The strategic choice of contract types in business process outsourcing

Ge, Ling; Wang, Xiaoyan

doi:10.1108/bpmj-11-2020-0493

Cited by 11 publications

(11 citation statements)

References 69 publications

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“…It is important though that the transaction costs, including, e.g. coordination and adaptation costs, of the customer-supplier relationship are accounted for when companies decide on the appropriate RPA sourcing model (Ge et al., 2021).…”

Section: Deployment Framework To Support Phasing Staging and Taskingmentioning

confidence: 99%

Robotic process automation deployments: a step-by-step method to investment appraisal

Ylä-Kujala

Kedziora

Metso

et al. 2023

BPMJ

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PurposeRobotic process automation (RPA) has recently emerged as a technology focusing on the automation of repetitive, frequent, voluminous and rule-based tasks. Despite a few practical examples that document successful RPA deployments in organizations, evidence of its economic benefits has been mostly anecdotal. The purpose of this paper is to present a step-by-step method to RPA investment appraisal and a business case demonstrating how the steps can be applied to practice.Design/methodology/approachThe methodology relies on design science research (DSR). The step-by-step method is a design artefact that builds on the mapping of processes and modelling of the associated costs. Due to the longitudinal nature of capital investments, modelling uses discounted cashflow and present value methods. Empirical grounding characteristic to DSR is achieved by field testing the artefact.FindingsThe step-by-step method is comprised of a preparatory step, three modelling steps and a concluding step. The modelling consists of compounding the interest rate, discounting the investment costs and establishing measures for comparison. These steps were applied to seven business processes to be automated by the case company, Estate Blend. The decision to deploy RPA was found to be trivial, not only based on the initial case data, but also based on multiple sensitivity analyses that showed how resistant RPA investments are to changing circumstances.Practical implicationsBy following the provided step-by-step method, executives and managers can quantify the costs and benefits of RPA. The developed method enables any organization to directly compare investment alternatives against each other and against the probable status quo where many tasks in organizations are still carried out manually with little to no automation.Originality/valueThe paper addresses a growing new domain in the field of business process management by capitalizing on DSR and modelling-based approaches to RPA investment appraisal.

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Section: Deployment Framework To Support Phasing Staging and Taskingmentioning

confidence: 99%

Robotic process automation deployments: a step-by-step method to investment appraisal

Ylä-Kujala

Kedziora

Metso

et al. 2023

BPMJ

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“…The client organization needs to develop competency in order to understand the high-level solutions provided by the service provider (Gunasekaran et al, 2015). Unexpected changes often require trade partners to engage in costly renegotiations, resulting in adaptation costs (Ge et al, 2021). High-end work or changes in technical specifications can lead to significant adaptation expenses for the client organization.…”

Section: Adaptation Costmentioning

confidence: 99%

ISM approach to model financial risks in Indian KPO organization

Payal,

Chauhan

2023

IJERR

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Globalization has entered a new phase due to significant advancements in technology. This progress has allowed organizations to reduce costs while enhancing their market responsiveness, thus gaining a competitive edge. Nowadays, organizations prioritize knowledge process outsourcing (KPO) as a crucial element in their strategies, particularly in the service sector. However, research indicates that several challenges are negatively impacting the performance of the supply chain network when it comes to KPO. One major challenge is the financial risk associated with this environment. Various factors, such as switching costs, adaptation costs, and layoff costs, influence this financial risk. The aim of this research is to comprehend and identify the interconnectedness of these financial risk factors, which can affect the operational performance of KPO. The authors have meticulously reviewed relevant literature to identify these financial risk factors. Based on this subject matter, an integrated model has been constructed using Interpretive Structural Modeling (ISM) to address the finance-related challenges impacting KPO. Additionally, the Cross-Impact Matrix analysis evaluates the dependency and driving power of financial challenges. This analysis assists decision-makers in classifying and identifying important factors, as well as understanding the direct and indirect effects of each factor on operations related to KPO. The results indicate that switching costs, disputes & litigation, and measurement problems have strong driving power and weak dependency, making them independent factors. By mitigating these independent factors, the overall performance of the model can be improved.

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“…In this work, we performed a thorough literature study, where we noticed that the latency of a task Lty(a i ) is calculated using its size size(a i ) and the bandwidth (b) value (see Equation ( 14)). However, to estimate the latency value for a SESE Lty(SESE), we propose Equation (17). It is based, on one hand, on the latency value for the SESE tasks that are inserted on a sequence, AND, and OR patterns (see Equation ( 15)), and on the other hand, on the latency value of the tasks that are inserted on a XOR pattern (see Equation ( 16)).…”

Section: Securitymentioning

confidence: 99%

Decision-Making Approach for an IoRT-Aware Business Process Outsourcing

Fattouch

Lahmar

Rekik

et al. 2022

Digital

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In the context of Industry 4.0, IoRT-aware BPs represent an attractive paradigm that aims to automate the classic business process (BP) using the internet of robotics things (IoRT). Nonetheless, the execution of these processes within the enterprises may be costly due to the consumed resources, recruitment cost, etc. To bridge these gaps, the business process outsourcing (BPO) strategy can be applied to outsource partially or totally a process to external service suppliers. Despite the various advantages of BPO, it is not a trivial task for enterprises to determine which part of the process should be outsourced and which environment would be selected to deploy it. This paper deals with the decision-making outsourcing of an IoRT-aware BP to the fog and/or cloud environments. The fog environment includes devices at the edge of the network which will ensure the latency requirements of some latency-sensitive applications. However, relying on cloud, the availability and computational requirements of applications can be met. Toward these objectives, we realized an in-depth analysis of the enterprise requirements, where we identified a set of relevant criteria that may impact the outsourcing decision. Then, we applied the method based on the removal effects of criteria (MEREC) to automatically generate the weights of the identified criteria. Using these weights, we performed the selection of the suitable execution environment by using the ELECTRE IS method. As an approach evaluation, we sought help from an expert to estimate the precision, recall, and F-score of our approach. The obtained results show that our approach is the most similar to the expert result, and it has acceptable values.

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The strategic choice of contract types in business process outsourcing

Cited by 11 publications

References 69 publications

Robotic process automation deployments: a step-by-step method to investment appraisal

Robotic process automation deployments: a step-by-step method to investment appraisal

ISM approach to model financial risks in Indian KPO organization

Decision-Making Approach for an IoRT-Aware Business Process Outsourcing

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