Volume 10, Number 2, 211-224, DOI: 10.1007/s10796-008-9063-x

The impact of process standardization on business process outsourcing success

Kim Wüllenweber, Daniel Beimborn, Tim Weitzel and Wolfgang König

From the issue entitled "Special Issue on Information Systems (IS) Sourcing, Guest Editors: Rudy Hirschheim, Jens Dibbern and Armin Heinzl"

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Abstract

What is the impact of business process standardization on business process outsourcing (BPO) success? This paper argues that there is a direct impact of process standardization on BPO success, due to production cost economies, and also an indirect effect via improved contractual and relational governance resulting from better monitoring opportunities and facilitated communication and coordination. This threefold impact of standardization on BPO success is empirically confirmed using data from 335 BPO ventures in 215 German banks.

Keywords  Business process outsourcing - Business process standardization - Outsourcing governance

An earlier version of this paper (“Business Process Outsourcing: The Challenge of Process Standardization”) was presented at the Intl. Conference on Outsourcing of Information Systems (ICOIS) in Heidelberg in 2007.

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