This research report relies on the topic ‘advantages and disadvantages of outsourcing the business functions. This report discusses the data collection method and different approaches that will be undertaken by a researcher to attain the research objectives. Outsourcing is used as a procedure in which the organization transfers their business functions to other corporation to perform these functions by paying a charge for it. It also indicates that the business function could be performed by the third-party organization as compared to attaining them by internal teams (Cavusgil, et. al., 2014). This procedure is beneficial to decline the business cost and performed a business function via experts. This research focuses on the advantages and disadvantages of outsourcing the business function by gathering reliable information from different sources (Schniederjans, et. al., 2015). This research also discusses different methods for conducting the research in a specified time period.
The main aim of this project is to evaluate the advantages and disadvantages of outsourcing the business function. The below objectives will be used to attain the key aim of this research:
Outsourcing is a process by which business activity is performed by the third-party organization. It is effective to avoid the constraint that may affect the business performance and expand their business rapidly. This research is beneficial for readers to understand the meaning and concept of outsourcing the business function. It is also significant for companies to gain depth understanding regarding advantages and disadvantages of outsourcing the business function. This research has a wider scope of a start-up business and telecommunication companies because it faces different constraint to run their business like time, cost and resources (Gerbl, et. al., 2015).
Willcocks and Cullen (2013) evaluated that outsourcing is used as the business procedure by which a company outsources significant certain business activity to a third-party company. For illustration, a telecom company may outsource the customer service business function to third party Company who has the competency to deal with customer services. It is evaluated that in the current scenario, outsourcing becoming a large industry which is known as business process outsourcing. There are several activities is performed by business in their day to day practices. These functions could be outsourced from different job function such as janitorial facilities and housekeeping services of large office construction. Hence, there is need to manage the services as a new flow of the business performance (Sekaran and Bougie, 2016).
In support to this, Rushton et al. (2014) evaluated that outsourcing the business function could be beneficial to save the cost of the company because the company can outsource the business function where the cost of production is low. Moreover, outsourcing facilitates the company to reduce the compensation expenses of employees, office space costs and other expenses associated with offering workplace. It is also essential to avoid the setup cost of production and declines the resource requirement with another purpose.
Cavusgil et. al. (2014), exhibited that outsourcing facilitates the company to more focus on the technology and main function of the company. It is also defined that while a corporation works on outside their proficiency then they have the option of outsourcing the job activity. Since, it would be prominent to run the day to day practices effectively within an organization. For illustration, while a grocery store plan to add the florist in their business then they can outsource the business activities with more emphasis on core business function of grocery (Liu and Wang, 2014).
In contrast to this, Sekaran and Bougie (2016) illustrated that outsourcing is significant for the company to enhance the quality. Furthermore, the company can deliver the quality by outsourcing the business function to a third-party organization that has specialization and proficiency in the business process. For instance, the corporation can build contract with respect to cleaning facilities. Moreover, outside services are significant to hire, train and inspect the employees for specific business activity as it could not be performed via in-house. The advantage of making a contract with the vendor is that company is liable to facilitate the different services with high quality. For illustration, while IT function as a company is outsourced and the technician suffers from sick then there could be accountability of third party Company to find someone to replace them. As a result, it would be beneficial to meet the needs of the corporation. This could be also effective to deliver customer satisfaction to a larger extent (Rushton, et. al., 2014).
In favored to this, Hill et al. (2014) exhibited that outsourcing of business function could be effective to enhance the efficiency of business operation. Moreover, it facilitates different opportunities for the corporation to obtain specialized services due to proficient vendors. Outsourcing provides high efficiency and allows for delivering the prompt services with high quality due to consider the specialized business process. It is stated that capacity could be increased by the company by outsourcing the job activity because the contract of outsourcing could be canceled at any time. Furthermore, it is effective for the company because there is no need to close down the whole plant as the contract can be canceled in case of declining demand. As a result, it could be evaluated that outsourcing is significant to improve the resilience at the workplace as it can have a positive impact on the business performance (Jeston and Nelis, 2014).
According to Liu and Wang (2014), outsourcing may generate quality and legal risk for a company. For illustration, when a car manufacturing company is unable to maintain the defective parts then it could be outsourced from third party organization. The car manufacturer has the burden of appropriating the potentially damaged goodwill of the car maker. Furthermore, outsourcer needs to maintain goodwill for the default products and improving the perception of customers towards the company. It is stated that outsourcing may produce poor service quality unless a contract identifies measurable process regarding quality service reporting. There are few contractors which deliberately leave the service quality as it unable the company to save the cost.
In opposed to this, Jeston and Nelis (2014) discussed that outsourcing may generate the language issues for executives of the company. For illustration, when a company outsources the customer call center to the third-party organization then the company needs to interact in different languages. Therefore, there could be the possibility of arising dissatisfaction level among the customers due to language issue at large extent. Along with, workforces make unfavorable perception about outsourcing the business function as they have fear of loss of job within an organization. Consequently, they can decline the efforts from performing the task in an efficient way. Hence, there is a requirement of organizing the opinion of workforces for gaining their efficiency.
Literature gap
The above discussion relies on the advantages and disadvantages of outsourcing the business function which does not feasibly depicts the process associated with effective implementation of such ideas. Research discussed that there are difficulties to obtain statistical facts and figures regarding outsourcing the business function. There is also insufficient information regarding the company that uses practical evaluation. It creates difficulties for a company to broaden the evaluation regarding gathered facts and figures, and theoretical concept (Krush, et. al., 2015).
The research design is significant to offer the appropriate direction for gathering the ideas and assess the findings related to research issues. There are distinct kinds of research design is used to complete the research aim and objectives (Caruth, et. al., 2013). It is described as follow:
In the beginning, the researcher will create the questions in which each question will be related to research matter. After this, the researcher will choose the feasible research issue as per their interested area and access different sites with regards to the issue of research. Subsequently, the researcher will construct the conceptual structure and theoretical aspects to arrive at the valid conclusion. This research procedure is implemented to build the theories with respect to advantages and disadvantages of outsourcing business function (Prpi?, et al., 2015).
Approaches to reliability and Validity
A researcher will implement the inductive approach because research topic is based on subjective nature of research issue. This research approach will permit a researcher to generate conceptual structure and theories associated with research subject and also enhance the trustworthiness of findings of research (Tukker and Tischner, 2017).
Sampling and Sample Size
Sampling is a procedure of choosing the participants from the high amount of respondents. For this research, the researcher will choose the non-probability sampling technique due to qualitative-based research. But, this sampling technique will take longer time and high cost due to implementing open ended-questionnaire for conducting the interview. Along with this, 10 managers will be chosen who are involved in outsourcing process (Runar Edvardsson and Durst, 2014). These managers have chosen from Telstra, Optus and Foxtel Telecommunication Company which engaged in outsourcing the business function.
Data Collection Method
Primary data gathering technique would be implemented to conduct the research in an appropriate manner. This information will be pooled via survey through questionnaire as it facilitates the researcher to collect the huge data from targeted respondents. This method is beneficial to pool the fresh data regarding research subject as it aids to reach reliable and valid conclusion (Pearce, 2014).
Variables Specifications
For this research purpose, different kinds of the variable will be considered by a researcher to complete the research aim and objectives. These variables are independent and dependent variables. Independent variable is the outsourcing of business function and the dependent variable is business practices of different telecommunication corporations (Markus and Jacobson, 2015).
As per the above diagram, it can be evaluated that initially, research will generate a theory and hypothesis. After this, the researcher will generate research design and construct the device which can measure the concept. Afterward, a researcher will choose realistic sites regarding research issues. Subsequently, a research will opt for research subjects and manage the different instruments to complete the researcher issue in a specified time period. After that, the researcher will pool the data and analyze it via using descriptive statistical tools. It will enable the research to assess the findings and arrive at an appropriate conclusion. In the last, a research will write up on the obtained findings (Grama and P?v?loaia, 2014).
Research Instrument
Research instrument is exercised to evaluate the tool by which a researcher will collect the information regarding research issues. A researcher will acquire secondary information via using a wide range of sources such as academic journals, textbook, government publication, online article, and offline publications. This research instrument is beneficial for a researcher as it will be beneficial to pool the authentic information in minimum time and cost (Patil, and Wongsurawat, 2015).
As per the above chart, it can be demonstrated that primarily, a researcher will plan the information regarding research issues. Subsequently, a researcher will select the feasible information from a large number of facts and figures. After that, a researcher will gain the knowledge about the mean, data frequency and recoding of data. Further, several tools will be considered by a researcher to meet the research aim and objectives like descriptive statistics and crosstabs. Subsequently, a researcher will implement the MS-excel to depict the information in a meaningful manner. This software is exercised to demonstrate the data through different kinds of charts like a pie chart, histogram, and column charts and bar diagram. As a result, it enables the researcher to interpret the quantitative information in a comprehensible way (Hair, 2015). Thus, it could be stated that quantitative data analysis process is beneficial to attain the research aim and objectives in a specified time period.
Sampling and Sample Size
A researcher will implement probability sampling technique for conducting this research. Since, this technique allows a researcher to give equal chances to their participants for sharing their ideas regarding research issues. This technique is significant to avoid the biases from the survey through a questionnaire. Furthermore, a researcher will choose 50 employees who are working in business process outsourcing organization. These employees are working in the Telstra, Optus and Foxtel Telecommunication Company, Australia. It would be beneficial for a researcher to obtain a feasible outcome in minimum time as close-ended research questionnaire would be considered for conducting the survey through a questionnaire (Agyemang-Duah, et. al., 2014).
Validity demonstrates the level in which viability of several concepts is assessed in quantitative research. For instance, a researcher will conduct the survey through a questionnaire to analyze the advantages and disadvantages of outsourcing the business function. Along with this, a researcher can implement the reliability method to assess the superiority of quantitative research. For obtaining the reliable information, the researcher will support the quantitative information with the literature review (De Massis, et. al., 2015).
Research Limitations
During this research, the researcher can face complexities to complete the research aim and objectives due to different research issue. These issues could be associated with inadequate cost, time and resources. These constraints will create the difficulties in data pooling procedure. Along with this, there is a certain limitation which could be faced by a researcher to select the sample size for obtaining the survey through a questionnaire (Hair, 2015). For example, a researcher needs to keep the confidentiality of participants as it could have an impact on research outcome.
The research plan is used as a blueprint for obtaining a research in a systematic manner. It demonstrates the planning of activities to complete the research in a specified time period (Sivakumar, et. al., 2015). The plan for this research project is as follow:
|
S. No. |
Research Activities |
Beginning date |
End date |
Time duration (months) |
Description |
|
1. |
Planning of research |
January 2018 |
April 2018 |
4 |
This is starting of research in which the plans are created for a further research study. Furthermore, the plan will be made about how the information should be pooled and which kinds of sources will be used for the same. |
|
2. |
Implementation of plan |
May 2018 |
October 2018 |
7 |
After planning regarding research, a researcher will implement the plan. In this phase, plans are implemented hence research can be completed in a methodological way. |
|
3. |
Data Pooling |
November 2018 |
July 2019 |
9 |
Facts and figures for this research will be pooled via different sources such as primary and secondary sources. Both sources will be used to gained information regarding research issues and accomplish the research aim and objectives. |
|
4. |
Data analysis |
August 2019 |
March 2020 |
8 |
The data will be generated from different sources as data can be arranged methodologically and then will be evaluated as a valid and reliable result can be obtained. |
|
5. |
Interpretation of findings |
April 2020 |
August 2020 |
5 |
After gathering and assessing the information, the next phase will be an interpretation of findings. It would be beneficial to arrive at the conclusion. |
|
6. |
Conclusion |
September 2020 |
November 2020 |
3 |
After the assessment of information and interpretation of findings, the conclusion will be made by a researcher regarding whole research. |
Gantt chart could redefine as a visual demonstration of the action plan which depicts how the research activities will be performed one by one (Patil and Wongsurawat, 2015). It is shown as follow:
Conclusion
From the above interpretation, it can be concluded that outsourcing of business function is used by different organizations because it takes more time. In current business practices, the organization has performed a different function to perform in a single process as it creates complexities to focus on the core function which may decline their competencies and capabilities. For resolving the problem, they outsource the business function for accessing the expertise and to emphasize on the core function. It is analyzed that before outsourcing of the business function, the company should make sure the work quality of the outsourcing partners and should move through its reviews. Along with this, the terms and condition should be developed by which whole process can operate effectively. This research increase the understanding regarding advantages and disadvantages of outsourcing the business function however it relied on the outsourcing partners corporation and level of communication amid them. This research will use the primary and secondary sources to collect the information. The real-life practices of the company are explained to show how it really impact on the companies. It discusses that company relied on different factors that the job activity should be outsourced. It can be summarized that the research design will contain mix research design such as both qualitative and quantitative research design to accomplish the research aim and objectives. In the last, it can be stated that this research will take 8 weeks to conduct all the research activities.
References
Agyemang-Duah, P., Aikins, I., Asibey, O., and Broni, A. O. (2014) ‘Evaluating the impact of outsourcing of non-core functions in the hotel industry: A case study of Anita, Noda and Golden Gate hotels’, European Journal of Business and Innovation Research, 2(3), pp. 25-45.
Beckers, P., and Kloosterman, R. C. (2014) ‘Open to business? An exploration of the impact of the built environment and zoning plans on local businesses in pre-war and post-war residential neighborhoods in Dutch cities’, Urban Studies, 51(1), pp. 153-169.
Caruth, D. L., Haden, S. S. P., and Caruth, G. D. (2013) ‘Critical factors in human resource outsourcing’, Journal of Management Research, 13(3), P. 1.
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., and Rose, E. L. (2014) International business. Australia: Pearson.
De Massis, A., Frattini, F., Pizzurno, E., and Cassia, L. (2015) ‘Product innovation in family versus nonfamily firms: An exploratory analysis’, Journal of Small Business Management, 53(1), pp. 1-36.
Gerbl, M., McIvor, R., Loane, S., and Humphreys, P. (2015) ‘A multi-theory approach to understanding the business process outsourcing decision’, Journal of World Business, 50(3), pp. 505-518.
Grama, A., & P?v?loaia, V. D. (2014) ‘Outsourcing IT–The Alternative for a Successful Romanian SME’, Procedia Economics and Finance, 15, pp. 1404-1412.
Hair, J. F. (2015) Essentials of business research methods. UK: ME Sharpe.
Hill, C. W., Jones, G. R., and Schilling, M. A. (2014) Strategic management: theory: an integrated approach. USA: Cengage Learning.
Jeston, J., and Nelis, J. (2014) Business process management. UK: Routledge.
Krush, M. T., Sohi, R. S., and Saini, A. (2015) ‘Dispersion of marketing capabilities: impact on marketing’s influence and business unit outcomes’, Journal of the Academy of Marketing Science, 43(1), pp. 32-51.
Liu, S., and Wang, L. (2014) ‘Understanding the impact of risks on performance in internal and outsourced information technology projects: The role of strategic importance’, International Journal of Project Management, 32(8), pp. 1494-1510.
Markus, M. L., and Jacobson, D. D. (2015) The governance of business processes. In Handbook on Business Process Management 2 (pp. 311-332). Berlin: Springer.
Patil, S., and Wongsurawat, W. (2015) ‘Information technology (IT) outsourcing by business process outsourcing/information technology enabled services (BPO/ITES) firms in India: A strategic gamble’, Journal of Enterprise Information Management, 28(1), pp. 60-76.
Pearce, J. A. (2014) ‘Why domestic outsourcing is leading America’s reemergence in global manufacturing’, Business Horizons, 57(1), pp. 27-36.
Prpi?, J., Shukla, P. P., Kietzmann, J. H., and McCarthy, I. P. (2015) ‘How to work a crowd: Developing crowd capital through crowdsourcing’, Business Horizons, 58(1), pp. 77-85.
Runar Edvardsson, I., and Durst, S. (2014) ‘Outsourcing of knowledge processes: a literature review’, Journal of Knowledge Management, 18(4), pp. 795-811.
Rushton, A., Croucher, P., and Baker, P. (2014) The handbook of logistics and distribution management: Understanding the supply chain. USA: Kogan Page Publishers.
Schniederjans, M. J., Schniederjans, A. M., and Schniederjans, D. G. (2015) Outsourcing and insourcing in an international context. UK: Routledge.
Sekaran, U., and Bougie, R. (2016) Research methods for business: A skill building approach. USA: John Wiley and Sons.
Sivakumar, R., Kannan, D., and Murugesan, P. (2015) ‘Green vendor evaluation and selection using AHP and Taguchi loss functions in production outsourcing in mining industry’, Resources Policy, 46, pp. 64-75.
Tsay, A. A. (2014) ‘Designing and controlling the outsourced supply chain’, Foundations and Trends® in Technology, Information and Operations Management, 7(1–2), pp. 1-160.
Tukker, A., and Tischner, U. (Eds.). (2017) New business for old Europe: product-service development, competitiveness, and sustainability. UK: Routledge.
Willcocks, L., and Cullen, S. (2013) Intelligent IT outsourcing. UK: Routledge.
Essay Writing Service Features
Our Experience
No matter how complex your assignment is, we can find the right professional for your specific task. Contact Essay is an essay writing company that hires only the smartest minds to help you with your projects. Our expertise allows us to provide students with high-quality academic writing, editing & proofreading services.
Free Features
Free revision policy
$10Free bibliography & reference
$8Free title page
$8Free formatting
$8How Our Essay Writing Service Works
First, you will need to complete an order form. It's not difficult but, in case there is anything you find not to be clear, you may always call us so that we can guide you through it. On the order form, you will need to include some basic information concerning your order: subject, topic, number of pages, etc. We also encourage our clients to upload any relevant information or sources that will help.
Complete the order form
Once we have all the information and instructions that we need, we select the most suitable writer for your assignment. While everything seems to be clear, the writer, who has complete knowledge of the subject, may need clarification from you. It is at that point that you would receive a call or email from us.
Writer’s assignment
As soon as the writer has finished, it will be delivered both to the website and to your email address so that you will not miss it. If your deadline is close at hand, we will place a call to you to make sure that you receive the paper on time.
Completing the order and download