European Journal of Business Science and Technology 2026, 12(1):74-89

Evaluating the Financial Implications of Business Process Outsourcing: A Case Study of Miza International Co. in Saudi Arabia

Elgaili Ibrahim Baloola Elbashir¹, Tarig Bastami Elgozuli Abdelrahman²

¹ Al Yusr Leasing & Financing, Riyadh, Kingdom of Saudi Arabia

² Road Project Contracting Company, Jeddah, Kingdom of Saudi Arabia

This study examines the financial implications of business process outsourcing (BPO) in the context of Saudi Arabia’s Vision 2030 economic diversification agenda, using Miza International Co. as a case study. Drawing on Transaction Cost Economics and the Knowledge-Based View, the research analyzes how BPO selection quality and cost-management practices influence firm-level financial performance. Data were collected from 384 stakeholders and analyzed using multiple linear regression. The results indicate that both effective BPO selection (β = 0.234, p < 0.001) and cost management (β = 0.168, p < 0.001) significantly enhance financial performance, jointly explaining 47.5% of the variance. Strategic alignment emerged as the strongest predictor, suggesting that BPO functions primarily as a strategic value-creation mechanism rather than solely a cost-reduction tool in this emerging market context. The findings provide practical and policy-relevant insights for firms leveraging outsourcing to support national diversification objectives.

Keywords: business process outsourcing, financial performance, Vision 2030, emerging markets

JEL classification: D23, L24, M11, M15, M16, O32

Received: September 29, 2025; Revised: February 17, 2026; Accepted: February 23, 2026; Published: June 30, 2026  Show citation