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1 – 10 of over 20000K.B.C. Saxena and Sangeeta S. Bharadwaj
The purpose of this paper is to discuss business processes as building‐blocks of organisational capabilities and outsourcing of business processes as a viable management approach…
Abstract
Purpose
The purpose of this paper is to discuss business processes as building‐blocks of organisational capabilities and outsourcing of business processes as a viable management approach to building strategic organisational capabilities.
Design/methodology/approach
The paper develops a conceptual framework based on “strategic partnering” to successfully implement “global sourcing” of organisational capabilities and validates this framework using multiple case studies research.
Findings
The paper identifies business process management, relationship management and the outsourcing value propositions as the key dimensions for business process outsourcing (BPO) success.
Research limitations/implications
The paper is based on case studies of seven European clients and ten Indian service providers of BPO services. A larger survey of BPO clients and service providers may further strengthen the proposed framework and make the findings more conclusive.
Practical implications
The proposed framework helps both the BPO client and the service provider organisations in understanding the critical role of relationship management in realising the intended BPO service outcomes. It also helps the BPO clients and the service providers to understand the risk and business value implications of BPO value proposition.
Originality/value
The paper addresses a dearth of literature on BPO service provision and establishes the need for dyadic study of BPO services from both the client and the service provider perspective simultaneously for understanding the dynamics of this emerging service sector.
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E. Mahmoodzadeh, Sh. Jalalinia and F. Nekui Yazdi
Nowadays, outsourcing has proved to be an enterprise management strategy in the face of globalization and growing competition. The decision to outsource a business process for any…
Abstract
Purpose
Nowadays, outsourcing has proved to be an enterprise management strategy in the face of globalization and growing competition. The decision to outsource a business process for any organization has far‐reaching consequences and risks. The purpose of this paper is to analyse the impact of business process management (BPM) and knowledge management (KM) on reduction of outsourcing risks and pitfalls.
Design/methodology/approach
Outsourcing models and frameworks are reviewed to find the main risks in outsourcing. One of the most important groups of risks is emergent KM issues arising from widespread outsourcing. A strategic KM approach can reduce this risk. Communication and coordination difficulties between outsourcing partners is another group of risks that could be decreased by using the BPM approach in organizations. Then the contribution of a business process outsourcing (BPO) framework based on BPM and KM lifecycles is tested.
Findings
The paper finds that BPM and KM could reduce risks of outsourcing and enable a BPO lifecycle.
Practical implications
A contemporary case of IEI Company's outsourcing practices with one of its subsidiaries, Irancell, is discussed as an illustrative example.
Originality/value
The paper demystifies BPM and KM could enable BPO via coordinating BPM, KM, and BPO lifecycles.
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Tesfaye Hailu and Abdella Kosa Chebo
To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative…
Abstract
Purpose
To examine the development of research into the relationship between business process outsourcing (BPO) and innovation, a bibliometric methodology utilizing quantitative analytical methodologies was used. With the aid of a visualization analysis of scientific publications, this study also assessed the state of BPO and innovation practices.
Design/methodology/approach
Using the Web of Science database, articles on BPO and innovation that published between 1992 and 2022 were retrieved. Records that had been extracted were examined in terms of publication year, nation, journal, subject area, authors and affiliations with organizations. The research on acupuncture for pain relief was visualized using the VOSviewer application.
Findings
An analysis of 219 original and review papers found that during the past 30 years, the overall number of publications has fluctuated constantly. The London University, the Copenhagen Business School and the London School of Economics were the institutions that produced the most articles in this topic. The three main categories of research that emerged from a network analysis based on the co-occurrence of keywords are innovation, outsourcing and performance.
Practical implications
A BP-innovation model must be created, and BPO must go beyond operational duties to incorporate management-wide shared strategic decisions in order to ensure improved performance of the firms. BPO enables a company's management to share knowledge and expertise about the strategic difficulties of outsourcing. A variety of technological and non-technological resources must also be considered when integrating an information technology (IT) infrastructure into BPO decisions in order to achieve greater performance.
Originality/value
Validity of the paper can be justified by it contribution to the existing knowledge. First, linking BPO and innovation – by integrating the arguments of various academics, the study unifies the disparate components and contentious discussions in the relationship between BPO and innovation. Second, this study highlights a research trend, significant studies, relevant terms and concepts in the real world. Third, the study provides future researchers with a tip for statistically analyzing BPO, particularly in light of innovation.
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Rakesh Agarwal and Nonika Bajaj
The decision to manage an outsourced project is easy but to provide client satisfaction is a difficult process. Outsourcing has been broadly accepted due to the extensive and…
Abstract
Purpose
The decision to manage an outsourced project is easy but to provide client satisfaction is a difficult process. Outsourcing has been broadly accepted due to the extensive and useful business need they provide, even in those situations where the planning/decision support paradigm provided by the system poorly fits the business. The purpose of this paper is to propose an effective modeling methodology for managing the process of outsourced projects for the clients.
Design/methodology/approach
The paper proposes a cimosa, O3ML and business outsourcing process using DMADV methodology ‐‐ an effective modeling methodology for managing the process of outsourced projects for clients.
Findings
The hybrid governance structure consists of inter‐organizational coordination mechanisms, inter‐organizational systems and social control. Companies that wish to offshore their business process should select the service providers that can facilitate setting up such hybrid governance structure.
Research limitations/implications
The limitations of managing the outsourced paradigm (IT or business process), i.e. redesigning work and assigning responsibilities, need to be clearly recognized if they are to be dealt and delivered with in an effective manner.
Practical implications
Six sigma is a business process improvement strategy, which essentially checks that the performance of the business is according to the needs of the client. The end‐user of a product or service is a client and thus the deliverable of a project should be according to the needs of the client.
Originality/value
The paper is of value in proposing an effective modeling methodology for managing the process of outsourced projects for clients.
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Bhimrao Ghodeswar and Janardan Vaidyanathan
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.
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.
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Examines outsourcing various functions such as internal audit and suggest caution should be the watchword. Proposes that certain businesses can be improved by outsourcing, in that…
Abstract
Examines outsourcing various functions such as internal audit and suggest caution should be the watchword. Proposes that certain businesses can be improved by outsourcing, in that they may support the overall business. Warns that outsourcing’s objective should be to free up management and instil confidence in it. Looks at the evolution of outsourcing and how it has reached today’s popular climate. Concludes that the impact on risk may, unless managed properly, be much higher.
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Maqsood Ahmad Sandhu, Ahm Shamsuzzoha and Petri Helo
The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is…
Abstract
Purpose
The purpose of this paper is to deal with the importance and obstacles of outsourcing strategy in project business in terms of product development perspectives. This strategy is intrinsically analyzed and evaluated with respect to the strategic business environments.
Design/methodology/approach
The objective of this research is to analyze the advantages and limitations of the outsourcing that have been identified in prior studies. This research has attempted to investigate the performance implications of outsourcing strategies in terms of theoretical considerations and implementation perspectives.
Findings
In this study, the authors have presented a general overview of outsourcing strategies in terms of both light and dark sides of this approach. Various driving forces of outsourcing strategy along with critical success factors are articulated within project to product development perspectives.
Research limitations/implications
Future research could be continued to measure various performance variables such as productivity, sales, revenues, career opportunities, manifest in power struggles, change jobs, change organizational cultures, etc. in multiple case companies, which affect with the success or failure of outsourcing arrangements.
Practical implications
The term outsourcing is nowadays a widely known business strategy, where manufacturing firms share partly or fully of their production process with outside organizations or suppliers. The research approach as articulated within this paper would be beneficial for project business organizations and specially the product designers and project managers for planning and developing their strategic business potentials with respect to outsourcing and in-sourcing decisions.
Originality/value
In this paper a high-level decision-making model for outsourcing and a cause and effect type framework are demonstrated with a view to ease the decision-making process for the organizations managers.
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Ronan McIvor, Paul Humphreys, Alan McKittrick and Tony Wall
The purpose of this paper is to assess the applicability of a number of performance management techniques in the outsourcing process, in a business services context.
Abstract
Purpose
The purpose of this paper is to assess the applicability of a number of performance management techniques in the outsourcing process, in a business services context.
Design/methodology/approach
Using a structured outsourcing framework, performance management techniques are applied in a financial services organisation over a three‐year period. A case study approach is employed to undertake the research, which involved the research team engaging directly with the organisation throughout the outsourcing process.
Findings
Applying performance management techniques in the outsourcing process is challenging in a number of areas including comparison difficulties, incomplete information and inadequate performance management systems. However, benchmarking and cost analysis are useful mechanisms for improving performance, and reducing costs via internal process redesign or outsourcing. Performance management techniques can be employed to remove inefficiencies from processes both prior to outsourcing and during the outsourcing relationship.
Research limitations/implications
There are a number of limitations of the research approach including gaining full participation from the company, having access to all relevant company information and time constraints.
Practical implications
The research findings highlight the implications of applying performance management techniques in a practical outsourcing setting. As well as identifying the challenges, the research highlights the value of integrating critical success factors, cost analysis, benchmarking and other performance management techniques into the outsourcing process.
Originality/value
There are few studies in the literature of applying performance management techniques in the outsourcing process at an operation's level. The findings have identified the challenges and benefits of performance management techniques in the outsourcing process. The findings have highlighted the importance of operations management concepts such as performance management, operations strategy, business improvement and process re‐design to services outsourcing, and the need for further research in this area by operations management scholars.
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Jane C. Linder, Martin I. Cole and Alvin L. Jacobson
Outsourcing is rapidly evolving beyond the simple reengineering of support processes. For many companies, outsourcing partnerships are being used to achieve rapid, sustainable…
Abstract
Outsourcing is rapidly evolving beyond the simple reengineering of support processes. For many companies, outsourcing partnerships are being used to achieve rapid, sustainable improvement in enterprise‐level performance. More specifically, in addition to the baseline value of reducing costs and offloading unimportant activities, partnership with an outsourcing vendor can be used to gain access to competitive skills, improve service levels, and increase the company’s ability to respond to changing business needs. To classify an outsourcing program as truly “business transformation”, it must change the way the client company works by using outsourcing to achieve a rapid, sustainable radical improvement in performance – as measured by dramatic growth, market repositioning or rapid diversification. The resulting performance improvement can be measured in dramatic gains in share price, market position and return on capital. In short, it is a comprehensive approach that seeks to create new capabilities and then use them to achieve a clear strategic objective. Business transformation outsourcing achieves results by integrating five essential process components: top‐level leadership, bold strategic agenda, innovative financial structure, outsourcing to transform critical processes, and focus on enterprise outcomes.
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Arjun K. Pai and Subhajit Basu
Offshore outsourcing of non‐core business process has rapidly evolved as a ubiquitous organisational phenomenon. However, failure to follow a clear, systematic and effective…
Abstract
Purpose
Offshore outsourcing of non‐core business process has rapidly evolved as a ubiquitous organisational phenomenon. However, failure to follow a clear, systematic and effective outsourcing strategy to evaluate threats, uncertainties and numerous imponderables can cause global enterprise businesses major setbacks. The reasons for such setback could be largely due to lack of core competency, careful legal planning and due diligence to operating models associated with an outsourcing initiative. This paper attempts to collate and exemplify the distinct qualifying processes accommodating contractual and intellectual property rights and provide a worthwhile debate on intricate legal considerations when structuring multi‐jurisdictional outsourcing deals.
Design/methodology/approach
The paper presents a comparative analysis of strategic legal and management framework by weighing the risks and evaluating the threats which would assist the decision making process of firms when selecting an appropriate offshore partner to carry out their IT‐development work.
Findings
Importance of legal intervention and due diligence to service agreements is further elevated as, at every phase of an outsourcing arrangement, compliance issues and contractual obligations can affect the success of an enterprise customer and its relationship with their outsourcing service provider.
Research limitations/implications
The authors suggest that an exhaustive qualitative and quantitative industry specific research analysis be conducted in order to better define the principles and standards governing sub‐contracting arrangements.
Practical implications
A broader exposure to the strategic management and regulatory framework might provide firms with vantage points from which they could assess and identify new opportunities, evaluate threats and adopt effective risk mitigation strategies. Compliance to security standards and safeguard of information acquisition, analysis and usage should emerge as the mainstream strategy for outsourcing.
Originality/value
The paper offers insights and an overview of management and legal issues in the context of offshore technology outsourcing.
Details