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.