Building winning relationships in business process outsourcing services

The purpose of this paper is to discuss business processes as building blocks of organizational capabilities and outsourcing of business processes as a viable management approach in building winning relationships.

The paper develops a conceptual model to successfully implement “global sourcing” of organizational capabilities for the service provider and validates this framework using questionnaire survey methodology.

The paper identifies business process management and relationship management value propositions as the key dimensions for business process outsourcing (BPO) success. However, these value propositions fall short of building winning relationships.

The research is based on questionnaire survey of Indian BPO service providers. A survey of BPO clients may further strengthen the proposed framework and make the findings more conclusive.

The proposed framework helps both the BPO client and the service‐provider organizations in understanding the critical role of relationship management in realizing the intended BPO service outcomes.

The paper establishes the importance of capability service provision by the service provider as value proposition.