The service machine as a service operation framework

Abstract

Purpose – Understanding and depicting service operations is important, as the contractual agreements have become more complex, particularly in offshore outsourcing. The purpose of this paper is to introduce the Service Machine as a metaphor and a parsimonious conceptual framework for analyzing outsourced service operations in a Business‐to‐Business‐to‐Consumer context. Conventional machines have frames or platforms that connect various components. The equivalent of a machine in services is a system of contracts linking a client, a service provider, and the end‐users. Clients have the interest to know how, when, where, by whom and with what instructions are their operations being produced. As a result depicting both the service operations and the contractual framework becomes increasingly important.Design/methodology/approach – Through a review of the existing theoretical literature on outsourcing, operations management, contracting and governance, the paper explores a new conceptual model for governing ou...