BUSN20019 - Impact of Cloud Computing on Business Process Outsourcing

This report investigates the impact of cloud computing on business process outsourcing (BPO). It examines cloud computing as a strategic model offering on-demand access to shared computer resources, highlighting its potential as a cost-efficient alternative for IT requirements. The research focuses on understanding the implications of cloud-based information systems in the BPO sector, using an outsourcing triangle model. It explores the theoretical contributions of reversed cloud computing and virtual organization frameworks in B2B service providers, emphasizing the benefits for small and medium-sized enterprises (SMEs). The study employs a positivism research methodology with a deductive approach, utilizing both primary and secondary data sources to assess the positive and negative impacts of cloud computing implementation in BPO, ultimately aiming to optimize business operations.

Running head: CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
Topic: Impact of Cloud Computing on Business Process Outsourcing
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1CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
Executive Summary
Cloud computing is regarded as a strategic model which has the ability to provide access to
the schedule of computer national resources in real time at an on-demand basis. Ever since its
initiation and Inception within the business organisational context, it has been found as a cost
efficient resource providing convenient manners and involving minimum interactions with
the cloud provider that can help with the business operations of an organisation belonging to
any industries. Therefore various organisations has been trying to research on the cloud
computing techniques to make sure that the emerging Technology can be used as a credible
alternative for all the IT requirements of an organisation. In this way the organisation would
only want to make sure that their quality of service is enhanced and huge set of issues are
cleared out regarding the operations of an organisation. on the other hand there is not much
research addressed to the issues in curing with the cloud computing services and it is not a
well researched zone where the implications and impact of cloud computing utilisation over
the operations of an organisation. This is why the following research is followed to
understand the introduction of cloud based information system in a specific, taken for this
research as the BPO sectors. This research setting would be depicted through an outsourcing
triangle which every client company in the BPO sector follows to operate. The research
process would follow the main theoretical contribution of a reversed cloud computing an
option framework and the framework of a virtual organisation in the professional B2B
service providers. They should make sure that the small size and medium sized business
Enterprises or the SMEs in having a proper researched implementation of cloud-based
services to benefit the organisation. The research below thus makes sure which of the
implications and impact of cloud computing system can be research about father to make sure

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that the cloud computing services offered the best possible way of running the business
organisation and its operations.

3CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
Table of Contents
Introduction................................................................................................................................3
Justification of the research................................................................................................3
Aim of the research............................................................................................................4
Research objectives............................................................................................................4
Research Questions............................................................................................................5
Critical Literature Review......................................................................................................5
Methodology Applied for the analysis...................................................................................7
Research Methodology.......................................................................................................7
Justification of the chosen Research Methodology............................................................7
Secondary Data Analysis.......................................................................................................8
Discussion of Findings from the literature review...............................................................12
Recommendations................................................................................................................14
Conclusion................................................................................................................................15
Limitations of the Study...................................................................................................15
Future Scope of the Study................................................................................................16
References................................................................................................................................18
Appendix..................................................................................................................................21
Questionnaire.......................................................................................................................21

4CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
Introduction
Cloud computing is basically model that provides the customers with an access
generated on demand from a shared pool of resources dug out from the computational source
which is convenient as well as cost efficient. Business process outsourcing on the other hand
is a sector where cloud computing can be utilised to make sure that multiple parties are able
to access data as well as business application simultaneously in real time. This process does
not depend on the existing IT infrastructure of the parties and therefore a shared space for
both the clients as well as the professional service provider forms within a cloud based
information system (Oshri, Kotlarsky & Willcocks, 2015). This is not found traditionally in
the local IT system and their traditional set up. The traditional outsourcing arrangements
provide the outsource tax to be performed within the internal information of the provider
system. Therefore it is quite easy to understand why business processes want to implement
cloud computing within their industry. However this obviously has a lot of impact on the
traditional business processes and legacy systems. This report will therefore, find the genuine
impact of the cloud computing in business process outsourcing. The justification of the
research process, the aim of the research and the objectives of the research questions will be
framed as below in the report (Willcocks, Lacity & Craig, 2016).
Justification of the research
The research can be considered as a justified one since it forms the efficiency in work
integration management. The study developed has generated the integration of the formation
with the management of development in this particular sector (Norman & Venter, 2016). The
report is completed along with the research decorated over the impact of cloud computing on
business process outsourcing; efficient formation of the management operations would be

5CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
easier to employee within a business process. Innovative integration of Management
processes can also be developed if the impact of the cloud computing in Business process
outsourcing is found to be beneficiary.
Aim of the research
The proper aim of the study is to generate the understanding of the particular role of
cloud computing in business operation outsourcing. All the formation that the research has
employed would focus on the integration of proper management within the generation of
work from the employees involved within the process (Willcocks, Oshri & Kotlarsky, 2018).
With the collection of relevant information about the impact of cloud computing on business
process outsourcing, the hidden information about the impact being positive or negative
would also be identified from this research.
Research objectives
The objectives of this research would be to find if the impact of the cloud computing
integration within a business process outsourcing is positive or negative in nature. This would
be identified with a secondary data research as well as a primary data research. The
secondary data research it consists of a set of questionnaires that would be asked to a
collection of people relevantly picked (Burgess, Ravishankar & Oshri, 2015). The other half
of the primary data research would be conducted through a proper literature review based
upon all the words that the previous researchers have done on the same topic. With the real
world analysis and research work of the previous analysts and researchers, a critical analysis
would we put forward based on all the works done before and individual discretion of a
reader. This would be the primary objective of the research, to find out the impact and all the
hidden information associated with it about cloud computing implementation in business
process outsourcing.

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Research Questions
The following are the study questions for the project of Cloud Computing on Business
Operation Outsourcing,
 What are the points affecting the cloud based computing for business
composition?
 How efficient is the formation of the innovative work integration for Business
Operation Outsourcing?
Critical Literature Review
Business process outsourcing is first and foremost a B2B service. Therefore the
outsourcing of the professional B2B services within the context of cloud computing for the
SMEs is important. There for various researchers need to find out the outsourcing
arrangement (Carmel, Lacity & Doty, 2016). They have already been various research is
conducted on the arrangement of the outsourcing from three different perspective, namely,
the client company, the professional service provider like an accounting firm, or a cloud
based information system like and accounting information system.
The key concepts that are regulated during the study process are about business
process outsourcing, cloud computing, and virtual organising. According to the authors
Ismail and Aman (2018), cloud computing is a paradigm of the emerging trends in Computer
technology which has created opportunities for both professional service provider and IT
service providers. Therefore its utilisation in business is becoming more and more with every
passing day and becoming much more widespread as a research topic. various authors has
been utilising their research methodologies to make sure that technical focus during the early

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stages of business and its changes all through the years with the utilisation of cloud
computing is analysed properly.
The authors Demirbas, Gewald and Moos (2018), suggest that the cloud storage offers
strategic flexibility to a business since there are no constraints of hardware and the
dependency on the service providers are much decreased along with accessibility in a
ubiquitous way. This is why most organisations are keen on implying the cloud computing
services within their business process. However some are for the opinion that there is hidden
complexity that builds in the delegation of burden on the IT management to the cloud service
provider.
Amongst the outsourcing processes, business process outsourcing or BPO is also a
client organisation base where the business processes are outsourced true and external third
party intrusion. According to Baudoin (2018), the BPO organisations should include it
processes within its business operation. This is because the theoretical framework that BPO
related decision making process goes through is relevant to the desert great occasion of global
services according to the transaction cost economy. This is why the utilisation of cloud
computing in the BPO sectors are noticed in the recent times (Larsen, Manning & Pedersen,
2018). The utilisation has thus many researchers analyse the utilisation of cloud computing
and its impact in the business processes of the BPO sectors.
Virtual organizing on the other hand is elaboration process where ICT based
organisation have a liberated work environment from the physical element and allows remote
work accesses. Virtual organisation is also relevant to this issue as various authors Ismail,
Amanb and Mohameda (2018), are of the opinion that the taxonomy includes three types of
virtual organisations, namely, internal outsourcing and networked, that depends upon the
utilisation of cloud computing within the assessment of the impact in BPO sectors.

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Methodology Applied for the analysis
Research Methodology
The research methodology that is applied by various analysts to find out the impact of
cloud computing in the BPO sector is entirely based on the theory of Positivism taken for
researching on the methodology (Lal & Bharadwaj, 2016). A comprehensive idea is does
gain from the research and the information generated due to the research methodology
conducted on finding out the impact of cloud computing on BPO sector. In this case the
research approach that is followed through is Deductive in nature which is utilised for
developing the analysis for the through the study mostly based on the secondary data sources
(Manzoor, 2016). For the next step of the research a Descriptive Design is followed by which
a researcher would be going through this research can easily access the hidden information
generated from the raw data which would be evaluated through the data analysis process.
Therefore the research methodology that is processed in this way would be both based on
primary and secondary data resources to find out the impact of cloud computing in BPO
sector. On the other hand any person who would want to gain access on the inside
information through the research process would be accessible to the raw data followed by the
data analysis techniques like regression qualitative and quantitative methods.
Justification of the chosen Research Methodology
According to research is conducted by various research philosophers, the theory of
Positivism is justified for applying within the process and can be deemed as appropriate
because it identifies all the hidden information that is excavated for making out the
information inside the barriers of the process and the implementation of the ideas for finding
out the implication and impacts that cloud computing generates on the BPO sectors
(Malherbe, 2018).

9CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
The Deductive Approach is utilised for conducting the study in finding out the impact
of cloud computing in BPO sectors and it can be justified since this analysis process develops
a hypothesis of evaluating the research objective (Yahya, 2016). This process ensures that the
authenticity of the hypothesis is maintained following the criteria examination for selection
and reduction. Along with that there is no new concept or theory to be proposed for the in the
study and only the basis of the research would fall from the base topic which is the impact of
cloud computing in BPO sector (De Silva, 2019). This is further configured by the inductive
and deductive research approach to be eliminated from the system of research methodology
techniques applied.
Secondary Data Analysis
1. Do you believe that the organizational structure is maintained as before due to the
implementation of the Cloud Based Infrastructure?
Figure 1: Do you believe that the organizational structure is maintained as before due to
the implementation of the Cloud Based Infrastructure?
(Source: Created by Author)

10CLOUD COMPUTING ON BUSINESS PROCESS OUTSOURCING
The people taking part in the questionnaire where first ask if they believe that the
organisational structure is maintained before as due to the implementation of the cloud based
infrastructure. To this mostly all the people have agreed strongly as they believe that even if
cloud-based infrastructure is a new technology to be implemented within the system, there is
no particular change within the organisational structure. They believe that all the task
performed are going on smoothly.
2. Do you think that the implementation of Cloud Infrastructure is creating a negative
impact on the BPO sectors?
Figure 2: Do you think that the implementation of Cloud Infrastructure is creating a
negative impact on the BPO sectors?
(Source: Created by Author)
in the next set of the questionnaires the people were asked if they think that the
implementation of cloud infrastructure is creating a negative impact on the BPO sectors. To
this question, mostly the people have answered that the cloud infrastructure is creating a
strong negative impact on the BPO sector, but on the other hand there are some set of people
who strongly disagree with this question and they would like to put forward that there is
always a positive change in the BPO sector is after the implementation of cloud

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infrastructure. therefore it means that there is a mixed reaction of people for the
implementation of cloud infrastructure as it is a very new technology to be introduced into
the legacy system.
3. Do you believe that both the organization and the employees are benefitted by the
cloud based systems in BPO sectors?
Figure 3: Do you believe that both the organization and the employees are benefitted by
the cloud based systems in BPO sectors?
(Source: Created by Author)
In the next set of the questionnaire, people were asked that if the belief that both
organisation and the employees urban benefited with the implementation of the cloud based
system in the BPO sector. Today's there is a neutral reaction as people have neither agreed
nor disagreed to the fact. Therefore there is a mixed reaction with the implementation of the
cloud based system in the BPO sector as a portion of the employees believe that the work
would be hampered due to the implementation of the new systems. Where another question
believes that work culture and operations would be elevated due to this implementation.