Project Objective
In this present era, achieving competitive advantage always requires the excellence in every function but it is difficult for any organisation to maintain all business function equally. Achieving excellence in every function is difficult and it can destruct any organisation for their core business activities. For this reason, business outsources one or more non-core function of their organisation. This proposal is intended for describing the disadvantages as well as advantages of the outsourcing.
The main objectives of this research are as follows:
- To critically evaluate the influence of the outsourcing in achieving profit
- To identify the positive as well as negative impact of the outsourcing on different business function
- To provide some suggestion that can help different organisation to reduce the negative impact of outsourcing
Project scope mainly includes deadline, tasks, functions and goals of any project.
- The research will identify the importance of outsourcing in an organisation
- This research includes the identification of the pros and cons of outsourcing.
- This project do not include the outsource project of any organization briefly
Outsourcing refers to process by which any company allocates some of the non-core units of their organisation to the other organization who has the potential to conduct the job more effectively. As stated by Kotabe and Murray (2014), it is very much difficult for any organization to handle their entire business unit with effectiveness. Additionally, most of the processes related to businesses are temporary in nature for this purposes most of the organisations do not want to hire their in-house professionals for performing their short-term tasks. There is a range of key factors that is responsible for the creation of the outsourcing, the main reason behind that is there are deficiencies in the lack of experts in some parts of the business related processes. Other factors are access to the cheaper labours and ability in concentrating on the other important business process.
Outsourcing can provide a range of advantages to the business organisations such as outsourcing provides the access to the experts, professional as well as high-quality services, outsourcing can make any organisation more adaptable and flexible to change and it can help any company to save the capital expenditure. Outsourcing can help any business to outsource different types of non-core activities so that they can provide more concentration on their main business function (Barney and Wright, 2012). A business unit can streamline the business operations through the outsourcing and it also helps the organization to get the assurance that their business functions would be carried out effectively as well as efficiently.
Despite the advantages, outsourcing process also has some disadvantages such as it decreases the control of management in a certain business function (Teng et al. 2013). For example, outsourcing the recruitment process to another firm decreases the control of a particular organisation on the recruitment process because it makes them relied on the other firm’s process. Outsourcing can create the potential redundancies and for outsourcing, any organisation may suffer due to the lack of customer focus. As stated by Abdur Razzaque and Chen Sheng (2011), outsourcing is cost effective but there might have some hidden costs such as legal costs that are mainly incurred during signing a contract.
Project Scope
Main questions related to this research are as follows:
- What are the positive as well as negative impact that outsourcing creates on an organisation?
- What is influence that outsourcing creates on any company?
- What are the problems that any organization faces due to outsourcing project?
- What is the possible way by which the negative impact can be reduced?
As stated by Newman and Benz (2013), research methodology is the process that is used to collect different information as well as data in order to make a different business decision. Both the primary as well as secondary information is important for this research. For the conveyance of the research, the researcher will utilise the post-positivism philosophy, descriptive research design and deductive research approach. Among this information, secondary data will be collected from different published resources such as published books, journals, websites and newspaper. On the other hand, primary data are collected from the sample respondents. For the collection of the primary data, the researcher has utilised both the quantitative along with the qualitative research.
This research method emphasises the measurements of objective and conducts mathematical, numerical as well as statistical data analysis on the collected information (Vujaklija et al, 2010). Quantitative research mainly focuses on the collection of the numerical information for explaining a phenomenon. Quantitative research is important to collect reliable information because it utilises statistics for generalising a thing. This research is effective to restructure and reduce the different complex problem and this research is also effective for tests hypothesis or theories.
In order to conduct quantitative data, selection of proper sampling frame is important. For this purposes, the researcher has approached 55 sample respondents from the market, however, only 46 respondents were agreed to provide their feedback related to the cons as well as pros of outsourcing. For selecting the sample respondents, the researchers have utilised the random probability sampling technique. Random probability sampling is the sampling technique that provides equal chances to every respondent.
For the collection of quantitative information, mainly publication of the research, interview, and survey mainly utilises. Among it, the researcher mainly selects the survey strategy so that statistical information can be collected from the sample respondents.
For collecting useful information regarding the topic, the researcher mainly selected employees who are working in a multinational organisation as the sample respondents for research.
In any research, a variable is a thing that has a quality as well as quantity that can be varied. Here the variable related to this particular research is advantages as well as disadvantages regarding the outsourcing.
Dependent variable can be defined as the variable in which the researcher is interested. As stated by Mackey and Gass (2015), a researcher measures the dependent variables with the fancy technique so that the researcher can conduct the research with effectiveness. Therefore, the dependent variables for this research are evaluation of the outsourcing’s impact. On the other hand, independent variable of a research is the variable that is believed for affecting the dependent variable. Hunleth (2011) demonstrated that independent variable is the variable that is manipulated by the researcher to see if there are any change that is happened to the dependent variables or not. Here the independent variable is how much positivity or negativity is created by the outsourcing. Independent variable can be defined as the variable upon which the researcher has the control.
Included Scope
In the statistical modelling, regression analysis is one of the statistical processes that can help in estimating the relationship between different variables. Regression analysis mainly includes a different technique that can analyse and model different types of variables where the main focus is on an effective relationship of independent with the dependent variables. This analysis mainly estimated the expectation of these dependent variables in the perspectives of the independent variables (Gall et al. 2011). There is one of the regression functions in the regression analysis that is the function of the independent variables. Therefore, in regression analysis, there are mainly three individual variables such as dependent variables (Y), independent variables (X) and the unknown variables (β). This variable can be calculated based upon the following formula
Y?? f(X, β)
There are mainly two different methods for facilitating the data analysis that is qualitative data analysis technique and quantitative data analysis technique (Panneerselvam, 2014). Among them, the researcher has utilised the quantitative data analysis technique. There are a number of methods in the quantitative data analysis technique such as descriptive statistics, simultaneous equation models, graphical representation, correlation, factor analysis, tabular representation etcetera. Among them, the researcher has utilised the graphical representation and tabular representation because this two data analysis method represents data more clearly and helps to gather a clear picture regarding the exact outcome.
As stated by Taylor et al. (2015), qualitative research is exploratory research in nature that is intended to gain a clear understanding regarding different underlying opinions, reasons as well as motivation. Qualitative research can help the research to achieve a brief insight regarding the problem and it also helps in developing the hypothesis or ideas for the quantitative research.
In order to collect the qualitative data regarding the research, the researcher has utilised the interview process on the sample respondents. For collecting the qualitative information the researcher first makes an effective plan to take the sufficient sample respondents. After deciding the sample size, the researcher has decided the criteria for the sample respondents and then conducts an effective interview on them to collect the specialised information that can help the researcher to gain an effective insight regarding research topic.
In order to conduct this particular research, post-positivism philosophy will be utilised among interpretivism, realism, positivism and post-positivism. The main reason behind selecting post-positivism philosophy is this philosophy can help the researcher to conduct this research from the meta-theoretical perspectives that can allow the researcher to get intended outcome by both the theoretical studies and personal beliefs (Amaratunga et al. 2012). Among inductive and deductive research approach, the researcher has utilised the deductive research approach because it helps the researcher to collect a huge amount of data regarding research topic. Three different research designs are three different research designs are there as exploratory, explanatory and descriptive among which descriptive research design will be selected because it helps the researcher to conduct an in-depth analysis of the data that already exist.
Excluded Scope
For the collection of the qualitative information, the researcher first approached to 6 line manager of a different organisation that outsourced some of their business functions. However, among these 6 sample respondents for qualitative research, 4 sample respondents were agreed to provide their feedback to the researcher.
Mainly two different types such as probability and non-probability sampling techniques are there that can help any researcher to decide their sample respondents (Geerts, 2011). Among these two different sample respondents, the researcher will select the non-probability sampling technique so that useful and quality data can be collected from the sample respondents. There are different advantages of the non-probability sampling that are it is used during the unavailability of the population lists. This sampling is not random so that finding the appropriate sources of data collection is easier. It is very much convenient as well as cost-effective and it is effective for generating different ideas and achieving quality feedback.
For the collection of data, the research instrument is interview technique. Qualitative research is one of the researchers that are reliable for collecting useful information that is valid in nature. In order to achieve effectiveness in collecting information from the specialists of the field, the researcher will conduct a pre-testing. As per the viewpoint of Mahoney and Goertz (2016), pretesting refers to the testing of the questionnaire on the small samples of respondents before conducting the actual process of study so that single possible error became removed from set of questionnaire.
Several data analysis technique such as interview, case study, ethnography, graphical as well as pictorial presentation, triangulation, and discourse analysis, phenomenological approaches can analyse the qualitative data. Among these data analysis technique, the researcher will utilise the interview techniques and achieve an intended results. The results of quantitative as well as qualitative research will clearly describe different advantages and disadvantages that any company can face in their real working environment. The result will also provide some recommendation by which the disadvantages can be avoided.
Research Limitation
For successfully completing this research, a huge amount of primary and secondary information has been collected by researcher. The main problem that is faced by the researcher is related to the time and money. Due to lack of time, the researcher has faced difficulties in conducting in-depth data analysis. A lesser amount of time also restricts the number of sample respondents for the research. On the other hand, money constraints limit the access of the paid materials. The secondary information has been collected from the published books, journal and website so that there is huge possibility that those data get to be obsolete.
Conclusions
From the above discussion, it can be clearly understood that outsourcing has several advantages but it has also some disadvantages. Therefore, in order to achieve competitive advantage and reduce the disadvantages, different strategy need to be adapted so that disadvantages can be reduced. While conducting this research, the researcher has faced different limitation that creates an obstacle to achieve clearer view regarding the research topic.
Reference List
Abdur Razzaque, M. and Chen Sheng, C., 2011. Outsourcing of logistics functions: a literature survey. International Journal of Physical Distribution & Logistics Management, 28(2), pp.89-107.
Amaratunga, D., Baldry, D., Sarshar, M. and Newton, R., 2012. Quantitative and qualitative research in the built environment: application of “mixed” research approach. Work study, 51(1), pp.17-31.
Barney, J.B. and Wright, P.M., 2012. On becoming a strategic partner: The role of human resources in gaining competitive advantage. Human Resource Management (1986-1998), 37(1), p.31.
Mackey, A. and Gass, S.M., 2015. Second language research: Methodology and design. Routledge.
Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.
Gall, M.D., Borg, W.R. and Gall, J.P., 2011. Educational research: An introduction. Longman Publishing.
Panneerselvam, R., 2014. Research methodology. PHI Learning Pvt. Ltd..
Johnson, B. and Christensen, L., 2010. Educational research: Quantitative and qualitative approaches. Allyn & Bacon.
Kotabe, M. and Murray, J.Y., 2014. Global sourcing strategy and sustainable competitive advantage. Industrial marketing management, 33(1), pp.7-14.
Mahoney, J. and Goertz, G., 2016. A tale of two cultures: Contrasting quantitative and qualitative research. Political analysis, pp.227-249.
Geerts, G.L., 2011. A design science research methodology and its application to accounting information systems research. International Journal of Accounting Information Systems, 12(2), pp.142-151.
Vujaklija, A., Hren, D., Sambunjak, D., Vodopivec, I., Ivaniš, A., Maruši?, A. and Maruši?, M., 2010. Can teaching research methodology influence students’ attitude toward science? Cohort study and nonrandomized trial in a single medical school. Journal of Investigative Medicine, 58(2), pp.282-286.
Hunleth, J., 2011. Beyond on or with: Questioning power dynamics and knowledge production in ‘child-oriented’research methodology. Childhood, 18(1), pp.81-93.
Newman, I. and Benz, C.R., 2013. Qualitative-quantitative research methodology: Exploring the interactive continuum. SIU Press.
Teng, J.T., Cheon, M.J. and Grover, V., 2013. Decisions to outsource information systems functions: testing a strategy?theoretic discrepancy model. Decision Sciences, 26(1), pp.75-103
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