The impact of process standardization on business process outsourcing success

Authors:
Kim Wüllenweber;Daniel Beimborn;Tim Weitzel;Wolfgang König
Affiliations:
Institute of Information Systems, E-Finance Lab, Johann Wolfgang Goethe University, Frankfurt, Germany 60054;Chair of Information Systems and Services, University of Bamberg, Bamberg, Germany 96045;Chair of Information Systems and Services, University of Bamberg, Bamberg, Germany 96045;Institute of Information Systems, E-Finance Lab, Johann Wolfgang Goethe University, Frankfurt, Germany 60054
Venue:
Information Systems Frontiers
Year:
2008

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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.