Offshore BPO at large captive operations in India

Abstract

Purpose

The purpose of this paper is to contribute towards development of a management framework for offshore business process outsourcing (BPO).

Design/methodology/approach

This paper utilises longitudinal case studies to identify success factors in managing offshore BPO via the captive model (i.e. wholly‐owned subsidiary).

Findings

Success in offshore BPO is based on a combination of cost savings, technical service quality and strategic issues, is specific to business context and will change over time. Choice of engagement model (e.g. captive operation or arms‐length contracting) is an important success factor. Advantages of captive centers arise from higher levels of relationship quality, trust and collaboration effectiveness.

Research limitations/implications

This paper focuses on two global companies in two industry sectors (airlines and telecommunications), and both have adopted one particular BPO model (i.e. captive operation).

Originality/value

The paper contributes to scarce literature on offshore captive BPO operations, the most common but also least researched engagement model. The findings have practical implications for managers designing offshore BPO strategy.

Citation

Penter, K., Pervan, G. and Wreford, J. (2009), "Offshore BPO at large captive operations in India", Information Technology & People, Vol. 22 No. 3, pp. 201-222. https://doi.org/10.1108/09593840910981419