Information Technology enabled Business Process Outsourcing (BPO) is a growing phenomenon, yet little research has been conducted to understand the factors that determine its appropriateness for organisations and what capabilities they should seek in potential suppliers. A multi-perspective approach to the BPO decision, encompassing the transaction, the organisation and its context, is proposed and a set of supplier capabilities to deliver upon it is outlined. A case study of outsourced call centres in Australia, based upon interviews with three suppliers and three clients, suggests such a multi-perspective approach is useful but that the interaction between the factors shaping the BPO decision is more complex than envisaged. The case also suggests that a common set of capabilities is sought from suppliers – though it is narrower than first proposed.
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