Business process outsourcing: A case study of Satyam Computers

Kayhan Atesci, Akshay Bhagwatwar, Trupti Deo, Kevin C. Desouza, Peter Baloh

Research output: Contribution to journalArticle

14 Scopus citations

Abstract

The prominence of business process outsourcing (BPO) continues to intensify in today's hyper-competitive marketplace. Engaging in BPO can help an organization focus on its core competencies, while gaining specialized knowledge, skills, and processes in auxiliary spaces. The literature is laden with evidence that engaging in a BPO will help organizations secure financial, operational, and even strategic advantages. While there is little doubt that organizations can attain these benefits, few BPO arrangements work out as planned. Managing risks in BPO arrangements is paramount. In this case analysis, we describe a significant failure through chronological description of scandals that took place at one of India's largest outsourcing vendors, Satyam Computer Services. In describing the study, we draw attention to the fact that organizations need to (1) improve their sensing capabilities and 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 dependencies.

Original languageEnglish (US)
Pages (from-to)277-282
Number of pages6
JournalInternational Journal of Information Management
Volume30
Issue number3
DOIs
StatePublished - Jun 2010

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Keywords

  • Business process outsourcing
  • Clients
  • Information technology
  • Offshoring
  • Outsourcing
  • Satyam Computers
  • Vendors

ASJC Scopus subject areas

  • Information Systems
  • Computer Networks and Communications
  • Library and Information Sciences

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