Pre- and Post-Adopters' Perceptions of the Benefits of Business Process Outsourcing
In: Working Paper
Technology adoption theory explains individual attitudes towards IT-based innovations within an organization. Here, we extend that model to explain attitudes in the German banking industry towards business process outsourcing (BPO). The theoretical development includes a shift from an intra-organization, hierarchy-based influence model to an inter-organization, market-based model. A survey of 218 managers in 126 banks shows that attitudes towards BPO are a function of managers' experience of BPO. The implications for theory and practice are examined.
Reference No.: 2006-121
Differences in Benefit Perception According to Alternative Statuses of Business Process Outsourcing Adoption
In: Twelfth Americas Conference on Information Systems; Acapulco, Mexico
Technology adoption theories propose that experience plays a major role in adopting or rejecting a new technology. This study analyses how the benefits of Business Process Outsourcing (BPO) as a major technological innovation are perceived differently, according to the BPO adoption status of the corporation. A survey with Germany's 200 largest banks has been conducted (response rate: 36.8%) to gather information on senior management's benefit perceptions. The responses were segregated onto three groups, according to adoption status thus level of experience: Pre-adopters, adopters and non-adopters. All groups show distinctively different benefit perceptions. Cost savings for example are a benefit only seen by managers who not yet outsourced a business process. Experienced managers on the contrary see the major cost benefit in higher programmability of expenses. By applying technology adoption theories, this paper offers empirically grounded insights into senior management's benefit perceptions as an important antecedent of the actual outsourcing decision. This provides valuable contributions to theory and practice.
Reference No.: 2006-101