BibTeX
@MISC{Gewald05theinfluential,
author = {Heiko Gewald and Dr. Jens Dibbern},
title = {The Influential Role of Perceived Risks versus},
year = {2005}
}
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Abstract
Process Outsourcing: Empirical Evidence from the German Banking Industry Business process outsourcing (BPO) has been suggested as one of the biggest areas of growth in the outsourcing market. Nevertheless, many organizations are still reluctant to outsource business processes that are part of their core business. In order to help overcome this divergence between expectations and reality, we systematically analyze the factors that form an organization’s attitude towards BPO as well as their intention to adopt BPO. We develop a BPO adoption model which is based on the argument that BPO poses both risks and benefits and that decision makers need to balance both before adopting BPO. The model is tested based on data that was collected in the German Banking Industry. Altogether 218 data points on the perceptions of business managers in the four areas of transaction processing (credits, securities, domestic payments, and foreign exchange/money market) were available for model testing via Partial Least Squares. The results show that the intention to outsource these IT-intensive business processes is strongly influenced by the manager’s attitude towards BPO. Other non-rational factors play a
Keyphrases
influential role perceived risk versus data point bpo adoption model empirical evidence core business it-intensive business process manager attitude towards bpo business manager many organization business process non-rational factor decision maker german banking industry foreign exchange money market organization attitude towards bpo transaction processing domestic payment process outsourcing partial least square
