Business process outsourcing: an approach to gain access to world‐class capabilities

Bhimrao Ghodeswar (National Institute of Industrial Engineering, Mumbai, India)
Janardan Vaidyanathan (National Institute of Industrial Engineering, Mumbai, India)

Business Process Management Journal

ISSN: 1463-7154

Publication date: 8 February 2008

Abstract

Purpose

This paper sets out to review the different types of outsourcing, its drivers and process, and to identify world‐class capabilities that host organisations can leverage.

Design/methodology/approach

This paper is primarily based on a review of literature.

Findings

Outsourcing helps the organisation to achieve higher levels of value creation for the final customer. Drivers of outsourcing emanate from organisational initiatives, improvement focus, financial and cost objectives, or growth objectives. A wide range of core and non‐core critical business processes are increasingly being outsourced covering a large spectrum of sectors and operations, enabling host organisations to gain access to world‐class capabilities.

Originality/value

This paper identifies critical drivers of outsourcing and the process by reviewing available literature in this area. In doing this an attempt is made to find answers to some fundamental questions. What are the main types and drivers of outsourcing? What are the different phases in the process of outsourcing? This paper discusses in detail the significant drivers and process of outsourcing; and the world‐class capabilities accessible by the host organisation. Case studies are used to illustrate these aspects further.

Keywords

Citation

Ghodeswar, B. and Vaidyanathan, J. (2008), "Business process outsourcing: an approach to gain access to world‐class capabilities", Business Process Management Journal, Vol. 14 No. 1, pp. 23-38. https://doi.org/10.1108/14637150810849382

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Publisher

:

Emerald Group Publishing Limited

Copyright © 2008, Emerald Group Publishing Limited

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