Robust Practices from Two Decades of ITO and BPO Research

Abstract

This chapter reviews all the empirical academic research on information technology outsourcing (ITO) and business process outsourcing (BPO) published between 1992 and 2011 to extract robust practices. Robust practices are practices that have been academically tested and proven to be effective. Academics are uniquely positioned to study ITO and BPO. As scholars, academics are likely to be more objective than other sources of ITO and BPO research sponsored by industry consortiums or advisory firms. In the ITO and BPO domain, the 20 years (1992–2011) of academic research have generated a good understanding of practices. Overall, we have learned why firms outsource (mostly to reduce costs, access resources, and focus internal resources on more strategic work1), what firms outsource (mostly a portion of their overall back-office portfolios), how firms outsource (mostly by formal processes), and outsourcing outcomes as measured by realization of expectations, satisfaction, and performance (Dibbern et al. 2004). Overall, we know that client readiness, good strategy, good processes, sound contracts, strong retained capabilities, and good relationship management are key success factors (Cullen et al. 2005a; Feeny and Willcocks 1998; Teng et al. 1995; Willcocks and Lacity 2006). Academics have also studied many different sourcing models. For example, there is much academic research on offshore outsourcing. Offshore outsourcing research addresses macroeconomic issues, provider capabilities in developing countries, and specific client and provider practices to ensure success.