From BPO to BPM: An Assessment of the BPO Vendor's Ability to Make a Successful Transition

While traditional BPO has been an ‘as-is’ business process execution by a vendor with minimal client intervention with cost benefit being the principal motive, BPM, on the other hand, is the management of processes for the client where the objective is to deliver both cost as well as value to the process stakeholders. Thus success metrics of a vendor’s ability to execute BPM projects are likely to be significantly different from traditional BPO projects. Practitioner articles mention about specific vendor attributes that are crucial; however, the process that enables successful transition from BPO to BPM initiatives is not theoretically understood. Drawing from past research we develop a conceptual model and validate it with a case developed in the context of an Indian BPO vendor. The findings highlight the process through which reciprocal communication and shared understanding of BPM objectives are developed, leading to vendor’s success with BPM initiatives.