A Decision Making Framework for Information Technology Enabled Business Process Outsourcing

Information Technology enabled Business Process Outsourcing (BPO) is a growing phenomenon yet little research has been conducted to understand the factors that determine its appropriateness for organisations. A framework that considers the decision from the perspective of the transaction, the organisation and its context is outlined. The usefulness of that framework is then assessed using a case study of outsourced customer management services in Australia based upon 35 hours of interviews with three suppliers and three clients. The study suggests that the interaction between the factors shaping the BPO decision is more complex than envisaged and that for outsourcing to occur there needs to be a compelling motivation: in this instance increased competition as a result of deregulation.