What Affects Perceived BPO Benefits of Ventures?

[Purpose]This paper suggests BPO(business process outsourcing) is the strategic option for firms in the process of competitive realization. This study investigates the BPO process focused on the key antecedents affecting cognitive perception of BPO benefits to gain relevant knowledge. [Methodology]Factor analysis and hierarchical multiple regression analysis are employed for the empirical procedures, using PASW Statistic 18. Four hypotheses were established to test based on the literature. Data were collected by a survey method and 99 venture firms participated in this study from various types of industry. [Findings]Proposed model explains four key findings: Cost reduction has a positive effect on the perceived BPO benefits. Core competence has also significant relationship with BPO benefits perceived. However, specialized resource does not give any impact on the BPO benefits. Quality improvement is significantly related with the perceived BPO benefits. [Implications]BPO suppliers need to develope their competence on how they can conduct a specific business process with cost－effective way and far better than the client firms. Consequently, BPO suppliers need to equip with unparalleled capabilities to support their client firms in terms of providing cost reduction, core competence and quality improvement.