A business process outsourcing framework based on business process management and knowledge management

Abstract

PurposeNowadays, outsourcing has proved to be an enterprise management strategy in the face of globalization and growing competition. The decision to outsource a business process for any organization has far‐reaching consequences and risks. The purpose of this paper is to analyse the impact of business process management (BPM) and knowledge management (KM) on reduction of outsourcing risks and pitfalls.Design/methodology/approachOutsourcing models and frameworks are reviewed to find the main risks in outsourcing. One of the most important groups of risks is emergent KM issues arising from widespread outsourcing. A strategic KM approach can reduce this risk. Communication and coordination difficulties between outsourcing partners is another group of risks that could be decreased by using the BPM approach in organizations. Then the contribution of a business process outsourcing (BPO) framework based on BPM and KM lifecycles is tested.FindingsThe paper finds that BPM and KM could reduce risks of outsourcing and enable a BPO lifecycle.Practical implicationsA contemporary case of IEI Company's outsourcing practices with one of its subsidiaries, Irancell, is discussed as an illustrative example.Originality/valueThe paper demystifies BPM and KM could enable BPO via coordinating BPM, KM, and BPO lifecycles.