![]() Outsourcing is a widely accepted option in strategic management, which, like every business venture, bears opportunities and risks. The results point out the path dependencies of the BPO decision. Those banks that decided against BPO mostly focused on benefits while the perceived risks were mostly formed by strategic and performance risks rather than financial ones. ![]() Banks in the neutral position had the most balanced view of risks and benefits, mainly financial and performance ones, and also focusing on the core business and increased business process performance. Banks that opted for BPO were mostly driven by a desire to focus on their core business while considering financial risks. However, the experience that banks have with the BPO process,, moderated the impact of factors affecting the perceived risks and benefits of BPO. Our results showed that, in general, perceived BPO benefits have a substantially stronger impact on intention to increase the level of BPO than perceived risks. The model was tested in the German banking industry in four areas of transaction processing. We developed a model of the adoption of business process outsourcing (BPO) based on risk–benefit analysis.
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