Taking Information Systems Business Process Outsourcing Offshore: The Conflict of Competition and Risk

Abstract

As Business Process Outsourcing (BPO) moves offshore and now includes Information Systems (IS) Processes, there is a need to consider a combination of the two. This article explores the factors that a multinational organisation considered when it “offshored” its IS business processes to lower-cost destinations. It focuses on determining the driving factors and challenges faced during the offshore sourcing project. A single, in-depth interpretive case study approach was used to explore this research topic. The results of this study show that the organisation under investigation was primarily driven to offshore its IS business processes in order to become more competitive in the marketplace. This was assisted by the organisation reducing its operational costs, and establishing a global presence in many lower-cost locations offshore. A model was developed, which illustrates the interrelationships that exist between these concepts.