Modes of Governance in Business Process Outsourcing: Executive versus Market's Perspective
- 1 January 2008
- conference paper
- conference paper
- Published by Institute of Electrical and Electronics Engineers (IEEE) in Proceedings of the 41st Annual Hawaii International Conference on System Sciences (HICSS 2008)
Abstract
Outsourcing success - its all in governance reported Lauren Bielski in the ABA banking journal 2006 and consequently, governance represents the key concept when discussing outsourcing in practice. However, when analyzing the business process outsourcing practice of Swiss retail banks, governance aspects seem so far only to play a minor role in the evaluation of outsourcing decisions. This article deals with outsourcing in Swiss retail banking and raises the question whether the mode of governance does matter from the capital markets' point of view, and what modes of governance might be valued most. Our findings provide evidence that governance concepts applied in practice might divert when viewed from the executive's versus the market's perspective or in other words, outsourcing governance in the banking industry is much more a matter of coping with uncertainty than a process of truly aligning contracts in an optimal way.Keywords
This publication has 19 references indexed in Scilit:
- The risks of business process outsourcing: a two-fold assessment in the German banking industryInternational Journal of Electronic Finance, 2007
- Outsourcing Relationships: The Contract as IT Governance ToolPublished by Institute of Electrical and Electronics Engineers (IEEE) ,2007
- Cooperation and opportunistic behaviour in transformational outsourcingKybernetes, 2006
- Information systems outsourcingACM SIGMIS Database: the DATABASE for Advances in Information Systems, 2004
- An empirical assessment of transaction risks of IT outsourcing arrangements: an event studyPublished by Institute of Electrical and Electronics Engineers (IEEE) ,2004
- Information Systems Outsourcing Announcements: Investigating the Impact on the Market Value of Contract-Granting FirmsJournal of Information Systems, 2000
- Making more by doing less: An analysis of outsourcing and its effects on firm performanceJournal of Management, 2000
- Business process management: a boundaryless approach to modern competitivenessBusiness Process Management Journal, 1997
- Agency Theory: An Assessment and ReviewAcademy of Management Review, 1989
- Theory of the firm: Managerial behavior, agency costs and ownership structureJournal of Financial Economics, 1976