Title: The perspectives and practices of business process outsourcing in Indian industries: a survey and analysis

Authors: K. Sunil Kumar; A. Subash Babu

Addresses: Department of Mechanical Engineering, College of Engineering, Trivandrum 695016, Kerala, India ' Department of Mechanical Engineering, Indian Institute of Technology Bombay, Powai, Mumbai 400076, Maharashtra, India

Abstract: Outsourcing has become a common terminology among the industries, which has provided a thrust in achieving the organisational goals. Organisations are narrowing the range of processes and functions they perform internally, and today's business environment relies substantially on third party business and service providers. This trend is very much on the increase in India. A survey of the Indian industries was carried out to get an insight into the level of maturity of the companies as far as outsourcing is concerned. The survey covered issues related to various facets of outsourcing including the functions outsourced, reasons for outsourcing, benefits obtained, problems faced and criteria for vendor selection. The response obtained from more than 100 participants drawn from various sectors, including manufacturing, information technology and service, was subjected to preliminary analysis and multivariate statistical test such as factor analysis. The results of these analyses provide significant insight into the perspectives and practices of business process outsourcing (BPO) in Indian industries, especially in terms of the relationships that seem to exist among different functions outsourced, criteria for preference among the vendors, levels of advantages offered by BPO and the degree of problems faced by outsourcing organisations. The results also provide a good base to develop an effective decision support system. The details of the survey, the analysis and the key learning points are presented in this paper.

Keywords: survey results; factor analysis; business processes; organisational goals; third party businesses; service providers; outsourced functions; benefits; problems; selection criteria; vendor selection; manufacturing industry; ICT; information technology; communications technology; multivariate statistical tests; BPO; business process outsourcing; decision support systems; preference criteria; India; Indian culture; business management.

DOI: 10.1504/IJICBM.2012.045644

International Journal of Indian Culture and Business Management, 2012 Vol.5 No.2, pp.184 - 207

Received: 08 May 2021
Accepted: 12 May 2021

Published online: 08 Feb 2012 *

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