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This paper aims to review research on outsourcing of knowledge processes to establish the current body of knowledge and, on this basis, to identify gaps in our understanding. This action will justify further research activities and clarify where no future research is currently needed.

The study consists of a systematic review of 24 refereed empirical articles on outsourcing of knowledge processes.

Five themes were identified: outsourcing of knowledge processes, outsourcing and collaborative agreements between knowledge-based firms, factors affecting successful knowledge outsourcing, knowledge management and knowledge outsourcing and other outsourcing issues. There seems to be a lack of understanding concerning knowledge process outsourcing.

This study may not have enabled a complete coverage of all empirical articles in the field of knowledge process outsourcing. Yet, it seems reasonable to assume that the review process covered a large share of studies available.

To the best of the authors’ knowledge, no systematic literature review on this topic has previously been published in academic journals.

With an increase in global outsourcing, there is a need for risk mitigation strategies for outsourcing partner selection. Most outsourced services are getting commoditized, making it difficult to clearly differentiate capabilities of service providers. Also, the move towards knowledge process outsourcing (KPO) services is an area where the risks of failure are perceived to be higher. Since the knowledge dimension is a critical one for any outsourced activity, an objective assessment of knowledge gaps is important in the overall process of evaluation of the external provider. This paper aims to address the issues involved.

The paper builds the linkage between the measurability of the knowledge dimension and outsourcing project success through a set of propositions. It proposes a formal process of “knowledge gap assessment” as an input to assessing partner viability. It also identifies two important dimensions that are specific to an outsourcing relationship. Finally, the paper outlines a conceptual framework that takes these dimensions into account through a process of benchmarking using role simulations that could be used as a generic tool for performing such an assessment.

Such an assessment can help to classify prospective service providers as exhibiting low‐, moderate‐ or high‐knowledge gaps in different knowledge categories. Depending on the cost of bridging these gaps the associated risks can be classified as low, medium or high, facilitating appropriate managerial decisions.

This paper proposes a conceptual model and a set of propositions which will need to be tested and refined through further empirical research.

The framework can be a useful tool for partner selection by firms who are looking to outsource activities. A simulation‐based benchmarking approach is likely to provide a more objective assessment of a firm's knowledge‐based capability, both when compared to the parent (outsourcing) organization as well as other short‐listed service providers.

This paper fulfils an identified need for minimizing risk in both business process outsourcing as well as KPO projects by focusing on the knowledge dimension and offers a practical framework to enable the same.

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.

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.

The paper finds that BPM and KM could reduce risks of outsourcing and enable a BPO lifecycle.

A contemporary case of IEI Company's outsourcing practices with one of its subsidiaries, Irancell, is discussed as an illustrative example.

The paper demystifies BPM and KM could enable BPO via coordinating BPM, KM, and BPO lifecycles.

In knowledge outsourcing, external knowledge providers, rather than in‐house experts, are contracted to provide services which result in the production of knowledge‐intensive assets for the organisation. The purpose of this paper is to present the notion of knowledge outsourcing as an alternative strategy for knowledge management.

A case study research method is adopted to examine the knowledge outsourcing processes and activities at a for‐profit higher education enterprise that has been successful in using a knowledge outsourcing approach in the development of its online courseware.

A general process model of knowledge outsourcing is developed from the case data. The paper also draws attention to three conditions under which knowledge outsourcing may be a suitable strategy for knowledge management. Additionally, two main areas of knowledge outsourcing risk, which are related to the quality of knowledge services and the effort required to manage the outsourcing relationship, have been identified.

Given that the study involves only a single case, the findings may likely be influenced by the peculiarities of the case, including the nature of the industry, availability of external experts and top management support. Going forward, a more refined theory for knowledge outsourcing can be developed through further empirical validation with more cases.

The notion of knowledge outsourcing is introduced to managers who wish to exploit external sources rather than relying on internal capability for knowledge creation.

This paper represents one of the earliest efforts to introduce the notion of knowledge outsourcing to the knowledge management community.

While strategic outsourcing decisions are crafted by senior executives, they are executed by middle managers and staff who may not share the vision or enthusiasm of their senior leadership team. The purpose of this paper is to provide a deep understanding of the effects of outsourcing on one of those stakeholder groups – the client project managers – responsible for the implementation of outsourcing strategies, and to identify practices to better empower and enable them.

Interviews with 67 client project managers in 25 organizations responsible for integrating suppliers into project teams.

Client project managers report 27 effects of outsourcing on their roles, including six positive effects and 21 negative effects.

Senior executives who implemented the following practices had more success with their outsourcing decisions: provide enough resources to implement the sourcing strategy, be willing to change internal work practices, build social capital with key supplier executives and seek independent assessment of sourcing strategy effectiveness.

The paper presents an original framework to categorize the effects of outsourcing on client project managers. The framework addresses six areas of concern: organizational support, project planning, knowledge transfer, process standards, managing work and managing people. The paper identifies four practices senior executives use to align and empower their employees to deliver the expected business benefits from strategic outsourcing decisions.

The aim of this paper is to go beyond the “What to outsource” and “To Outsource or Not” debate. Recognizing outsourcing as a fast growing reality that firms have to depend upon, the paper concerns itself with optimal management of outsourcing arrangements through the practice of “outsourcing capability”. It argues that outsourcing failure can be mitigated if organizations see outsourcing as an “ongoing activity” to be managed as opposed to treating it as a one-time opportunistic “act”.

Based on the review of existing literature and drawing upon recent instances of outsourcing successes and failures, the paper develops a conceptual framework which divides various organizational processes into four different classes. It delineates the varied aspects of “outsourcing capability” that a firm would need to use to manage these varied class of processes as and when they are outsourced.

There is no “one-size-fits-all” approach to managing outsourced processes. Different processes require emphasis on different aspect of outsourcing capability if outsourcing is to deliver the envisaged benefits.

The traditional focus in outsourcing literature has been on the core/non-core process with the recommendation to keep core processes in-house and outsource the non-core processes. This distinction can be transitory and hence detrimental in the era of hyper-competition. I argue that firms should instead focus on developing and refining aspects of “outsourcing capability” relevant to the varied class of processes that they wish/need to outsource.

The purpose of this paper is to develop a framework that incorporates both firm- and process-level factors for understanding location distance choice in the business process outsourcing (BPO) decision.

The research involved undertaking in-depth case study analysis of a number of BPO decisions in six German companies, and employing transaction cost economics (TCE) and the resource-based view (RBV) as a theoretical basis.

The findings have shown that existing literature in the operations management (OM) literature does not provide a complete understanding of the complexities of location distance choice in the BPO decision. This decision requires an understanding of a range of factors at both the firm- and process-level. The findings here enhance the understanding of how these factors interact to influence the potential distance options.

The findings have shown how organisations can influence the factors that affect the location distance choice including modularising business processes, developing outsourcing capabilities, and supplementing internal skills in areas such as cultural management and performance monitoring.

This is one of the first studies in the OM field to analyse how organisations make the decision in relation to local, nearshore, and offshore location distance options. The paper has highlighted the importance of OM concepts such as performance management and continuous improvement to this phenomenon, and the paper has offered a number of important areas for further research.

This paper aims to present findings on outsourcing practices in small service firms in Iceland, where the prime focus is on knowledge-intensive service firms.

To gain information on the scope and reason for outsourcing, telephone and online surveys were used. In total, 802 firms participated in the surveys, which were conducted in the period 2009-2018.

The results show that knowledge-intensive firms outsource far more than other service firms and are also more likely to have an outsourcing strategy. The grounds for increased outsourcing are cost reduction and strategic reasons, such as a focus on core competency and the search for external knowledge. In comparison with other firms, knowledge-intensive firms are increasingly outsourcing cleaning, security services, canteen and transportation, IT processes, human resource management, training and consulting. Additionally, managers of these firms select suppliers more on the basis of cost and quality. They also realize more cost savings as a consequence of outsourcing. Outsourcing had a very limited effect on employment in the firms, while cost reduction was achieved in 48.3 per cent of the firms involved.

The findings are in line with the resource-based theory and, interestingly, this is not limited to knowledge-based firms, but to a large portion of service firms as well.

This is the first in-depth study on outsourcing patterns in knowledge-intensive firms, which uses theoretical classification in empirical analysis.

Offshore outsourcing offers competitive advantages when goods and services are produced economically and with acceptable or superior quality by suppliers located outside a firm's home country. The purpose of this paper is to focus on India as a destination for offshore outsourcing of services and the challenges it faces in maintaining its leadership in this area. The paper discusses the growth of services outsourcing and the economic and environmental forces that have contributed to the outsourcing of high‐end services, also known as knowledge process outsourcing (KPO).

This article surveys the literature of offshore outsourcing and identifies strategic drivers and options that can help India to grow and consolidate its position as an exporter of services and build long‐term competitive advantages in its relationships with global partners. To understand why nations gain competitive advantage in certain industries, Porter's “diamond” model is utilized as a broad framework for examining policies and national strategies that can sustain India's competitive advantage in outsourcing of knowledge‐based services. The paper discusses India's current and prospective assets and liabilities that correspond to the model's four components.

The article discusses India's competitive edge as a leading supplier of knowledge‐based services and proposes a model for sustaining this edge. The model proposes key policy steps to move from the current position (e.g. supplier of business process outsourcing services) to a role of knowledge leader by providing advanced value added services to global clients. This model suggests ways in which a supplier nation can gain leverage in the value chain.

The article is conceptual, not empirical. Public and corporate policy implications are presented to strengthen India's competitive advantages in outsourced services.

The article presents a strategic roadmap with policy implications that can help move India up the value chain from being primarily a destination for low‐end business process outsourcing (BPO) to that of a co‐equal, high value‐adding partner or principal who offers knowledge leadership in the design and delivery of services for global markets.

The article discusses a nation's technical strengths, as well as cultural and infrastructure weaknesses, that can contribute to volatility as a global outsourcing leader. The article also presents strategies that can reduce a nation's vulnerabilities to competitive actions.