The impact of process standardization on business process outsourcing success

Wüllenweber, Kim; Beimborn, Daniel; Weitzel, Tim; König, Wolfgang

doi:10.1007/s10796-008-9063-x

Cited by 125 publications

(74 citation statements)

References 65 publications

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“…Finally a separate survey was conducted to assess multi-item measures along with the definitions to determine whether the definitions represented the concepts adequately. The multi-item measures used were: complexity (Aubert et al, 1996), asset specificity (Bahli and Rivard, 2005), business-related skills (Fink andNeumann, 2009, technical skills (Tippins andSohi, 2003), and measurement problems and standardization (Wullenweber et al, 2008). Sixty IS managers completed this separate survey.…”

Section: Transaction-level Variablesmentioning

confidence: 99%

A multi-level investigation of information technology outsourcing

Aubert

Houde

Patry

et al. 2012

The Journal of Strategic Information Systems

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This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics -uncertainty and knowledge intensity -are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision. This study proposes and tests a model of the information technology (IT) outsourcing decision that includes antecedents of both transaction costs and production costs. Production costs show the most robust influence on governance. Skills required to execute the activities, interdependence between the activities, and firm-level characteristics -uncertainty and knowledge intensity -are the main explanatory variables of the decision. Transaction-level uncertainty is the only transaction cost variable found to influence the decision.

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Section: Transaction-level Variablesmentioning

confidence: 99%

A multi-level investigation of information technology outsourcing

Aubert

Houde

Patry

et al. 2012

The Journal of Strategic Information Systems

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“…This means that, when harmonizing processes, differences between the process variants for which there is no particular reason should be resolved, while differences for which there is a reason can remain. Different conceptualizations of process harmonization have been adopted in the literature (Fernandez and Bhat, 2010;Schäfermeyer et al, 2010;Wüllenweber et al, 2008). A precise specification of what we mean by process harmonization is dependent on the research stream that we decide to adopt.…”

Section: Application Consolidation Process Harmonization and Relatedmentioning

confidence: 99%

“…In contrast, the second stream distinguishes differences in goals between harmonization and standardization. In this stream, the goal of process standardization is to achieve uniformity of process activities across the value chain and across firm boundaries (Wüllenweber et al 2008(Wüllenweber et al , pp.2011(Wüllenweber et al -2012, while the goal of harmonization is to align similar processes based on a single, focused business objective (Hufgard and Gerhardt 2011, p.169).…”

Section: Application Consolidation Process Harmonization and Relatedmentioning

confidence: 99%

Measures of process harmonization

Romero

Dijkman

Grefen

et al. 2015

Information and Software Technology

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Context: Many large organizations juggle an application portfolio that contains different applications that fulfill similar tasks in the organization. In an effort to reduce operating costs, they are attempting to consolidate such applications. Before consolidating applications, the work that is done with these applications must be harmonized. This is also known as process harmonization. Objective:The increased interest in process harmonization calls for measures to quantify the extent to which processes have been harmonized. These measures should also uncover the factors that are of interest when harmonizing processes. Currently, such measures do not exist. Therefore, this study develops and validates a measurement model to quantify the level of process harmonization in an organization. Method:The measurement model was developed by means of a literature study and structured interviews. Subsequently, it was validated through a survey, using factor analysis and correlations with known related constructs. Results:As a result, a valid and reliable measurement model was developed. The factors that are found to constitute process harmonization are: the technical design of the business process and its data, the resources that execute the process, and the information systems that are used in the process.In addition, strong correlations were found between process harmonization and process standardization and between process complexity and process harmonization. Conclusion:The measurement model can be used by practitioners, because it shows them the factors that must be taken into account when harmonizing processes, and because it provides them with a means to quantify the extent to which they succeeded in harmonizing their processes. At the same time, it can be used by researchers to conduct further empirical research in the area of process harmonization.

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“…For the determinants of outsourcing outcomes, which can help inform the second research question, the empirical BPO review by Lacity et al, (2011) found a positive correlation between contractual governance and outcomes (e.g., Handley & Benton 2009;Niranjan, Saxena, & Bharadwaj, 2007;Wullenweber, Beimborn, Weitzel, & Konig, 2008) as predicted by Transaction Cost Economics and between relational governance and outcomes as predicted from sociology theories. In particular, higher values for all these relational governance variables were associated with better BPO outcomes: communication, effective knowledge sharing, partnership view (treating the provider as a trusted partner rather than as an opportunistic vendor) and relationship specific investments (e.g., Kim & Kim, 2008;Mahmoodzadeh et al, 2009;Sen & Shiel, 2006).…”

Section: Outsourcing Decisions Andmentioning

confidence: 99%

“…In 15 cases of missed provider margins, 12 clients (80%) reported poor outsourcing performance. In 70 cases when the provider met its target margins, only 19 clients (27%) reported poor outsourcing performance (Kern et al, 2002 (Handley & Benton, 2009;Lacity et al, 2011;Niranjan et al , 2007;Wullenweber et al, 2008 (Babin & Nicholson, 2012;Porter & Kramer, 2006;Porter Kramer, M. 2011;Viviers & Eccles, 2012) and is clearly a priority for two of the case study firms. The clients and providers from these two cases described their CSR practices by explaining how their BPO relationships transform the lives of their employees and the communities in which they operate.…”

Section: Lessons For Western-based Client Firmsmentioning

confidence: 99%

South Africa's business process outsourcing services sector: Lessons for Western-based client firms

Lacity

Willcocks

Craig

2014

SAJBM

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Since 2008, South Africa has become one of the world's upcoming offshore destinations for business process outsourcing (BPO), a market estimated to be worth $US 182 billion globally by 2013. Western-based client firms evaluating South Africa as a BPO destination must consider the country's relative value against alternative locations. Client firms also have a number of engagement models from which to choose, inclucling outsourcing, erecting a captive centre, or acquiring an existing BPO business. The research finds that, for the UK, US, and Australian client companies in this study, South Africa's value proposition is not just based on costs as other locations are often cheaper. South Africa's value proposition is about overall economic value, high quality service and staff, strong cultural compatibility, and a favourable time zone. The findings reveal that South Africa complements the global portfolio for Western-based client firms that already have BPO centres in Inclia, the Philippines, and Eastern Europe. Moreover, whether client firms build or buy services from South Africa, the research identifies clistinctive risks that need to be mitigated by investing in and effectively governing the business processes performed offshore. Finally, from the case study research, this article identifies management lessons for leveraging South Africa's identifiable BPO service advantage.

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The impact of process standardization on business process outsourcing success

Cited by 125 publications

References 65 publications

A multi-level investigation of information technology outsourcing

A multi-level investigation of information technology outsourcing

Measures of process harmonization

South Africa's business process outsourcing services sector: Lessons for Western-based client firms

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