Measuring value progress in outsourcing organizations

Abstract

Purpose – The purpose of this paper is to develop and validate a scale for measuring value progress in outsourcing organizations. The scale is also intended to capture the differences in the nature of progress between different categories of outsourcing organizations.Design/methodology/approach – The procedure for developing measures suggested by Churchill was adopted. The balanced scorecard framework has been used to generate items. Data were collected from 693 employees in 49 outsourcing organizations in India (specifically, those categorized as knowledge process outsourcing (KPO) and business process outsourcing (BPO)) and the scale reliability and validity was tested using content validity, exploratory and confirmatory factor analysis, and co‐efficient alpha scores. Confirmatory fit indices have been used to establish validity and unidimensionality of the measures.Findings – The study statistically establishes a tool to measure progress of outsourcing organizations. The findings reveal that some organ...