• Title/Summary/Keyword: Business Process Outsourcing(BPO)

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An Exploratory Study on The Factors Affecting BPO(Business Process Outsourcing) Performance of Domestic Firms: Focused on Knowledge Intensity and Degree of Informatization of Business Process (국내 기업의 비즈니스 프로세스 아웃소싱 영향요인에 관한 탐색적 연구 : 프로세스의 지식강도와 정보기술지원 정도를 중심으로)

  • 김정욱;박정훈;남기찬
    • Journal of the Korean Operations Research and Management Science Society
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    • v.28 no.3
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    • pp.149-168
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    • 2003
  • With the increase of global competition and the reduction of the lifecycle of business process, most leading companies begin to adopt BPO(Business Process Outsourcing), by outsourcing the whole or part of their business process to external service providers and focusing on their core capability, in order to enhance their core competency, In adopting BPO, it is an important decision-making issue that which part of process should be outsourced. So identifying core/non-core process among the business processes is a prerequisite for managing corporate capability and performance of outsourcing. In this study, by focusing on knowledge intensity and degree of informatization of the business process that are important factors in adopting BPO, we have analyzed the current status of BPO adoption of domestic firms and proposed several guidelines for adopting BPO.

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

  • Kim, Hyang-Bin;Kim, Gyeung-Min
    • 한국IT서비스학회:학술대회논문집
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    • 2003.11a
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    • pp.167-174
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    • 2003
  • 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.

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An Exploratory Empirical Study on the Partnership and Performance of IT-enabled Business Process Outsourcing : A Case of CTI(Computer Telephony Integration) based Customer Service Center Outsourcing (정보기술 기반 비즈니스 프로세스 아웃소싱 파트너십과 성과에 관한 탐색 : CTI(Computer Telephony Integration) 기반 고객서비스센터 아웃소싱 사례를 중심으로)

  • An Joon Mo;Oh Min Suk
    • Journal of Information Technology Applications and Management
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    • v.12 no.1
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    • pp.241-259
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    • 2005
  • This study explores a model of partnership to the success of outsourcing CTI(computer telephony integration) based customer service centers of a telecommunication service company. The motivation of the study is to extend the research on IT outsourcing to IT-enabled BPO of customer service centers as a specific IT outsourcing practice. Previous research on IT outsourcing partnership and success is reviewed for developing an a research model of IT-enabled BPO. This model is proposed based on the previous partnership success models in information systems research. The results of the study confirm major factors related to successful IT-enabled BPO in previous research. Especially, the specificity of a contract and strategic collaboration in partnership are found to be influential on the success of IT-enabled BPO.

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Exploring Control Mechanisms in BPO (Business Process Outsourcing) Arrangement by Korean Conglomerate: Resource Dependency Perspective (재벌기업의 BPO 통제 메커니즘에 관한 탐색적 연구: 자원 의존성 관점에서)

  • Kim, Gyeung-Min;Kim, Hyang-Bin
    • Information Systems Review
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    • v.9 no.3
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    • pp.67-82
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    • 2007
  • The myth about BPO is: since firms do not want to continue to control the business process, they outsourced it to the external provider. Therefore, there is no need for controlling the outsourced process. Based on resource dependency theory, this study explores control mechanism used in BPO context. The overall approach of this study is qualitative, inductive and exploratory. First, a generic framework on the control structure is derived from extant literature, which includes outcome/process control, IS and social control. This framework is applied to a Korean BPO case. This study has found that the hybrid control structure consisting of behavior, outcome and social control mechanisms are effective for BPO success. As outsourcing grows rapidly and IS functions become smaller, the business struggles to redefine its IS capability. This research proposes setting up proper control mechanism between user and BPO service provider as new IS capability that business should focus on; and provides guidelines for managers in development of new IS capability.

Determinants of Business Process Outsourcing in Human Resource Function

  • Kim, Gyeung-Min;Won, Hyun Jung
    • Journal of Information Technology Applications and Management
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    • v.15 no.3
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    • pp.111-125
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    • 2008
  • The management of organizational Human Resource is steadily shifting away from pure hierarchical to market mechanisms that involve external vendors. HR Business Process Outsourcing (BPO) has recently emerged as a significant administrative innovation in an organization's strategy. Our paper attempts to understand firm-specific factors influencing the scope of HR BPO needs. Study results show that IT maturity and firm size are influential factors on the scope of HR BPO needs. We hope that our attempt at empirically examining and predicting this emergent phenomenon will stimulate others to look at this important strategic challenge facing firms from a theoretical perspective. Such research initiatives will allow us not only to better understand this complex phenomenon, but also to drive useful management prescriptions grounded on theory-based research.

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An Empirical Study of Entrepreneurial Attitude on Business Process Outsourcing (중소벤처기업가의 BPO태도에 영향을 미치는 요인에 관한 연구)

  • Ryu, Jung Hwan;Yang, Jun Hwan
    • Asia-Pacific Journal of Business Venturing and Entrepreneurship
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    • v.11 no.4
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    • pp.127-138
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    • 2016
  • Outsourcing enables firms to use external resources in efficient and effective manner by adopting the best practice of industry. It also helps firms improve their business process which may result in seizing or creating new business opportunity. Collaborating with outstanding BPO(business process outsourcing) providers offer a great deal of advantage that could access to new knowledge, technology, intellectual and material resources that firms do not own. This study was designed to provide in-dept understanding of key elements that may affect the attitude towards BPO of entrepreneurs using 99 samples comprised SME & Venture business owners. Specifically, this study aims to test and analyse the relationship between attitude towards BPO and 4 independent variables including cost reduction, core competence, specialized resources and quality improvement. The analysis results show that core competence, specialized resources and quality improvements have all positive relationships with the attitude towards BPO. However, exceptionally cost reduction is not associated positively with the attitude towards BPO which was against our expectation. Theoretical discussion and practical implication on the analysis results are provided.

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Factors That Enable Reintermediation

  • Kwon, Sun-Ok;Lee, Hong-Kyu
    • 한국경영정보학회:학술대회논문집
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    • 2007.06a
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    • pp.378-381
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    • 2007
  • Traditional intermediaries refer to service providers such as travel agents, real estate brokers, job agencies and insurance agents which matching services for buyers and suppliers in a traditional market. The introduction of Electronic commerce resulted in the automation of many tasks provided by intermediaries and seemed to eliminate the role of many traditional intermediaries, which is called disintermediation. However, depending on their market power, traditional intermediaries either will be disintermediated or fill new roles by providing added value and assistance, which is called reintermediation. According to the research of Alina M. Chircu et al. there are three conditions for reintermediation for traditional intermediaries. Three conditions are weak appropriability of EC innovations, ownership of co-specialized assets for both market intermediation and EC innovations and economies of scale. Besides these three reintermediation conditions, we hypothesize that leveraging BPO can be a suitable strategy for traditional intermediaries to be transformed into reintermediaries. Business Process Outsourcing (BPO) is the leveraging of technology or specialist process vendors to provide and manage an organization's critical and/or non-critical enterprise processes and applications. This paper will investigate the relationship between above reintermediation conditions including BPO and reintermediation.

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지각된 위험, 지각된 혜택, 신뢰가 비즈니스 프로세스 아웃소싱 수용에 미치는 영향에 관한 실증 연구

  • Kim, Jae-Jeon;Lee, Yun-Hui;Park, Deuk
    • Proceedings of the Korea Society for Industrial Systems Conference
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    • 2008.10b
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    • pp.589-594
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    • 2008
  • 정보기술과 지식 사회의 발달로 인해 기업의 다양한 업무 프로세스를 대행해주는 비즈니스 프로세스 아웃소싱(Business Process Outsorucing: BPO)이 대표적 아웃소싱 형태로 자리잡아가고 있다. BPO의 수용에 대한 의사결정은 전략적 관점에서 매우 신중하게 이루어져야 함에도 불구하고, 국내 기업을 대상으로 한 BPO의 채택과 확산에 관한 실증적 연구는 거의 찾아보기 어려운 실정이다. 따라서 본 연구는 국내 기업의 BPO 수용 의사결정에 영향을 미치는 주요 요인들을 추출하고, 이러한 요인들이 수용의도에 어떠한 영향을 미치는지를 검증한다. 이를 위해 BPO 수용 관련 위험요인과 혜택요인을 추출하고, 이들 요인이 신뢰를 매개하여 수용의도에 미치는 영향 관계를 실증적으로 탐색해 향후 BPO연구를 위한 명제와 모델을 제시한다. 실무적으로는 BPO 수용요인에 관한 검토를 통하여 향후 BPO 추진 기업을 위한 성공적 추진 전략을 제시한다.

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Governance Structure for Knowledge Transfer in Global Business Process Outsourcing (글로벌 프로세스 소싱에서의 효과적인 지식이전을 위한 거버넌스 구조 연구)

  • Kim, Gyeung-Min
    • Information Systems Review
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    • v.9 no.2
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    • pp.1-14
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    • 2007
  • The structure chosen to govern knowledge transfer in Inter Organizational Relationship(IOR) is often argued to be critical to the success of IOR. However, little research is done on the effective governance structure for knowledge transfer in global Business Process Outsourcing(BPO). The objective of this study is to explore the effective governance structure for knowledge transfer in IT intensive global BPO. Ground theory building methodology is used for this study. First, a generic framework on governance structure for knowledge transfer is derived from extant literature. The framework consists of potentially important constructs to study the governance mechanism for knowledge transfer. For the governance mechanism, this study focused on hierarchy/market structure, formal/informal control mechanisms and information systems. For knowledge type, the study focuses on sensitive knowledge, codifiable knowledge and non codifiable knowledge. This framework is applied to case analyses of two firms to explore effective governance mechanism to transfer each type of knowledge. As results of this study, pertinent propositions for future academic inquiry are derived.