The research report is based on “Impact of outsourcing web development projects on business performance”. The business functions are growing increasingly complex by means of globalization, competition as well as technology at rapid pace. Husted and de Sousa-Filho (2017) noted that handling of aspects of the business operations is difficult for organization to view the suppliers as the cooperative partners. Bhardwaj and Rana (2015) indicated that outsourcing is shifted function either in whole from main organization towards the third party. Outsourcing is contractual relationship among external vendor as well as enterprise in which the vendors are assumed responsibility for more of the enterprise business functions. Outsourcing of business operations are fallen under three categories such as increase in revenue, improvement capabilities and reduction of cost.
Research aim and objectives
The aim of this report is to analyze the impact of outsourcing web development on the business performance. Following are the objectives such as:
What is the impact of outsourcing web development projects on business performance?
The purpose of this study is to understand specific measures on the dimensions of organizational performance as well as interrelationships to understand relationships among various organizational actions. The organizational performance is encompassed of three areas such as financial, shareholder return performance as well as product market.
The researcher has being completed a partition of the research topics such that the topic is emphasized in comprehensive manner.
Introduction: The particulars of selected research topic are labelled so that the reader can comprehend subject of this research topic. In this particular chapter, concept of outsourcing web development projects is described. Further the investigation aim as well as objectives are specified which helps in improved understanding of the selected research topic.
Literature review: In this section, models as well as ideas helps researcher to understand selected research topic and areas of study. With help of the literature sources, the researcher tried to evaluate the concepts of outsourcing in standardized manner. The critical perspective of this study helps to observe the pros as well as cons into particular topic.
Research methodology: The research methods help in gaining data collection concerned on the research topic is also mentioned. The research methodology helps to guide path which can principal to improved study of selected topic besides aid to gather detailed concepts related to this research study. Choices of the researcher techniques are being monitored by application of appropriate justifications so that chosen methods are appropriate.
Results and analysis: Based on collecting of data as well as information, the researcher is opted to analyze sources such that proper results are generated in apprehension to the selected research topic. Analyzing of impact of outsourcing web development projects on business performance are analyzed in this particular chapter which helps the researcher to better understand of topic. This chapter helps to understand of techniques as well as methods based on participant’s responses.
Conclusion and recommendations: This chapter provides detailed overview of the selected research topic which comprise of results of the research subject. Based on the research objectives, the scholar tried to regulate the accomplishment level of this topic.
The study is explored to involve into web application development into the outsourcing projects and find out the potential challenges. The literature study is included of overview of IT sourcing, history as well as advantages, disadvantages. It is also covered of issues related to outsourcing web development projects. Chatterjee (2017) suggested that the performance of organization is comprised of actual output and results of organization as measured to the intended outputs. Outsourcing is an effective tool into web development projects as it helps to improve of time control as it reduces complexity into operations by transfer of the business activities to third party organization. The organizational performance is encompassed of three areas of outcomes of firm such as financial performance, product market performance in addition to shareholder return. The study is focused on impacts of outsourcing on the organizational performance as well as challenges into implementation of outsourcing (Golini, Kalchschmidt and Landoni 2015). This particular chapter is provided of research gaps identified furthermore comprehensive conceptual framework.
Outsourcing from the outside vendors are helping to produce of goods as well as services produced in-house that continues to rise. Carrillo, Druehl and Hsuan (2015) stated that businesses are outsourced for various reasons such as they are required to reduce cost to become competitive in IT marketplace. The business can also improve quality in addition to speed of software requirements and development in IT projects. Hair Jr et al. (2015) concluded that outsourcing begins to offer of greater value than before. It allows the business firms to concentrate on resources on core businesses. Most outsourced business functions are included of information technology as well as human resources (Gurung and Prater 2017). The justification for outsourcing is economic. The business organizations determined that they can able to prepare business inexpensively by employed with the outsiders than to rely on interior workforces. Outsourcing started with the manufacturing sector besides it is constant into IT and service sector as consequence to underlying position to software goods as well as facilities (Handley and Angst 2015). It becomes importance into IT sector as it has ability to reduce cost, add of business values and impact on the financial performance. Earlier studies are showed that outsourcing is increasing of trends. There are some of the reasons due to which the companies are decided to outsource such as:
Cutting of capital costs: At the time of setting of office companies, there is required to invest in equipments such as servers and software. Outsourcing is helped to reduce initial cost as well as have information system (Gurung and Prater 2017).
Continuous operation: Finishing of the projects on time is considered as competitive advantage for IT companies. Having offshore vendors with significant time differences for the IT companies mean there is continuous operations (Liu and Yuliani 2016). There is a huge benefits from time differences and follow the 24*7 services.
Cheap labor costs: There is time required for the company to recruit IT personnel as well as provide of training. It is estimated that IT professionals those are able to save around 40% of expenses into operations in case of company which is based in US (Handley and Angst 2015). Due to outsourcing of web development projects, the cost savings is ranged from 15-40%.
Reduction of completion time of project: Demands of IT industry is changing. It is required for the companies to become flexible and quick to adapt of changes. When a company is chosen to outsource then it is able to tap the workers as well as professionals those have required know how of changing technology, providing the companies advantages over the training of personnel and cut down the completion time of project (Hodge 2018).
Most of the companies are discovered that the cost savings become less than the vendors which are promised. The companies are found that their savings are dropped after two years. Nicholson, Babin and Briggs (2017) stated that when propriety technology becomes an issue, then there is a big problems of outsourcing which caused of security concerns. The companies are protective to the customer’s data as well as relationships that they think about some of the functions such as customer services towards outside sources. Carrillo, Druehl and Hsuan (2015) analyzed that outsourcing is not delivered properly all the time. The managers are prepared to outsource and the company thought that outsourcing is not able to meet with their expectations. The cost savings are not satisfied to the customers and the result is that outsourcing becomes a problem and have potential to solve it (Liu and Wang 2014). In some of the cases, outsourcing reduces ability of company to respond to market, and it slows efforts to bring of new products to market. The suppliers is failed to bring and provided of quality services which affect the reputation of company with the customers. Husted and de Sousa-Filho (2017) argued that on one hand there are benefits of IT outsourcing while it comes with various risks. Following are the outsourcing risks which are analyzed as follows:
Loss of control: As the companies are outsourcing the IT services from third party, therefore various confidential data are handled by the vendor and service provider (Liang et al. 2016). In these cases, the company loses the control as well privacy over the data to analyze of outsourcing services.
Privacy and security: The companies are requested to outsource of IT functions from the foreign partners seem to be vulnerable regards loss of privacy. As there is various information technology which works with data as well as privacy, then there is possibility of leakage of confidential data for the IT companies (Liu and Wang 2014). It is required while making of agreement with the vendors, and then the issues are related to privacy as well as security.
Loss of IT expertise: When the company is decided to outsource of its IT functions from the third party company, then the IT staffs are required in less numbers. The staffs can able to understand how the business is operated with extra cost and companies decided to reduce the operating cost (Palinkas et al. 2015). Expertise IT experts are required to be selected in this case.
Turban et al. (2015) stated that dependence on the web is increased on regular basis. Systems as well as applications are built from the web, quality as well as reliability. In modern day, handling of web development project is complex. It comes from visual design, user interface design and it is required of planning, designing, testing as well as quality checks (Moon et al. 2016). There are some of the issues which are raised due to outsource of web development projects such as:
Strategic issues: The common issues related to outsourcing are resources, costs, tapping of expertise and time factors. It accesses into the company what the expertise are lacked. After determining of objectives related to outsourcing, the company can able to determine specific sets of skills which are required to outsource (Narayanan, Narasimhan and Schoenherr 2015). The company has to choose of right service provider based on their skills as well as relationship determine beforehand. There are specific set of skills which are required to outsource, which determines that the company establishes kind of relationship with the vendor. It is required for the company to determine dependent they will be on the vendor (Karimi and Walter 2016). The company interviews the service provider as well as employees before they come to an agreement. Both location as well as size of provider is playing an important part.
Tactical issues: The Client Company as well as vendor determines responsibilities. They define the team, responsibilities, as well as process to support entire project work. It is advised to act as liaison among the parties to avoid of miscommunications. After determine the responsibilities, it is required for the companies to decide upon the project processes (Saebi and Foss 2015). When working with team into various places into various cultures, there are coordination problems, but it is accepted that the teams at both ends have various development practices.
Handley and Angst (2015) stated that major discussions into strategy are concerned about the causes of organizational performance. Academics from numerous backgrounds are intensive to explain organizational routine in addition identification of sources of inter-firm presentation differences. Golini, Kalchschmidt and Landoni (2015) argued that industry structure is fundamental cause to presentation of firm as well as content that the structural features into the industry result competitive situation of the business units into particular business. The organizations are used of outsourcing for managing their plan of actions to hire a consultant as well as contractor for the business activities. Moon et al. (2016) identified that there are two methods of outsourcing such as incomplete and complete method of outsourcing. The organizations can subcontract part of their commercial activities but it is thinkable to outsource each corporate process into the organization. When the group is outsourcing the activities, there is focus on retaining of core activities and allow the organizations to handle of non-core activities. Outsourcing is involved specialization of the project activities in which outsourcing organization has competitive advantage to handle of organizational activities. Husted and de Sousa-Filho (2017) noticed that outsourcing is involved with specialization of the activities where there is competitive advantage of outsourcing. Gurung and Prater (2017) categorized outsourcing as two methods such as outsourcing activities or hire of manpower from companies and other method is execution of company’s activities.
The companies are required to analyze the disadvantages as well as long term implications of the exchange before going throughout the sourcing model. Liu and Wang (2014) discussed that approaches as well as resources are associated with the means of competitive edge, core competencies which are understandable by the business organizations. The organizations are adopted of specific path for the competence developments. Hair Jr et al. (2015) analyzed that outsourcing is being associated by means of removal as well as transfer of the human in addition to the physical resources. The activities are to be taken for influencing path for the means of competence developments. The strategic issues which are caused by means of the outsourcing decisions are capability attribution, violations of the intellectual properties which are considered by the firms and possible measures are to be taken to prevent from the issues. There are relationship among the assessment of strategic implications for outsourcing business strategies. Chatterjee (2017) argued that when the business firms are not carried out of the assessments, then they are not developed effective as well as proper marketing strategies. The result is that it may cause competitive edge into the market.
Hsiao et al. (2017) stated that there are important roles for the contract to evaluate outsourcing performance which consists of extensive theoretical supports. The organizations those are adopted of outsourcing to make improvement into the business performance are recommended to examine results and its possible effects to incomplete contracts along with importance with regards to create of contracts for gaining objectives at service levels. Turban et al. (2015) discussed that a contract is resulted to reduce probability for the opportunistic characterizes as well as costly negotiations. Apart from all this, there are lack of predetermination for the required facets which are related to exchange that cause increase of potential for the unexpected behaviors that leads to costly. Carmel, Lacity and Doty (2016) argued that outsourcing performance has higher influencing by more of completed contracts. The positive outcomes are being resulted from risks in addition to uncertainty reduction that are from the detailed descriptions of the obligations along with procedures from enhancements into inter-firm resources efficiency due to contractual coordination provision. Outsourcing guarantees for efficiency of business with an expansion of center exercises that prompts enhance execution cycle speed. Park and Lee (2014) stated that outsourcing is a compelling instrument into web advancement extends as it enhances of time control as it decreases intricacy into tasks by exchange of the business exercises to outsider association. Second effect of the outsourcing for the organization is change of business adaptability. Adaptable tasks are indicated to capacity of organization to react to the circumstances like unusual occasions and unforeseen solicitations of the clients. According to Handley and Angst (2015), outsourcing is an expansion level of the generation adaptability for the organization, when the organization is expected of assets. There is an expansion of execution cycle speed and decrease of cost which make of adaptability.
Shenhar et al. (2016) argued that performance of firm is being influenced as well as achieved by development along with enhancements of the relationship among buyer and supplier. Kvedaraviciene and Boguslauskas (2015) founded that relationship management should influence the performance of outsourcing which is based on relational perspectives for the business firms. The theoretical foundation makes an arguments that there is enhancements as well as maintenance for the network which makes a better relationships to gain of cooperative relations with the suppliers to gain of competitive advantage for the business firm. According to Carrillo, Druehl and Hsuan (2015), there is generation of interpersonal rents which are being distinct as super normal profit produced into argument relationship that are being produced by the firm into isolations besides created throughout joint contributions of alliance partners. Cao and Lumineau (2015) stated that information sharing is being increased by reduction of opportunistic behavior due to social capitals. On other hand, He et al. (2014) argued that learning are improved by the collaborative relations. Supply chain of the literature review is included of empirical evidences which support hypothesis for the cooperative relations management practices result into superior exchange of business performance.
Into this literature study, various types of outsourcing are identified. Liu and Wang (2014) mentioned that outsourcing of business activities are classified into three categories such as first category which is required of highly skilled expertise like accounting and financial activities. Second category is comprised of extremely repetitive commercial tasks such as clerical responsibilities, human resources, sales, and marketing. Final category is outsourcing of extremely specific business functions such as information technology, project management, customer support and building. Karimi and Walter (2016) stated that it is considered as largest areas of outsourcing which is involved with right skills set from the professionals which adapt to change needs of company. ICT outsourcing is carried based on constituent of the facilities scope which is subcontracted and duties are devoted to outsource of contract. Palinkas et al. (2015) discussed that ICT outsourcing is related with cutting of costs, initiation of new business projects besides improvement over organizational efficiency. The literature also highlighted the risks related with implementation of ICT outsourcing projects to identify the information security and privacy risks. Most of the organizations are required to adopt of outsourcing to make some sort of improvements into the financial and operational performance that are recommended to scrutinize results. The outsourcing contracts are required to create for gaining objectives at service levels. Turban et al. (2015) discussed that a contract is resulted to reduce probability for the resourceful characterizes as well as expensive negotiations. Narayanan, Narasimhan and Schoenherr (2015) stated that vulnerabilities are referred to absence and weakness of safeguard into asset which makes threat potential and costly, more like to be occurred and like to occur frequently into ICT outsourcing. Palinkas et al. (2015) stated that managing of the risks are one of the critical factors. Saebi and Foss (2015) agreed that it is required to perform risk management through the stages of outsourcing. The first step into risk management program is identification of risks and production of risks which minimize the ITO from delivering on time.
The outsourcing motives are being identified and root of the outsourcing motivates which are argued. The outsourcing motivates are being categorized into financial as well as operational segments. Outsourcing provides a huge impact on the business performance based on some of the following factors such as:
Financial performance: Liu and Yuliani (2016) stated that outsourcing is achieved of positive impacts on financial performance throughout the reduction of cost. Nicholson, Babin and Briggs (2017) argued that outsourcing for reduction of the cost objectives are proved as first priorities regards to the financial motives. The previous research is based on the outsourcing practices which are identified on influenced sectors where there is reduction of cost is occurred like lowering the locational cost, technological cost. The key areas for the reduction of cost are identified as saving for the labor cost, lower the unit cost by supplier tasks at low cost. The organization are tried to achieve of lower unit cost by specialization for the works and equipment’s. It is achieved to get of better financial performance of business firm (Pekkola, Saunila and Rantanen 2016). Outsourcing is reduced of the unit cost and profit that are being improved. The cost reduction approaches help the business firm to determine the in-house cost for making comparison with the cost of suppliers. Reduction of cost is achieved when sum of the cost of suppliers are included of overhead, transactional cost as well as deliver cost that cost of the in-house productions. Second impact of the financial performance is convert of fixed cost into variable cost. Ko (2014) indicated that the companies are consisted of higher investment on the equipment’s, outsourcing is used as a tool for conversion of fixed into variable costs. Fixed to variable cost is provided impact on return on the assets as well as improvement over the net profit. Silva et al. (2015) analyzed that outsourcing is required of machinery activities which help the business to reduce the cost for extra investments on the equipment.
Operational performance: Khan and Khan (2017) discussed that outsourcing has huge constructive effect on the operational presentation of the business firm. The firms are set of operational motives as core functions for their outsourcing. Gangwar, Date and Ramaswamy (2015) argued that financial motives are short term oriented, while the operational motives are benefited for the companies into long run. There is operational impact from the outsourced manufacturing that is being described as increase into performance cycle speed. According to Fawkes (2017), outsourcing ensures for productivity of business with an increase of core activities that leads to improve performance cycle speed. Outsourcing is an effective tool into web development projects as it helps to improve of time control as it reduces complexity into operations by transfer of the business activities to third party organization. Second impact of the outsourcing for the company is improvement of business flexibility. Flexible operations are referred to ability of company to respond to the situations like unusual events and unexpected requests of the customers (Unhelkar 2016). Outsourcing is an increase level of the production flexibility for the company, when the company is required of resources. There is an increase of performance cycle speed and reduction of cost which create of flexibility.
Sala, Landoni and Verganti (2016) discussed that outsourcing of the web development projects are a critical topic. There is a relationship between outsourcing in addition business performance into web development projects based on some of the factors such as organizational productivity, quality and competitive advantage. The purposed of those factors are providing of complete opinion of the financial features of web development projects at time of outsourcing.
Organizational productivity: Jordan (2015) observed that outsourcing arrangements assignment of outsourcing firms’ assets to the vendor which can translate of fixed costs as well as operating expenses to variable charges. Outsourcing helps to reduce fixed cost, human expenses and overhead costs throughout the contract. Therefore, outsourcing improves of organization’s productivity. According to Nicholson, Babin and Briggs (2017), outsourcing does impact on the cost efficiency of organizational firms. Pekkola, Saunila and Rantanen (2016) argued that insufficient evidence are concluded that outsourcing business organization obtains of productivity growth among four quarter period. Various studies seek to explain that there is relationship among the organizational productivity as well as outsourcing. Carmel, Lacity and Doty (2016) found a optimistic suggestion among degree of outsourcing as well as efficiency. There is cost reduction because of productivity in-house service functions as well as assume of outsource actions when outdoor providers are provided of better comparable services. Organizational productivity metrics represented of ratios of both inputs as well as outputs. Output is being dignified throughout the total revenue in addition sales while inputs are throughout number of workers in addition total assets for generate of output.
Quality: The organizational performance is based on better quality of goods and services provided to the customers. Pekkola, Saunila and Rantanen (2016) discussed that quality is degree of appropriateness of relationship for fulfilling requirements of the customers those are associated with relationship. There is positive relationship among quality as well as outsourcing which is focused on meeting with customer’s expectations and needs. Quality is based on how a vendor is delivered of products and services to the client matching their expectations. Liu and Yuliani (2016) argued among all this, finding of right vendor is also required and development of contract are required for the organization to outsource of the initiatives. There is higher concern to control relief due to day-to-day business operations. According to Liu and Wang (2014), it is required to consider elements of outsourcing contract that help to avoid of risks which are raised due to failure of outsourcing. Throughout entire process of outsourcing, dependent on the buyer as well as vendor firms are required to relate with one another. Palinkas et al. (2015) argued that when right vendor is selected from beginning, then there is associated of business benefits with effective outsourcing of relations.
Competitive advantage: There is positive relationship between outsourcing as well as competitive advantage. Operational decisions are taken to make decisions regarding supervision as well as guidance required for control as well as consistency into organizational requirements. Carmel, Lacity and Doty (2016) analyzed that proper actions are mandatory from the exterior supplier. Finally, organizational decisions are taken to link with the marketing strategy. It creates of conflicts as well as losses of morale with organization. Therefore, proper organizational decisions can improve the structure of cost along with profitability. It helps to improve entire operational effectiveness. The outsourcing is being related by means of elimination as well as transmission of the human in adding to the physical resources. The activities are to be occupied for manipulating path for the means of capability developments.
The decision making process is to be generated of proper information for making of business circumstance for external supplier with financial values for the external suppliers. It creates of organizational framework to brief potential suppliers, shows how the parties can able to work together for maximization of business values. It is not a ownership of company of capabilities that can matter but rather have ability to control as well as make of critical abilities. Kvedaraviciene and Boguslauskas (2015) analyzed value chain which can underpin the decisions regarding outsourcing. Saebi and Foss (2015) viewed that group should be focused on areas where it can add worth to gain of brand reputation, position and innovation. The result is that outsourcing is growing in various business areas. Narayanan, Narasimhan and Schoenherr (2015) introduced the variables which are helping to make of proper outsourcing decision such as credibility, capability as well as cost and mainly those decisions are taken from the external agencies. Contract conditions are difficult for the organization to outsource since it is required of sourcing from the external parties which is not allowed. Gangwar, Date and Ramaswamy (2015) discussed that initial evaluation are allowed for detailed evaluation to outsource of the decisions which are to be made. Saebi and Foss (2015) called to use of outsourcing opportunity matrix which helps the business firm to know whether to outsource considered by some of variables like cost per transaction as well as ability of firm to perform of business functions. When the business firm is completed with all possible analysis, then at last it is found to satisfy with conclusions to make final decisions of outsourcing.
Outsourcing of the web development projects are becoming popular among the market trend to improve of the business performance. Hsiao et al. (2017) considered that advantages of outsourcing is included of savings of cost, effective processes as well as accurate business reporting. Apart from all this, outsourcing is also gained of competitive advantage by allowing of the firm to be focused on core competencies. Throughout entire process of outsourcing, dependent on the buyer as well as vendor firms are required to relate with one another. Small businesses are mainly looking for outsourcing of the financial and accounting functions to improve the business performance (Silva et al. 2015). Following are the factors which are considered to have affect the business performance due to outsourcing of web development projects such as:
Pricing: When entering into contract with the service provider, it is required to make sure that the price of the services are to be paid. The price of outsourcing is not be to so high that there is savings of cost, improvement into the business processes and return on investments that seem to be justified with the price. Handley and Angst (2015) stated that the price should not be too low as the service providers are not provide best when the pay is lower. There are two types of pricing which are used such as full time employee pricing model as well as transactional based pricing model. Full time employee model is where the service providers are paid based on time and the materials are invested by the service providers. Based on the resource level, the prices are to be fixed. According to Pekkola, Saunila and Rantanen (2016), transaction pricing model is such a pricing method which is based on the total number of transactions which are performed from side of service providers. Sala, Landoni and Verganti (2016) concluded that when pricing is right, then it is expected to capitalize of return on investments.
Method: The way to outsource plays a key role in ensure of business success. It is required to choose of outsourcing method based on the organizational structure as well as business requirements. When there is outsourcing of financial and accounting functions, then it is required to outsource of some of key areas such as accounts receivables as well as procurement processes. Nicholson, Babin and Briggs (2017) asked that when there is savings of cost and increasing into core competencies, then why there is required of outsourcing. When there is selection of right method, then there is higher cost savings and there is proper streamline of the processes.
Location: Nearshoring is the best solution towards mitigate of the outsourcing risks but there is missing of cost advantages. Fawkes (2017) stated that it is required to choose of right service provider from right location. Labor pools are required to be available at reasonable costs. The factors based on which the location is selected such as logistics and transportations, training levels, cost for training, inventory costs and cost for set up. Therefore, choosing of right location helps to achieve of best cost savings as well as quicker processes.
Customization: Outsourcing solutions are required to customize to meet with the business requirements, rules as well as regulations of business organization. Gangwar, Date and Ramaswamy (2015) analyzed that customization is required to build into the outsourcing strategies and plan the deals to become succeed. Liu and Wang (2014) argued that the service providers ensure that technology, personnel as well as plans are relevant to the firm. Flexibility is required to build into outsourcing plan such that there is rapid changes into the business performance.
Security: Liu and Yuliani (2016) concluded that security is most important factor which is required to be considered. The service providers should have right security at place when there is outsourcing of sensitive information so that no outsiders can able to access it. Data manipulation as well as data leakage are at big risk at case of outsourcing of web development projects. It is mitigated by making sure that the service providers are conducted of regular audits of the security system and ensuring of firewall that should be remain updated. Carmel, Lacity and Doty (2016) analyzed that data centers are required to be secured against the data hacks. It is also ensured that security features are to be explained as well as detailed into agreements with the service providers.
Returns: The business firms are outsourced to save of the cost. Narayanan, Narasimhan and Schoenherr (2015) stated that savings of cost is not considered as primary goal to outsource as it is seen to be certain outcome of outsourcings. Saebi and Foss (2015) discussed that cost benefit analysis is done on daily basis so that feedback is shared with the service providers. Efforts are to be improved as well as processes are smother, less consume of times and it is also effective. Factors which are considered in this returns are improvement over the operating costs, enhancement in time to delivery as well as progress to meet with compliances issues which can able to measure returns from means of outsourcing. When there is measurement of retunes, then there is implementation of business processes which become better over time.
From the above discussions, following are the hypothesis which are proposed for this particular research study:
Hypothesis 1: There is significant relationship between business performance and opinion about the features of outsourcing.
Hypothesis 2: There is significant relationship between business performance and importance of strategic evaluation.
Hypothesis 3: There is significant relationship between business performance and views on importance of relational commitments.
This particular chapter is addressing collection of data as well as procedures which are used for conducting the investigation and addressing the research questions in addition to triangulate collected data from the literature review. There are various methods of research approaches as well as concepts which are used to make sure that correct methods are used to understand selected research topic. The research related theories as well as concepts are adopted into the methodology which help to better and deeper understand of selected topic. The researcher also tried to apply of detailed process which help to better investigation of the impact of outsourcing on business performance.
In the research methodology, the research philosophy assistances to determine proper way to analyze selected research topic. Mackey and Gass (2015) discussed that it helps to explain of assumptions which are taken to conduct a study. There are two types of research philosophy such as positivism and interpretivism. Positivism is subject to help into application of logic and analyze of hidden facts related to selected research topic. It is tried to reject of metaphysics such that detailed observations as well as knowledge is being enabled. Interpretivism is supported concept related to complex structure which is involved into social world of the business related activities.
In this particular study, in order to evaluate significant factors impact the outsourcing into the business performance with different project into the IT firm, the researcher is selected of positivism as the research philosophy. Positivism allowed the researcher to reveal of hidden data which are related to the outsourcing process into Singapore’s IT industries. Due to limited time, other research philosophies are not used and those are eliminated from considerations. Selected method is restricted of activities of study for the data interpretation.
In this particular section, different existing research approaches are being used to select suitable approach for this research study. There are two types of research approach such as deductive as well as inductive approach. Deductive approach is worked from wide topic to particular topic which aimed to test existing theory and it is required to provide mentioned hypothesis for proving the research assumptions. This particular approach enabled the researcher to resolve issues by collection of different types of information as well as data to confirm along with reject the hypothesis. It started to think about existing theory about selected topic then there is down of specific hypothesis to test. It is narrowed down where the observations are to be collected for addressing hypothesis which end to test hypothesis (Lewis 2015). Deductive approach is suited into scientific research that is required of proper hypothesis testing as well as explanations and its descriptions. Glesne (2015) discussed that disadvantage of this approach is inflexibility for considering holistic alternative which influences into the research problem arrived to narrow down the conclusion.
Inductive approach is considered to be more flexible as well as open ended in nature as there is no such existing theory for collecting of data as well as information. Taylor, Bogdan and DeVault (2015) stated that inductive approach is provided the researcher with an argument required to observe the data as well as fact to test the hypothesis as well as define the theory from the research problems. This particular approach is worked from the observations to broader generalization where there is formulation of hypothesis then it is explored to arrive of conclusion on selected research topic. This particular approach is emphasized to attain qualitative understanding of nature related to research problem. It is allowed the theory to develop as well as provide considerations to opinions and concerns related to people in this particular study.
According to Flick (2015), research design is helped to develop required framework required to collect as well as analyze of data. Use of proper research design helps to reveal of pattern as well as data sources required to complete the study. The data collection process besides analysis methods are require to conduct the study in detailed manner. There is also existed of three types of research design such as Explanatory, Exploratory and Descriptive. Exploratory design is allowed the researcher to define needed data to conduct the study. Explanatory design is aimed to define of incidents those are occurred respect to time as well as impact. Descriptive design is provided of description of events those are occurred while accounted for the research timeline along with impact of selected topic.
As this particular research study is cross sectional, therefore explanatory research design is best suited with selected research topic. Descriptive design is selected as it is based on evaluate of key factors impact outsourcing in the IT firm and its business performance. This research design is suited as the researcher is not able to describe of processes followed into the outsourcing process into the IT firms.
While conducting a study in selected research, the data is being accounted as significant information required for this study. Useful information as well as data are provided of insight to the undertaken topic in comprehensive manner. According to Ledford and Gast (2018), application of proper as well as detailed information are relevant to this particular study which assisted to deliver of accuracy of data analysis along with maintaining of standard for this study.
Brinkmann (2014) stated that identification of proper data collection methods are crucial to conduct the data analysis along with interpretation of those data. Excavation of proper data sources into the study provides of proper as well as sensitive information which is relevant to the study. Based on the data collection methods, there are two types of data methods such as primary besides secondary data collection methods. Smith (2015) defined primary data method as collection of first time throughout the study. The primary data are raw data which helps to cater as per research needs. The raw data provides of detailed insight information related to selected research topic. The raw data are used as the research method which is required of proper validation of data sources in terms of validity as well as reliability. Secondary data ate those which are collected as well as gathered by other group of people.
In this particular study, primary data collection method is used which helps to identify of impact of outsourcing in web development projects for business performance. The data are collected through use of survey and online questionnaire. A set of questions are prepared based on selected research topic. There is acceptance of impact of outsourcing at Singapore’s IT industry. In order to collect of information, the researcher evaluated of feedback from the respondents and the questions are considered to extract of sensitive information based on outsourcing process in web development projects.
In this particular study, the researcher is used of quantitative as well as qualitative data analysis to arrive at the research findings. Silverman (2016) recognized that there is limitations of one research method that is compensated by strength of other methods. Panneerselvam (2014) pointed out that there is combination of both qualitative as well as quantitative method which is good for mixed design to get reliable research findings. The researcher is opted to get qualitative data from the employees of Singapore’s different IT industry through use of survey questionnaire method. This data analysis method is used to triangulate primary research for adding of evidences to the literature study. According to Mackey and Gass (2015), there is combination of deductive as well as inductive method of the research. Quantitative data are being obtained from the questionnaire in form of graphs as well as charts.
In this particular study, quantitative data analysis is being used where the researcher has taken employees from various IT industry and takes their responses through method of online survey and questionnaire. The result of this data analysis method is to evaluate engagement of the employees to provide their feedback on outsourcing of web development projects. This particular method allowed the researcher to obtain of numerical data that is interpreted to display into graphical format which display the trends as well as triangulations.
In this research study, the population is number of people those are directly as well as indirectly involved into the research processes. The employees of various IT industry of Singapore those are used of outsourcing for their web development projects are considered as population of this study. Taylor, Bogdan and DeVault (2015) discussed that sample is considered to study impact of outsourcing into the web development projects on business performance. The employees of IT industry are taken where the survey is being performed reflected impression of them based on 1 = Strongly Disagree, 2= Disagree, 3=Neutral, 4=Agree and 5=Strongly Agree. In order to conduct quantitative research techniques, 50 employees are considered and interacted with help of the online questionnaire forms. Therefore, the sample size of the study is 50.
Conducting of the ethical research is par with human rights acted that is specific to the right to esteem for the correspondence. The respondents those are provided their responses based on provided survey questionnaire are provided options to reveal and right to answer and not to answer in whole as well as part the questions. Right not to answer to the survey is based on their opinions as well as thoughts. As the research is conducted with collecting of organizational data and information, therefore it is dealt with strict about confidentiality of those data and it is not published publicly. The researcher has not put any external influence on pressurizing the respondents to take part into the survey process of research topic. The respondents with intellect of voluntary participation are stimulated to contribute in the survey process. Based on those ethical considerations, the researcher is tried to preserve of research ethics.
The research study helps to gain of results related to concerned research topic is allowed to encounter of avoidable as well as non-avoidable within nature. Impact of research limitations lessened with application of different research methods as well as techniques. There are various research limitations which are identified as follows:
Time constraint: There are a definite time is allocated for conducting the research study which provide impact on the outsourcing followed into the IT firm. Due to limitation of time, the researcher is conducted of cross sectional study which limited the author to conduct of detailed analysis as well as evaluate of different hidden details related to topic. Due to limitation of time, the researcher has conducted the primary data collection on one IT industry.
Reliability: Raw data are to be collected from the employees in form of survey which are required to check for validity as well as reliability. The respondents are based on the organization while providing of their feedback that impacts the results of this study. In order to collect of data for analysis, the researcher is used of primary data collection.
Lack of budget: This study is provided with limited budget which restricted the scope as well as nature of this particular study. With a budget, the researcher has consisted of limited time to study the nature of the organization and identify the factors impact the outsourcing on business performance. The researcher has restricted to SPSS analysis due to lack of budget.
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Main activities/ stages |
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Selection of the Research Topic |
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Develop the layout of the research |
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Conduct the detailed literature review |
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Form the appropriate research plan |
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Collect the primary data and information |
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Analysis and Interpretation of Data Collection |
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Develop the data findings |
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Conclude the Study |
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Development of Rough Draft |
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In this particular chapter, the researcher is strained to demonstration of data analysis on the impact of outsourcing web development projects on business performance. With help of the quantitative data analysis, the data analysis aids as part of the research process helps to upturn of quality of information besides also make of proper investigation of the selected research topic. The researcher is opted to get qualitative data from the employees of Singapore’s different IT industry through use of survey questionnaire method. This data analysis method is used to triangulate primary research for adding of evidences to the literature study. The data analysis is involved with limitations, data manipulation and complexities. There is also process of crosscheck of data analysis in selected research topic. Based on this chapter, the respondents of the IT industry provided their feedback and based on it’s the researcher has gained of information related to the topic and also analyze of findings and validity into process to collect of data.
In this current section, the employees of Singapore’s IT industry is measured for performing the quantitative analysis such that the investigator can able to comprehend the impact of outsourcing in the organizational performance. The total number of respondents those are taken for this study are 50 as others are not interested to fill the online survey form, therefore they are discarded from being sample of this research study.
Conclusion
It is concluded that the price of outsourcing is not be to so high that there is savings of cost, improvement into the business processes and return on investments that seem to be justified with the price. The factors based on which the location is selected such as logistics and transportations, training levels, cost for training, inventory costs as well as the price related to set up. Outsourcing is considered as vital part for taking of decisions related to business. There are various factors which lead to play a key role into taking of decisions like quality, cost as well as other factors.
Objective 1: To determine the extent of outsourcing into business performance in web development projects
It is concluded that outsourcing helps to make improvement into the business performance by cutting of business cost, achieve of competitive advantage and providing of financial advantage into the organization. Outsourcing helps to reduce fixed cost, human expenses and overhead costs throughout the contract.
Objective 2: To determine relationship between outsourcing and business performance into web development projects
There is a better relationships to gain of cooperative relations with the suppliers to gain of competitive advantage for the business firm. Outsourcing is reduced of the unit cost and profit that are being improved. The cost reduction approaches help the business firm to determine the in-house cost for making comparison with the cost of suppliers.
Objective 3: To determine the factors affect implementation of outsourcing
The company is dependent on outsourcing which help the business to become productive as well as successful. The outsourcing companies are not a business without outsource of their products and services to other countries. Labor cost is considered as major factor which affect the implementation of outsourcing. Throughout outsourcing, the companies have capability to advance of inexpensive strategies which can influence of their economic positions into competitive worldwide.
It is recommended that each of the cloud outsourcing contract should include undertakings from the cloud service provider to provide of better services to the client company. It should be required to take decisions of outsourcing based on context of the business strategies. By alignment with the business strategy, there are proper controls into the contract. The company is required to intent to grow through aggressive acquisition strategies to ensure of pricing which takes the planner growth into accountability. Management commitment is critical to success of the outsourcing transactions. By alignment with the outsourcing decisions towards the strategic plan, the team becomes committed to project work.
With the outsourcing industry emerged from the worldwide recession, there are movements which give indication to forthcoming such as the researcher is predicted that the industry should endure to the short term cost compressions and there should be heaviness on the service providers to become flexible into the valuing contracts. The company is focused on increasing of operational efficiency, reduction of back office cost in addition better quality control in the future.
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