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Antecedents of Success in Business Process Outsourcing: An Empirical Study of the Indian BPO Sector

Author(s): Aparna Daityari | Prof A. K. Saini | Romit Gupta

Journal: BVICAM's International Journal of Information Technology
ISSN 0973-5658

Volume: 1;
Issue: 1;
Date: 2008;
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Keywords: Business process outsourcing | control | management | partnership quality | outsourcing success

Global sourcing of technology related services is estimated tohave grown to reach USD 70-76 billion in 2007 of which ITBPOservices, growing at an above-sector-average rate ofnearly 8 per cent, remain the largest category, accounting foran increasing share of the worldwide technology sectorrevenue aggregate (Nasscom, 2008). This rising ubiquity of ITenabled outsourcing especially business process outsourcing(or BPO) has led to heightened interest in both the practitionerand academic communities on the reasons and practicesleading to successful outcomes. Both communities haveincreasingly referred to business process outsourcing as a formof strategic partnership indicating the predominance ofrelational governance mechanisms. Reality however is far fromthat. We establish the importance on control over partnershipquality exemplified in the form of a structured contract and itsassociated monitoring mechanisms through an empirical studyof 124 business process outsourcing relationships in some ofIndia’s most established BPO vendors.
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