Facilitating Business Process Outsourcing by Modularizing IT and Business Processes

To harness the full potential of this transformation, they are increasingly breaking down and dispersing their value chains. Business process outsourcing (BPO) allows organizations to restructure their operational processes and selectively source specific parts of those.

This study attempts to determine whether and how the modularity of the process organization (i.e., the business processes and IT parts of the enterprise architecture) influences the intention to outsource (parts of) business processes. Using data from the financial services sector and PLSc-SEM, we show that modularity influences the perception of benefits, risks, and the business process outsourcing intention.</p>