Business Process Outsourcing : A Case Study of Satyam Computers
2010, International Journal of Information Management
The prominence of business process outsourcing (BPO) continues to intensify in today’s hyper-competitive marketplace. Organizations are identifying partners, and partnership mechanisms, to collaborate with external entities. Engaging in BPO can help an organization focus on its core competencies, while gaining specialized knowledge, skills, and processes in ancillary and auxiliary spaces. The literature is laden with evidence that engaging in a BPO will help an organization secure financial, operational, and even strategic advantages. While there is no doubt that organizations can attain these benefits, not all BPO arrangements work out as planned. Managing risks in BPO arrangements is paramount. In this paper, we describe the scandals that took place at Satyam Computer Services, one of India’s largest outsourcing vendors. In describing the case study, we draw attention to the fact that organizations need to
(1) keep abreast of strategic transformations at their outsourcing vendors,
(2) be able to plan for and execute contingency plans, and
(3) balance the risks and rewards of BPOs in terms of knowledge and capabilities.
Atesci, K., A. Bhagwatwar, T. Deo, K. Desouza,P. Baloh, (2010). Business Process Outsourcing : A Case Study of Satyam Computers. International Journal of Information Management, 30(3), 277-282