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Article Information:
Title:
Business process outsourcing: an approach to gain access to world-class capabilities
Author(s):
Bhimrao Ghodeswar, Janardan Vaidyanathan
Journal:
Business Process Management Journal
Year:
2008
Volume:
Issue:
Page:
23 - 38
ISSN:
1463-7154
DOI:
10.1108/14637150810849382
Publisher:
Emerald Group Publishing Limited
Document Access:
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.
Keywords:
Outsourcing, Process management, World class manufacturing
Article Type:
Literature review