Positive Impact of Outsourcing on Business- Samples for Students

Question: Discuss about the Advantages and Disadvantages of Outsourcing Business Functions. Answer: Introduction The proposed research is based on the advantages and disadvantages of outsourcing business functions. In managerial context, the practices of outsourcing have varied a lot over the past two decades, which is spanning from the externalization of support activities to some fundamental process. However, in the recent time, organizations tend to manage a portfolio of outsourced activities that could include relatively low-skill activities and knowledge-intensive service (Liu, and Wang 2014). It has been observed in the recent time that flourishing of Information Technology outsourcing, the increasingly widespread of finance and accounting information, medical outsourcing, and the emergence of knowledge outsourcing remains as the promising niche within the broader concept of business process outsourcing. Even though, outsourcing practices have been embraced with the usual favor and the broadening of their span has certainly clashed with some pressure internal and external stakeholders. However, it is also found that described enhanced complexity of suppler-customer relations in outsourcing calls for an intensive reflection on its definition as well as the actual span of action. The proposed study focuses on how outsourcing business practices influence the operation of the organizations that rely on such practices. The proposed research also investigates the challenges that organizations face while incorporating such practices in the business. The proposed research is conducted based on some related theme associated with business outsourcing such as offshore outsourcing, the drawbacks associated with the usual practice of outsourcing. Some particular objectives have been formed based on which the research is supposed to be conducted. The research includes a set of techniques that will be used at the time of conducting the analysis; thereby, an outline of the research methods has been provided in the following. Background of the Research Outsourcing is a unique experience and individual organizations find its impact to come in a different shape and sizes. It is also observed that outsourcing is one of the significant tools that organizations use to meet its growth, business and operational strategies. Outsourcing has been as the field of investigation in many fields, spanning from management of information system to the international business (Al-Mutairi and Al-Hammad 2015). In spite of the hierarchical of its definition, the scholars agree that the decision to outsource raises the matter of reliance of the organizations on external sources input, services, process and other-adding activities. The authors focus on the balancing the span of activities that organizations carry out internally against those are acquired from outside. In this context, iek and Ozer (2011) commented that as defining the outsourcing as the decision to outsource activities by recurring to medium or long-term agreements also including the tran sfer of activities and personnel to third parties. Hence, this particular is also relevant with the further development of the nature of outsourcing that has been recorded during the past decade such as offshoring global sourcing. Many studies have been conducted on outsourcing and the studies claim that outsourcing is the best way to minimize the cost and enhance the performance. Particularly, Dolgui and Proth, (2013) commented that drastic development in the supply market has also triggered the outsourcing the techniques for product and services across a series of activities such as financial service, automotive, airlines and many others. Furthermore, Kang et al. (2012) also commented that increasing globalization has enabled the organizations to focus more on their outsourcing decision. The tactical organizations have started to incorporate outsourcing as the strategic aspect or weapon to compete in the market. Project Scope The proposed research provides an empirical analysis of the organizations that have incorporated the outsourcing practices in the business. To conduct the research with the developed objectives, various aspects relevant to the aspects of outsourcing such as offshore outsourcing, cost structure, advantages and disadvantages of the incorporated practice, the organizational performance compared with the conventional business industry has been included in the study. The objectives provided below help to lead the research toward the desired direction. The proposed research is structured with a number phases such as the introductory section provides the significance of the research and provides the objectives. The next phase provides theoretical framework and represents a critical analysis of the major explanatory theories related to outsourcing that have been used for dealing outsourcing. Project aim and Objectives The aim of the proposed research is to investigate the advantages and disadvantages associated with outsourcing. The research aims to examine how outsourcing influences the business operation of the organizations. The following are the key objectives of the research: To critically evaluate the impact of outsourcing on business To analyze the advantages and disadvantages of outsourcing in business To evaluate the challenges that organizations face in incorporating the outsourcing practices to the business Hypotheses H0-There is a negative impact of outsourcing practices on business H1- There is a positive impact of outsourcing practices on business Research Questions What is the impact of outsourcing on business? What are the advantages and disadvantages of outsourcing that organization encounter? What are the challenges that organization face in incorporating the outsourcing practices? Methodology In order to incorporate the above-mentioned requirements and conduct the study, the some particular research techniques are supposed to be included into the proposed research. As put forward by Miller et al. (2012), methodology is the framework which is associated with a specific set of pragmatic assumption that will be used to perform the research. Short et al. (2012) also commented that methodology should be the most suitable and appropriate to accomplish the research objectives. The proposed research includes both primary and secondary analysis. The secondary data will be collected from the reliable secondary sources such as peer-reviewed journals, blogs, newsletter, published annual reports and others. On the other side, to collect the primary data, the organization IBM will be considered. By conducting the survey and interview among the employees of IBM, the required type of data will be conducted. The proposed study will include a positivism research philosophy, as this researc h philosophy will help to broaden the scope of observation. In addition, it helps to extract the hidden truth from the facts. Data Collection techniques In order to conduct the proposed research, both primary and secondary data will be collected. To collect the primary data, the quantitative and qualitative data collection techniques will be applied to the research. To collect the quantitative data, survey will be conducted among the employees of IBM. Likewise, to collect qualitative data, the interview will be conducted among the managers of IBM. Both close-ended and open-ended questions will be designed to collect the data. For quantitative data, the close-ended questions will be designed and for qualitative data, the open-ended questions will be designed. Sampling methods- Sampling can be used as the particular to choose members of population to be included in the research. Both probability and non-probability sampling will be used in the proposed study. Probability sampling will be selected because the respondents-employees might not have intensive knowledge regarding the outsourcing business functions. Therefore, they might prefer close-ended question where they can provide a straightforward answer. On the other side, the non-probability sampling will be used as to include descriptive answers in the discussion, it is mandatory to include the criteria of including people who have vast knowledge regarding the context of the research. The probability sampling will include 60 employees of IBM and non-probability sampling will use 5 managers of IBM. Data analysis In order to make the analysis of the data, the data findings will be linked to the outcome of the literature review. In addition, before conducting the analysis, the data will be converted to numeric digits and then they will be presented in the table and graph. To make the analysis, the outcome will be linked to the each theme found in the literature review. The data analysis for quantitative studies involves the critical analysis and the interpretation of figures and number. This analysis helps to find the rationale the behind the emergence of the major findings. In addition to this, comparisons of primary research findings to the findings of the literature review are fundamentally crucial for both type of studies- qualitative and quantitative that will be used in the study. Reliability and Validity The research conducted in the present study is reliable because it is assured that the same responses can be obtained using the instruments that will be used in the present study. The survey and the interview will provide the same result whenever the study is conducted with these two studies. On the other side, the research is valid as the appropriate research techniques will be used in the present study and the sample used in the study is relevant to the research context. The large sample Research limitation The present study is limited to primary analysis only; the secondary analysis will not be included in the study. In addition, the research lacks a comparative study, which only organization has been considered to investigate outsourcing practices of business. A comparative study would provide more intensive and suitable outcome. Conclusion In conclusion, it can be mentioned that the proposed study will help to learn how outsourcing business practices influence the business. It is expected that outcome will emphasize on the positive impact of outsourcing on business now. The practice of outsourcing is rapidly increasing and the organizations are being benefitted by such practices. However, outcome will provide the accurate understanding regarding the context References Al-Mutairi, A.O. and Al-Hammad, A., 2015. Advantages and Disadvantages of Maintenance Outsourcing in Manufacturing Companies: With Special References to Jubail Industrial CityKSA.European Journal of Business and Management,7(20). iek, I. and Ozer, B., 2011. The effect of outsourcing human resource on organizational performance: the role of organizational culture.International journal of business and management studies,3(2), pp.131-144. Dolgui, A. and Proth, J.M., 2013. Outsourcing: definitions and analysis.International Journal of Production Research,51(23-24), pp.6769-6777. Kang, M., Wu, X., Hong, P. and Park, Y., 2012. Aligning organizational control practices with competitive outsourcing performance.Journal of Business Research,65(8), pp.1195-1201. 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. Miller, T., Birch, M., Mauthner, M. and Jessop, J. eds., 2012.Ethics in qualitative research. Sage. Short, M.B., Black, L., Smith, A.H., Wetterneck, C.T. and Wells, D.E., 2012. 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