Benefits of Using the Outsourcing Function-Samples for Students

Question: Write a Business research Proposal outlining the details of the proposed research project that addresses the gaps Identified in the Literature. Answer: Introduction Outsourcing refers to the process of handing over the internal work of a company to a third party. It is necessary in the present days of world for the companies, to outsource the functions as it helps to provide the organizations with the best quality of work in the effective manner (Al-Mutairi and Al-Hammad 2015). The companies may concentrate on the important function as well as the exclusive methods by the outsourcing work. This is important for a company to focus on the functions of the outsourcing method. The investment of a company in hiring professionals to that of the outsource work. It helps to reduce the works or functions that are done by the third party company (Tayauova 2012). This can occur on fewer prices. The discussion focuses on the advantages and disadvantages of the outsourcing in the companies or firms. This will help to get a clear idea of the situations that a company can face in terms of the outsourcing the works with third party. This will help to show the actual advantages and disadvantages of the outsourcing function. Project Objective The objectives of the project are discussed below: To understand the concept of the outsourcing function in a firm To investigate the benefits of using the outsourcing function in a firm To investigate the disadvantages of using the outsourcing function in a firm Project Scope Outsourcing is the prediction to take help from the third party that will help to conduct the function of the organization. However, this is not important. Outsourcing helps to make contract with companies that are specialized in the IT field. The approach will help the non IT companies for conducting the IT works outside the organization in the effective and cheaper way. Mohr, Sengupta and Slater (2011) stated outsourcing as the process, which can focus on the specific kind of the functions. This helps to develop the function of the companies that is specialized in this field. If the company deserves outsource of its IT function then the company needs to take the help of third party. Liou and Chuang (2010) mentioned that the outsourcing is a crucial for a company as it can increase the cost of the training for the company. The effectiveness of the outsourcing is high as the outsourcing firm has potential for hiring more efficient employees than another firm. As the hiring cost becam e high, the overall cost of the company becomes high. Kurdia et al. (2011) argued that outsourcing is not all about the delegating function of the company but also it affect the decision making process of the company. Literature Review Advantages of Outsourcing: According to Bustinza, Molina and gutierrez?gutierrez (2010), the manufacturing firms need the outsourcing the most as some of the functions is crucial to perform. The function can focus on the earned revenue of the company. Outsourcing has various advantages and disadvantages. The first advantage of the outsourcing is that the reduction of the expenses of the company. Mani, Barua and Whinston (2010) stated that firms need the association of the expense with the process of working in the organization. It is necessary for an organization to focus on the activity of the employees in the organization. The outsourcing may be less expensive than the training session in the organization as the training session needs various factors to be present in the organization. An important question can arise in such context that how the outsourcing can save money. The reason of this is that the firm may need to send the money for one time whereas the hiring of employment can be for long time. Before hiring, the organization has to provide training to the employee that is too costly that the outsourcing. In such way, the outsourcing is beneficial for the organization. The outsourcing cuts down the cost of the organization that is much less than arranging training for the new trainees (Bustinza, Molina and gutierrez?gutierrez 2010). Therefore, it is beneficial for the company is to spend money for the third party. Therefore, the company can spend money in other necessary work of the company that will help to develop the company. The manufacturing companies need to outsource the HR and IT as it can help them to save money and spend it for the manufacturing purpose. Thus, the core processes of the company can be performed appropriately. The advantages of the outsourcing are flexible as well it helps the companies to develop in a well manner. Disadvantages of Outsourcing: The main disadvantage of the outsourcing is that it does not improve the management system of the company. Due to outsourcing, the company can loss the control on the management system of the company. It is necessary for the organization to look into their management system for the development of the organization that the outsourcing system prevents to look into. The reason behind this is that the third party will handle all the essential activities of the company. They will manage the workload and in such cases, the company may face serious issues. This can hamper the production of the company and as a result the reputation of the company can hamper. The important data of the company can be lost due to the loss of control of the company. This type of practices is unethical for the organization that can put the organization in big trouble. Therefore, before applying the outsourcing, the company needs to be careful about the involvement of the third party activities. The involvement of the third party can down the company reputation in the international market. Hence, it is necessary to down stair the involvement of the third party. Otherwise, the organizational structure can be hampered. The downsize can lead to the firing of the employees (Al-Mutairi and Al-Hammad 2015). This can have negative impact on the organization as well as on the employees. This practice can develop the threat on the career of the employees. Therefore, the organizations need to be careful before applying the outsourcing and involving the third parties in the organization. The advantage and disadvantages of the outsourcing are discussed to provide an idea about the benefits and harmful effects of it on the organizations. Research Questions/ Hypothesis The research questions are stated as below: What are the concepts of the outsourcing function in a firm? What are the benefits of using the outsourcing function in a firm? What are the disadvantages of using the outsourcing function in a firm? The independent variable in this research study is the firms and the companies whereas the dependent variable is the advantages and disadvantages of outsourcing function. H0: The outsourcing function has no various advantages and disadvantages on the firms and companies. H1: The outsourcing function has various advantages and disadvantages on the firms and companies. Research Design and Methodology Research Design: In view of Bergh and Ketchen (2011), research design helps in utilizing the researches so that it can differ from other researches and can be acceptable in nature. Three different kinds of research designs are the exploratory, descriptive, and explanatory research designs. The exploratory research is based on the explanation of the theoretical framework (Bernard 2011). On the other hand, explanatory research is identification of the relationships in between the variables and establishes the underlying facts. This can affect the event of the study. The research design helps to guide the researcher in testing the hypothesis. This will allow the researcher to draw inference from the results. The descriptive design allows researcher to show and explain the phenomenon, which occurs in nature. For the particular research study, the researcher will choose the descriptive design. This will help the researcher to gain knowledge about the topic. Methods of Data Collection: The two types of data collection methods are the qualitative and the quantitative data collection. The quantitative data collection helps to gain the result with the help of the likert scale (Creswell 2011). For the research study, the researcher will select 30 employees of different organization, which are manufacturing companies. The pragmatic data can be collected from probability sample so that the quantitative data analysis can be done. The qualitative data collection was done with help of the interview questionnaire. For this purpose, the researcher will select 5 managers to know the advantages as well as disadvantages to use he outsourcing in the organization. Sampling: The researcher can select the probability and non- probability method of sampling. The researcher may select both the sampling technique. Simple Random Sampling Technique: The probability sampling of 30 employees of different companies was selected with help of the simple random sampling technique. The sampling technique can be applicable to serve the reason of the quantitative data collection (Crowther and Lancaster 2012). This probability sample can provide the incidence of responses within the identified probability range. This can help in the interpretation and the generalisation of data. The responses that were collected from participants will be utilised to analyze of quantitative data. Convenience sampling technique: The non- probability sampling technique can be utilized to make the selection of 5 managers of different companies. The convenience sampling can be utilised in the research for getting the views of those managers. The transcriptions of the interview will help to analyse with the help of the qualitative method (Denzin and Lincoln 2011). The issues of the time as well as busy schedules of the managers will guide the researcher for utilising the non- probability sampling technique. The technique will help researcher to get the qualitative data and check validate the responses, which got from the probability sample of 30 employees. Research Limitation The researcher will face two major issues while conducting the research. The researcher has limited budget and limited time to conduct the research. The limited time will prevent the researcher to gain more knowledge about research topic (Crouch and Pearce 2012). Due to the limited budget, the researcher will not be able to select a large number of sample sizes. Hence, the future researchers may have various scopes to explore their research. They will get help from this research study. The issues of the limited budget and time prevented the researcher to access some of the literatures as those literatures were not available free. Time schedule (Gantt chart) Main activities 1st week 2nd week 3rd week 4th+5th week 6th week 7th week Selection of the topic Composition of the literature review Research methodology Collection of primary data Analysis and interpretation of data Findings Conclusion and Recommendation Final submission 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), pp. 8-27 Bergh, D. and Ketchen, D. J. 2011. Research methodology in Strategy and Management, 1st ed. Bingley: Emerald Group Publishing Ltd Bernard, H. R. 2011. Research Methods in Anthropology: Qualitative and Quantitative Approaches. 5th ed. Plymouth: Alta Mira Press. Bustinza, O.F., Molina, L.M. and gutierrez?gutierrez, L.J., 2010. Outsourcing as seen from the perspective of knowledge management.Journal of Supply Chain Management,46(3), pp.23-39. Creswell, J. W. 2011. Research design: Qualitative, quantitative, and mixed methods Crouch, C. and Pearce, J. 2012. Doing Research in Design - Page 68, 2nd ed. London: Bloomsbury Publishing Plc. Crowther, D. and Lancaster, G. 2012. Research Methods, 2nd ed. London: Routledge. Denzin, N. K. and Lincoln, Y. S. 2011. The SAGE Handbook of Qualitative Research. Page 271, 4th ed. London: Sage Publications. Kurdia, M.K., Abdul-Tharim, A.H., Jaffar, N., Azli, M.S., Shuib, M.N. and Ab-Wahid, A.M., 2011. Outsourcing in facilities management-A Literature Review.Procedia Engineering,20, pp.445-457. Liou, J.J. and Chuang, Y.T., 2010. Developing a hybrid multi-criteria model for selection of outsourcing providers.Expert Systems with Applications,37(5), pp.3755-3761. Mani, D., Barua, A. and Whinston, A., 2010. An empirical analysis of the impact of information capabilities design on business process outsourcing performance.Mis Quarterly, pp.39-62. Mohr, J.J., Sengupta, S. and Slater, S.F., 2011. Mapping the outsourcing landscape.Journal of Business Strategy,32(1), pp.42-50. Tayauova, G., 2012. Advantages and disadvantages of outsourcing: analysis of outsourcing practices of Kazakhstan banks.Procedia-Social and Behavioral Sciences,41, pp.188-195.