Business Process Outsourcing: A Manager’s Guide to Understanding the Market Phenomenon

  • Ashok C. Devata
  • Rachna Kumar
  • Theophanis Stratopoulos

Abstract

Faster, cheaper, better has become the mantra for business success in today’s economy and business process outsourcing (BPO) has become one of the means by which this goal may be achieved. BPO is defined as the long-term contracting out of information technology enabled business processes to an outside provider to help achieve increased shareholder value (Devata and Stratopoulos, 2004). With market analysts and researchers reporting significant benefits in terms of cost reduction, quality improvement as well as gains in flexibility and ability to focus more on the company’s core competencies, companies of all sizes are contemplating the pros and cons of the global outsourcing of business processes. The global BPO market grew by 13 per cent between 1999 and 2000 to $119 billion and is estimated to reach $234 billion by 2005 (Whinston, 2004). The Americas lead in terms of BPO spending, with the US accounting for over 59 per cent of total worldwide expenditure. Europe is the second largest market for outsourcing services, accounting for 22 per cent of the market.

Keywords

Europe Petroleum Transportation Marketing Expense 

Preview

Unable to display preview. Download preview PDF.

Unable to display preview. Download preview PDF.

References

  1. BusinessWeek, ‘Going Abroad’, BusinessWeek, February 3, 2004.Google Scholar
  2. Devata, A. and T. Stratopoulos, ‘The Life Cycle of Business Process Outsourcing’, Global Information Technology Management, San Diego 2004.Google Scholar
  3. Kennedy, R., Exporting IT — Enabled Services from Developing Countries, Harvard Business School, 2002.Google Scholar
  4. Knowledge@Wharton, ‘It’s Time to Talk Sense about Outsourcing’, The Wharton School of the University of Pennsylvania, March 10, 2004.Google Scholar
  5. Lacity, M. and L. Willcocks, Global Information Technology Outsourcing: In Search of Business Advantage, John Wiley & Sons, January 15, 2001.Google Scholar
  6. McCarthy, J.C., ‘Offshore: The good, the bad, the ugly’, Forrester Research, March 19, 2003.Google Scholar
  7. McKee, D.L., Garner, D.E. and Abu Amara, Y., Offshore Financial Centers, Accounting Services and the Global Economy, Quorum Books, July 30, 2000.Google Scholar
  8. McLean, H., ‘What outsourcing can do for you’, Times Online, March 31, 2003.Google Scholar
  9. Morstead and Blount, Offshore Ready: Strategies to Plan & Profit from Offshore IT-enabled Services, American Productivity & Quality Center, 2nd edition, 2003.Google Scholar
  10. Overby, S., ‘A Buyer’s Guide To Offshore Outsourcing’, CIO, November 15, 2002.Google Scholar
  11. Robinson, M. and Kalakota, R., Offshore Outsourcing: Business Models, ROI and Best Practices (Mivar Press, 2004).Google Scholar
  12. Satyam, ‘Satyam JV awarded $200 million contract from TRW’, http://www.satyam.com/mediaroom/pr1dec00.html, 2000.Google Scholar
  13. Scholl, R., ‘Offshoring BPO: A Framework for Getting Started’, Gartner Research, June 26, 2003.Google Scholar
  14. Thondavadi, N. and Albert G., Offshore Outsourcing: Path to New Efficiencies in IT and Business Processes, Nandu Thondavadi Authorhouse, March 2004.Google Scholar
  15. Vijayan, ‘India Inc., Still Going Strong’, Computer World, September 15, 2003.Google Scholar
  16. Wall Street Journal, ‘Google plans to open an engineering research and development center in India,’ Wall Street Journal, December 11, 2003.Google Scholar
  17. Whinston, A., ‘Offshoring Statistics — Dollar Size, Job Loss, and Market Potential’, http://www.ebstrategy.com/Outsourcing/trends/statistics.htm, 2004.Google Scholar

Copyright information

© Ashok C. Devata, Rachna Kumar and Theophanis Stratopoulos 2005

Authors and Affiliations

  • Ashok C. Devata
  • Rachna Kumar
  • Theophanis Stratopoulos

There are no affiliations available

Personalised recommendations