enterprise Information Systems

Asatiani

Apte

Penttinen

et al. 2014

2014 47th Hawaii International Conference on System Sciences

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In this paper, we examine outsourcing of disaggregated information-intensive services. Drawing on the theoretical streams of Global Information-Intensive Service Disaggregation and Transaction-Cost Economics, we formulate our research model to understand the phenomenon of disaggregation in the context of cloud computing. The model encompasses frequency, asset specificity, uncertainty, information intensity, and need for customer contact as characteristics of tasks that we use to explain the outsourcing of disaggregated services.We are especially interested in understanding the interplay between these characteristics and the increasingly popular cloud-based systems. Our results partially support previous research on the effects of characteristics on outsourcing. The main finding of the paper is impact of the cloud-based information systems on the interaction of these characteristics.

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“…However, scarcity of academic research means that decision makers have to proceed on faith, or rely on information from outsourcing vendors and consultants (who may not be disinterested parties). This can lead to significant risk because reversing a poor strategic choice involves major switching costs and will be far slower than the path into the initial outsourcing decision (Rouse and Corbitt, 2007; Levina and Su, 2008).…”

Section: Introductionmentioning

confidence: 99%

“…Despite the growth of offshore BPO, an examination of academic literature reveals a number of gaps in current theory (Rouse and Corbitt, 2007; Hirschheim et al , 2008). Accordingly, the motivation for this research is to contribute towards development of a management framework for offshore BPO.…”

Section: Introductionmentioning

confidence: 99%

Offshore BPO at large captive operations in India

Penter

Pervan

Wreford

2009

Information Technology &Amp; People

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Purpose-The motivation for this research is to contribute towards development of a management framework for offshore Business Process Outsourcing (BPO). Design/methodology/approach-This paper utilises longitudinal case studies to identify success factors in managing offshore Business Process Outsourcing (BPO) via the captive model (i.e. wholly-owned subsidiary). Findings-Success in offshore BPO is based on a combination of cost savings, technical service quality and strategic issues, is specific to business context and will change over time. Choice of engagement model (e.g. captive operation or armslength contracting) is an important success factor. Advantages of captive centers arise from higher levels of relationship quality, trust and collaboration effectiveness. Research limitations/implications-Focused on two global companies in two industry sectors (airlines and telecommunications), and both have adopted one particular BPO model (i.e. captive operation). Originality/value-The paper contributes to scarce literature on offshore captive BPO operations, the most common but also least researched engagement model. The findings have practical implications for managers designing offshore BPO strategy.

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Business Process Outsourcing: The Hysteresis Effect and Other Lessons

Cited by 9 publications

References 12 publications

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

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

Outsourcing of Disaggregated Services in Cloud-Based Enterprise Information Systems

Offshore BPO at large captive operations in India

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