| Summary: | Abstract
This study highlights the operational risks facing the 3P BPO service providers in India in their endeavour to meet service levels with clients. It also presents the risk management methodology used by these organizations to manage the operational risks they face.
Purpose
The purpose of this paper is to understand the fact that 3P BPO service providers face operational risks in their business and what those operational risks are, along with the risk management methodology they adopt in managing those risks.
Design/methodology/approach
The research studies the risks and risk management practices of three, 3P BPO
service provider companies in India by adopting a semi-structured, interview-based, inductive case study approach. The study draws from the literature proposed by Miles et al., (2014) and Saldana (2013) for analyses.
Findings
The study established that 3P BPO service providers do face a range of operational risks in their business endeavour, which are broadly classified as internal and external risks. The risk management methodology adopted by these organisations is also highlighted.
Research limitations/implications
The study was based on a convenience sample of three service provider
organizations that served as participants in this study. Further case-based studies with larger representative samples will help generalise the findings.
Practical implications
The research provides a theoretically underpinned list of operational risks, their
levels and their relationship with the causal risks. Understanding these in detail can help operations managers address operational risks more efficiently and effectively. Service consumers looking to outsource their business processes too can benefit from this study that can help them understand their BPO service providers’ business risks that in turn can affect their own business.
Originality/value
The study addresses the gap in current literature by providing insight about the BPO operational risks from the service providers’ perspective, which can draw further research interest and attention.
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