Outsouring Non-Core Business Processes: An Exploratory Study

Abstract

This study examines corporate performance effects when banks outsource noncore business processes. Additionally, the article proposes that knowledge management process plays a significant role in determining the outcomes of outsourcing. Drawing from resource theory and knowledge management literature, the authors develop the concept of managerial outsourcing competence and then propose a conceptual model. Also presented is an exploratory study of members of the North Carolina Bankers Association to assist in identifying the business processes they are currently outsourcing and their principal reasons for outsourcing.