Effective Control Mechanisms in a BPO(Business Process Outsourcing) Arrangement

BPO(Business Process Outsourcing) is defined as outsourcing the management and operation of the IT intensive business process to another company that has specialty in managing the process. In the outsourcing arrangement, the design of the effective control mechanisms is essential to the success of the outsourcing. The purpose of this study is to investigate the effective control mechanisms between two organizations in a BPO arrangement. The specific research questions put forth are as follows: (1)What are the control issues in relation to BPO? (2)How the control mechanisms in the successful BPO arrangement are designed? and (3)What kind of effect or change do the designed control mechanisms have on the buyer's job process in terms of BPO? The results of this study found that the following mechanisms are effected in BPO setting: (1)Automation (2)Standardization & Modularity (3)Embedding (4)Balanced control (5)control segmentation (6)hierarchy (7)output/behavior control 8)back-end control 9)informal control.