Title: Modelling of operational risks in knowledge process outsourcing environment

Authors: J. Naveen; Himanshu Payal; Prashant Chauhan

Addresses: Department of Mechanical Engineering, Sharda University, Greater Noida, India ' Department of Mechanical Engineering, Sharda University, Greater Noida, India ' Department of Mechanical Engineering, JSS Academy of Technical Education, Noida, India

Abstract: Knowledge process outsourcing (KPO) involves myriad risks that are highly complex and interconnected in nature. One such risk is operational risk, which is closely linked to the performance of service providers. This risk can pose a significant challenge to coordination among the different stakeholders involved in the process. This paper endeavours to bridge the theoretical-practical gap by identifying various operational risk factors. To analyse their impact on KPO, an interpretive structural modelling (ISM) model is developed, complemented by cross-impact matrix analysis to assess dependency and driving power of operational risks. Further, quantitative dependency is derived by the rank sum weight method (RSW). The study highlights that factors like insufficient task competence, employee turnover, conflicting objectives, and inadequate project investment act as potent drivers influencing other risk elements, ultimately impacting KPO in the supply chain. The insights derived from this research empower managers to discern and categorise critical criteria, unravelling the direct and indirect effects of each on KPO.

Keywords: knowledge process outsourcing; KPO; operational risk; interpretive structural modelling; ISM; cross-impact matrix analysis; CIM; rank sum weight method; RSW.

DOI: 10.1504/IJSOM.2026.153872

International Journal of Services and Operations Management, 2026 Vol.54 No.1, pp.81 - 113

Received: 16 Nov 2023
Accepted: 28 Nov 2023
Published online: 29 May 2026 *

Full-text access for editors Full-text access for subscribers Purchase this article Comment on this article