scholarly journals South Africa's business process outsourcing services sector: Lessons for Western-based client firms

2014 ◽  
Vol 45 (4) ◽  
pp. 45-58 ◽  
Author(s):  
M. C. Lacity ◽  
L. P. Willcocks ◽  
A. Craig

Since 2008, South Africa has become one of the world's upcoming offshore destinations for business process outsourcing (BPO), a market estimated to be worth $US 182 billion globally by 2013. Western-based client firms evaluating South Africa as a BPO destination must consider the country's relative value against alternative locations. Client firms also have a number of engagement models from which to choose, inclucling outsourcing, erecting a captive centre, or acquiring an existing BPO business. The research finds that, for the UK, US, and Australian client companies in this study, South Africa's value proposition is not just based on costs as other locations are often cheaper. South Africa's value proposition is about overall economic value, high quality service and staff, strong cultural compatibility, and a favourable time zone. The findings reveal that South Africa complements the global portfolio for Western-based client firms that already have BPO centres in Inclia, the Philippines, and Eastern Europe. Moreover, whether client firms build or buy services from South Africa, the research identifies clistinctive risks that need to be mitigated by investing in and effectively governing the business processes performed offshore. Finally, from the case study research, this article identifies management lessons for leveraging South Africa's identifiable BPO service advantage.

Organizacija ◽  
2019 ◽  
Vol 52 (3) ◽  
pp. 204-217 ◽  
Author(s):  
Dalibor Šimek ◽  
Roman Šperka

Abstract Background and Purpose: Motivation of this research is to explore the current trend in automating the business processes through software robots (Robotic Process Automation – RPA) and its managing within enterprise environment where most of the processes are executed by human workforce. As the RPA technology expands the demand for its coordinating grows as well. The possible solution to this challenge is shown in case study research in form of implementing orchestration platform to a concrete business process of onboarding in HR department of a multinational company. The aim of this paper is to explore the phases and activities of the pilot project implementation of Robotic Service Orchestration (RSO) in combination with RPA technology and to assess the potential benefits. Design/Methodology/Approach: Case study research approach was selected to explore the research phenomena, which is the implementation of RSO platform in combination with RPA technology and assessing incoming benefits. The case is formed with 2 companies – (1) multinational company with ongoing effort of automating onboarding process, (2) technology and consulting company delivering the automation solution. Data were collected through semi-structured interviews with respondents from two involved companies and by analysing internal documents. Results: The analysis of case provided in this paper revealed some key insights: (1) strategical position of RSO and tactical position of RPA towards the existing legacy systems, (2) need for increased focus on initial process modelling phase, (3) Application Programming Interface (API) integration is more viable solution for RPA, (4) the biggest benefit of RPA - its agility, (5) future potential of the RSO replacing the BPMS. Conclusions: First of all, there is a need of higher number of software robots adopted in a company before orchestration could pay off. On the other side, current Business Process Management Systems (BPMS) solutions don’t offer functionalities for managing human and software robots workforce altogether. RPA is expected to expand and without proper orchestration the effectivity will not grow constantly.


2010 ◽  
pp. 188-210
Author(s):  
Subrata Chakrabarty

This chapter provides a comprehensive overview of business process outsourcing (BPO) strategies and analyzes related issues. The discussions in this chapter can serve as an aid to decision makers who face the great dilemma of whether to insource or outsource a process, and additionally how to handle outsourcing to offshore locations. While business processes themselves are activities that need to be performed efficiently, outsourcing them is essentially a strategic decision that can ultimately impact the competitiveness of the client firm. This chapter explores the risks and opportunities associated with the numerous strategies related to outsourcing and offshoring alternatives, business process migration, contracting and alliance building, the role of the vendor, the nature of the relationship, multiclient or multivendor relationships, infusing maturity and ushering transformations in business processes, locating required expertise and quantity of workers, and also utilizing on-demand software services from application service providers.


2011 ◽  
pp. 204-229 ◽  
Author(s):  
Subrata Chakrabarty

This chapter provides a comprehensive overview of business process outsourcing (BPO) strategies and analyzes related issues. The discussions in this chapter can serve as an aid to decision makers who face the great dilemma of whether to insource or outsource a process, and additionally how to handle outsourcing to offshore locations. While business processes themselves are activities that need to be performed efficiently, outsourcing them is essentially a strategic decision that can ultimately impact the competitiveness of the client firm. This chapter explores the risks and opportunities associated with the numerous strategies related to outsourcing and offshoring alternatives, business process migration, contracting and alliance building, the role of the vendor, the nature of the relationship, multiclient or multivendor relationships, infusing maturity and ushering transformations in business processes, locating required expertise and quantity of workers, and also utilizing on-demand software services from application service providers.


2009 ◽  
pp. 1478-1497
Author(s):  
Duncan R. Shaw ◽  
Christopher P. Holland ◽  
Peter Kawalek ◽  
Bob Snowdon ◽  
Brian Warboys

This paper investigates the collective use of a simple modeling technology by highly complex, heterogeneous and numerous groups of stakeholders who heavily depend upon it to mediate their interactions. We use economic theory, design theory, complex systems theory and business process modeling concepts to analyze deregulation and business to business interaction in the UK electricity industry, and the strategic business and IT response of Electric Co, a large electricity supply company. The relevance of this study comes from its investigation of a novel example of the shaping of a whole sector’s ebusiness through regulatory law and thus we are concerned with enterprise and inter-enterprise systems not purely with ERP systems. We focus on model-based business interaction and its effect upon the business and consumer behaviors of a whole country’s electricity sector. This sector is a socio-technical system; so business processes and consumer behaviors are not only shaped by the regulator’s legally enforced business to business process interaction model, but the opinions of businesses and the public also influence how the regulator updates its model. Thus business behaviors, consumer behaviors and the model interact to shape each other. By moving from intra to inter-organizational business processes we seek to demonstrate and explain the value of models in e-business where the complexity of interacting business systems involves many thousands of parameters. We show how developments in technical standards and business process management are related to inter-organizational interaction and coordination.


Author(s):  
Anne C. Rouse

A marked development in the last decade has been the growth of “virtual organizations” (or “extended enterprises”), where a network of service supplier and vendor firms cooperates to create customer value. One form of cooperation is described as business process outsourcing (BPO). A business process involves several interrelated activities performed with the goal of generating customer value. Because of the growth in e-collaboration tools, it is now possible for firms to outsource even core business processes to external vendors. Examples of processes typically outsourced include logistics, customer support, human resources, and back-office accounting functions. BPO and the value networks created by vendors and purchasers hold the promise of substantial business benefits associated with specialization and scale. These include reduced costs, greater business flexibility, and higher service quality. According to the Gartner Group, the world market for BPO services is likely to increase from $100 billion in 2002 to $173 billion by 2007(Gartner, 2004).


2012 ◽  
Vol 11 (1) ◽  
pp. 54-68 ◽  
Author(s):  
Christian Rogerson

The National Industrial Policy Framework and the Accelerated and Shared Growth Initiative for South Africa emphasize the importance of promoting select ‘priority sectors’. This paper provides a review of existing research concerning SMME development in the three priority sectors of tourism, business process outsourcing and offshoring (BPO & O) and, creative industries. The paper argues for the importance of undertaking sector-differentiated research on SMME development in South Africa in order to complement other research which is focussed on sector development as a whole.


10.28945/4320 ◽  
2019 ◽  
Vol 14 ◽  
pp. 119-143 ◽  
Author(s):  
Ewa Wanda Ziemba ◽  
Monika Eisenbardt ◽  
Roisin Mullins ◽  
Sandra Dettmer

Aim/Purpose: The main purpose of this paper is to identify prosumers’ engagement in business process innovation through knowledge sharing. Background: In the increasingly competitive knowledge-based economy, companies must seek innovative methods of doing business, quickly react to consumer demand, and provide superior value to consumers. Simultaneously, contemporary consumers, named “prosumers”, want to be active co-creators of value and satisfy their consumption needs through collaboration with companies for co-creation, co-design, co-production, co-promotion, co-pricing, co-distribution, co-consumption, and co-maintenance. Consequently, consumer involvement in development and improvement of products and business process must be widely analyzed in various contexts. Methodology: The research is a questionnaire survey study of 388 prosumers in Poland and 76 in the UK. Contribution The contribution of this research is twofold. First, it identifies how prosumers can be engaged in business processes through knowledge sharing. Second, it investigates the differences between Poland- and UK-based prosumers in engagement in business process. Findings: The study found that prosumers are engaged in knowledge sharing at each stage of the business process innovation framework. However, there are differences in the types of processes that draw on prosumers’ engagement. Prosumers in Poland are found to engage mostly in the business process of developing and managing products, whereas prosumers in the UK engage mostly in the business process of managing customer services. Recommendations for Practitioners: This study provides practitioners with guidelines for engaging prosumers and their knowledge sharing to improve process innovation. Companies gain new insight from these findings about prosumers’ knowledge sharing for process innovation, which may help them make better decisions about which projects and activities they can engage with prosumers for future knowledge sharing and creating prospective innovations. Recommendations for Researchers: Researchers may use this methodology and do similar analysis with different samples in Poland, the UK, and other countries, for many additional comparisons between different groups and countries. Moreover, a different methodology may be used for identifying prosumers’ engagement and knowledge sharing for processes improvement. Future Research: This study examined prosumers’ engagement from the prosumers’ standpoint. Therefore prosumers’ engagement from the company perspective should be explored in future research.


2009 ◽  
pp. 992-999
Author(s):  
Anne C. Rouse

A marked development in the last decade has been the growth of “virtual organizations” (or “extended enterprises”), where a network of service supplier and vendor firms cooperates to create customer value. One form of cooperation is described as business process outsourcing (BPO). A business process involves several interrelated activities performed with the goal of generating customer value. Because of the growth in e-collaboration tools, it is now possible for firms to outsource even core business processes to external vendors. Examples of processes typically outsourced include logistics, customer support, human resources, and back-office accounting functions. BPO and the value networks created by vendors and purchasers hold the promise of substantial business benefits associated with specialization and scale. These include reduced costs, greater business flexibility, and higher service quality. According to the Gartner Group, the world market for BPO services is likely to increase from $100 billion in 2002 to $173 billion by 2007(Gartner, 2004).


2009 ◽  
pp. 290-312
Author(s):  
Subrata Chakrabarty

This chapter provides a comprehensive overview of business process outsourcing (BPO) strategies and analyzes related issues. The discussions in this chapter can serve as an aid to decision makers who face the great dilemma of whether to insource or outsource a process, and additionally how to handle outsourcing to offshore locations. While business processes themselves are activities that need to be performed efficiently, outsourcing them is essentially a strategic decision that can ultimately impact the competitiveness of the client firm. This chapter explores the risks and opportunities associated with the numerous strategies related to outsourcing and offshoring alternatives, business process migration, contracting and alliance building, the role of the vendor, the nature of the relationship, multiclient or multivendor relationships, infusing maturity and ushering transformations in business processes, locating required expertise and quantity of workers, and also utilizing on-demand software services from application service providers.


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