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June 29, 2026Critical Perspectives on International Business

Is outsourcing always beneficial: exploring the effects of process type and location on client value

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Authors

RTRavichandran T.SSSukruth Suresh

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Overview

Randomized trial examines how process type and location impact firm financial performance, suggesting complex outcomes.

Key Points

  • This study investigates how process type and outsourcing location influence the financial performance of firms engaged in business process outsourcing.
  • Analyzed a large sample of BPO initiatives announced between 2000 and 2014
  • Used event study methodology to assess financial impact
  • Employed multivariate regressions to test hypotheses
  • Outsourcing knowledge-intensive business processes generally improves firm performance.
  • Offshore outsourcing of knowledge-intensive processes has a negative impact on firm performance.
  • The interaction of process type and outsourcing location presents complexities affecting financial outcomes.

Cite This Study

T. et al. (2026) studied this question.

synapsesocial.com/papers/6a420b08f91bb43ea91923e6https://doi.org/10.1108/cpoib-06-2025-0135
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Also Consider

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