Exploratory Study on Effective Control Structure in Global Business Process Sourcing

Abstract

In an IT-intensive global business process sourcing (global BPS) project, the structure chosen to control knowledge transfer is critical. The objective of this study is to explore the effective control structure for knowledge transfer in IT-intensive global BPS project. The research methods used in this study are a case study and survey. First, a generic framework on the control structure for knowledge transfer is derived from extant literature. This framework is applied to a case analysis of a service provider in Mauritius. As a result of the case analysis, a model for control structure facilitating knowledge transfer in global BPS is derived. The model includes a social control mechanism, communication mechanism, project control mechanism as independent variables, and governance mechanism as a moderator variable. The degree of knowledge transfer and success of global BPS are used as dependent variables. The propositions describing the relationships between the variables are formulated. A total of 19 survey items were generated for these variables. As results of the survey, the model is revised and a set of more refined propositions are generated in the conclusion. Both service providers and clients can benefit from this study by focusing on control mechanisms that affect the knowledge transfer and BPS success.