Author(s): Mehta, A. M., Saleem, H., Hafeez, I., Ali, A., & Rahi, S.
In spite of the fact that business process outsourcing (BPO) is widely spreading phenomena nowadays to lessen certain costs associated with projects, on the other hand, there are a lot of risks associated with these projects that affect the effectiveness of outcomes. To check the impact of different BPO risks on vendor teams’ effectiveness, we develop a model of knowledge management capability (KMC) theory and risk-based view. Effective response rate was 270 through questionnaire from the employees of telecom industry. Empiric verification shows that operational risk and strategic risks influences the efficiency of vendor teams (EVT) in a negative way. However, to lessen this effect, cultural and technological degree of knowledge management proficiency is being used. To achieve effective risk management, different BPO risks and knowledge management capability should be incorporate.