Purpose: This research aims to develop a digital capability maturity model to find the critical capabilityand define the maturity level of the digital services creation process for the Business Process Outsourcing(BPO) company, which services cover the end-to-end client’s non-core activities involving people, process,and technology.Design/methodology/approach: The study conducts qualitative approaches in variables selection usinggrounded theory, followed by in-depth interviews and focus group discussion confirming the chosenvariables as relevant capabilities. Additionally, quantitative approaches are used to define the impact ofthose capabilities on the process through an online survey of 208 employees and Structural EquationModelling (SEM) for model analysis.Findings:The research proves that alignment strategy has a positive impact on the organizational andindividual capabilities, both of which have a positive impact on the process. All capabilities are defined inthe “quantitatively managed” maturity level, while the collaboration culture and value creation skills arerequired to be prioritized in development for having a significant driver yet an inferior performance.Practical implications:The proposed model is built to be generally utilized to help the BPO companiesunderstand their critical capabilities and improve their maturity level to lead the industry. The researchcontribution is not only to develop a model that is suitable for a particular business but also to create morevalue for academic purposes through improving the model by introducing a new variable “alignmentstrategy” and “organizational capability” as an essential component influencing the process.Originality/value: This is a multimethod study that elaborates empirical evidence, literature review, andprofessional judgment to assess the capabilities of the digital services creation process, prove theimportance of alignment between those capabilities, and define the process maturity level
