An analysis of the application of process improvement techniques in business process outsourcing

Abstract

Purpose – The purpose of this paper is to enhance the understanding of the application of process improvement techniques (PITs) in the business process outsourcing (BPO) process. The paper focuses on how PITs impact the BPO process, and identifies a number of key enablers of applying PITs in the BPO process. Design/methodology/approach – The paper employs a case study approach. In-depth case study analysis of a number of organisations that have employed a number of PITs in BPO is carried out. Findings – The findings support current literature that highlights the importance of formal contracting, relational contracting, and vendor capabilities for applying PITs in BPO. However, the findings also highlight the importance of additional factors, not widely considered in the current literature. The client must possess internal capabilities in PITs and change management to ensure process improvement occurs. Moreover, the findings here have shown that the client must invest in and develop the resources that enhance its capability to employ PITs in BPO. Originality/value – The findings highlight the importance and relevance of process improvement to BPO, and identify a number of important issues for further research in order to bridge the gap between these two complementary areas.