Research Methodology
Research Proposal
Business Process Outsourcing
In
South Africa
Prepare For:
Dr. Christel Troskie-de Bruin
MBA program Lecturer in Research Methodology
University of Stellenbosch
Prepared by:
Roelof Louw
Student Number: 10992510
11 July 2005
Table of Contents
1 Introduction and Background 1
2 Definition of Research Problem 2
3 Preliminary Literature Review 2
4 Research Design and Method 4
5 Timeframe 5
6 Framework for Proposed Study 6
7 Provisional List of Sources 6
8 Date of Completion 7 1 Introduction and Background
In the nineties corporations realised that due to economic and business pressures, corporations need to focus on core business activities. In addition rapid technology advances rendered the provision of IT services free from the business location. The introduction of concepts such as "location-less" and "distances-less" provision of IT services gave rise to an increasing demand for outsourced IT services (Bierce, Spohr and Shab, 2004:5). These technology advances also provided the opportunity to exploit the benefits of offshore outsourcing.
Initially, IT Infrastructure Outsourcing and then later Application Outsourcing were implemented to reduce operational costs and focus on core business. Today Business Process Outsourcing (BPO) is the next discipline many multi-national corporations are embarking on. BPO include functions such as human resource services, financial services, accounting and reporting, billing, procurement, call center management, credit services and customer relationship management. This research will focus on call center management function of BPO.
Initially, one of the main drivers for foreign BPO was cost savings mainly due to currency market fluctuations as well as associated lower labour wages. The benefit from a foreign destination BPO agreement can account for cost savings of 20% to 65% (Rayn 2003:1) depending on the country from where BPO services are sourced.
South Africa is
Business Process Outsourcing
In
South Africa
Prepare For:
Dr. Christel Troskie-de Bruin
MBA program Lecturer in Research Methodology
University of Stellenbosch
Prepared by:
Roelof Louw
Student Number: 10992510
11 July 2005
Table of Contents
1 Introduction and Background 1
2 Definition of Research Problem 2
3 Preliminary Literature Review 2
4 Research Design and Method 4
5 Timeframe 5
6 Framework for Proposed Study 6
7 Provisional List of Sources 6
8 Date of Completion 7 1 Introduction and Background
In the nineties corporations realised that due to economic and business pressures, corporations need to focus on core business activities. In addition rapid technology advances rendered the provision of IT services free from the business location. The introduction of concepts such as "location-less" and "distances-less" provision of IT services gave rise to an increasing demand for outsourced IT services (Bierce, Spohr and Shab, 2004:5). These technology advances also provided the opportunity to exploit the benefits of offshore outsourcing.
Initially, IT Infrastructure Outsourcing and then later Application Outsourcing were implemented to reduce operational costs and focus on core business. Today Business Process Outsourcing (BPO) is the next discipline many multi-national corporations are embarking on. BPO include functions such as human resource services, financial services, accounting and reporting, billing, procurement, call center management, credit services and customer relationship management. This research will focus on call center management function of BPO.
Initially, one of the main drivers for foreign BPO was cost savings mainly due to currency market fluctuations as well as associated lower labour wages. The benefit from a foreign destination BPO agreement can account for cost savings of 20% to 65% (Rayn 2003:1) depending on the country from where BPO services are sourced.
South Africa is