Process and Structural Implications for IT-Enabled Outsourcing

Theory Development

In this section, we illustrate three distinct approaches to IT-enabled BPO and KPO (Graf & Mudambi, 2005; Sen & Shiel, 2006) which appear to conflict with current theoretical arguments for outsourcing. We differentiate these approaches by the timing of when the outsourcing vendor takes ownership or responsibility for the activity associated with the knowledge resource or capabilities, and when and where any transformation of the activity takes place. We label these processes by the order of the initial activities that lead the outsourcing process, (e.g., transformation, transition, or a transfer of an organizational activity). Borrowing from commonly accepted consulting terminology, we term these three outsourcing processes as transform-transition, transition-transform, and transfer, based on the order and combination of outsourcing activities.