The Impact Of Outsourcing On Organizational Performance

Justification of the Project

Outsourcing is the systematic practice with the help of which an individual company lies to perform and provide services for another company. The primary purpose of maintaining outsourcing for a company is saving costs. In many cases, it has been observed that a particular business organization does not have the internal efficiency in maintaining effective customer service system due to the lack of sufficient workforce, internal equipments and inefficiency in managing customers and so on. After the emergence of outsourcing and its practice the organizations have increased their level of performance. The business experts tend to deliver the outsourcing project to those companies which are efficient and competent enough in handing customer service system. This particular practice is very much cost effective as well as the business experts do not have to invest labor cost for the purpose of customer service. Therefore, this particular practice ultimately increases the level of organizational performance as opined by numerous scholars.

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2. Justification of the project:

It has been observed that the emergence of outsourcing has rendered a balance between unexpected product development as well as customer service system. A particular business organization has to face innumerable difficulties in maintaining a balance between both organizational production as well as customer services (Marshall et al. 2015). As a result, the business experts tend to focus on outsourcing to balance the entire process of business systematically. However, the impact of outsourcing has become a raising topic as per the current business environment. By conducting this particular research proposal large number of researchers as well as practitioners has come in a conclusion on how much effective the practice of outsourcing is in order to increase the performance level of a business organization.   

3. Research question and justification:

The proposed research questions for this particular study are as follows:

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  • What are the necessary impacts of outsourcing in evaluating the overall performance level of the business organizations?
  • What are the primary factors that highly affect in maintaining outsourcing?
  • What should be the recommendations based on which the factors affecting the practice of outsourcing can be resolved?

Research question justification:

In order to evaluate the impacts of outsourcing in evaluating the overall performance level of the business organizations, numerous eminent scholars have opined several opinions.  As per the view of one group of scholar, the emergence of outsourcing is possessed with numerous negative impacts (Butler and Callahan 2014). On the other hand, some of the scholars have stated that outsourcing has helped numerous business organizations in maintaining their entire flow of business systematic flow of business effectively. Therefore, this particular research question would help to evaluate numerous data regarding the impact of outsourcing in enhancing business performance. On the other hand, among some of the most effective factors, the communication gap, cultural gap, psychological gap are most prominent.

Research Question and Justification

These particular research question would help to analyze some of the most important factors based on which the practice of outsourcing is getting affected highly. On the other hand, the last question that is the recommendations based on which the factors affecting the practice of outsourcing can be resolved is very much significant in resolving the issues of outsourcing (Gunasekaran et al. 2015). Based on the recommendations, the researchers would like to give a proper suggestion in order to come into a conclusion.

4. Methodology:

4.1 Research philosophy:

Research philosophy is the systematic approach with the help of which the entire research work is conducted by maintaining a proper inward skill and competency. Research philosophy is primarily opted in several types including positivism philosophy, realism philosophy and interpretivism philosophy. As per the concept of positivism philosophy, the entire research work and collection of information is dependent on repeated observation (Gorla and Somers2014. Before gathering particular information, an acute observation is highly important to judge the reliability of data. Interpretivism philosophy as well as realism philosophy both is very much time consuming as well as cost effective. Therefore, this particular research proposal would like to choose positivism philosophy for accomplishing the entire research work systematically.

4.2 Research approach and design:

Research approach is the systematic procedure of collecting necessary information based on which the researcher tends to identify whether the entire project is based on theoretical data or hypothetical explanation. Research approach is constituted with two major parts including deductive approach and inductive approach. In this particular research proposal deductive approach will be selected as this particular approach is entire based on case study. In order to collect necessary information, the researcher intends to apply a keen observation by conducting numerous case studies regarding the research variables.

On the other hand, research design is the method of organizing the entire data and information from various sources. Research design is constituted with three major types that include descriptive research design, exploratory research design and explanatory research design. This particular study would focus to use descriptive research design (Liu and Wang 2014). As per this particular research design, data collected by using positivism philosophy and deductive research approach would be described in order to evaluate the research variables along with the research issue. By using this particular information, the researcher has described data from numerous aspects in order to come into a conclusion (Taylor, Bogdan and DeVault 2015). Exploratory research design as well as explanatory research design is not sufficient enough in evaluating data by using various case studies.

Research Philosophy

4.3 Data collection method:

Data collection method is one of the most effective techniques of gathering necessary information from numerous sources. Data collection method is endowed with two major types including primary source of data collection technique and secondary source of data collection technique (Flick 2015). Primary source of data collection technique is based on direct data. The respondents are involved directly for providing necessary information regarding the impact of outsourcing on organizational performance. On the other hand, secondary source of data collection technique is based on books, journals, magazines, newspapers and online websites (Teo and Bhattacherjee 2014).

This particular study would like to choose primary source of data collection technique in order to gather direct feedback from the organizational employees. While collecting data both the qualitative as well as quantitative data collection procedure would be used for collecting necessary information from the respondents. Total 50 employees from a specific organization maintaining outsourcing activities would be involved. At the same time, 5 managers from the organization would be involved for conducting an effective interview session. After collecting a direct feedback from the numerous employees, people would be able to collect direct response from the employees as well as managers.

4.4 Sampling technique:

       Sampling technique is the systematic procedure with the help of which the researcher can collect large number of data from a large number of populations (Vaioleti 2016). Sampling technique is constituted with two major types that is probability sampling technique and non-probability sampling technique. Probability sampling technique is otherwise called random sampling method with the help of which the researcher intends to choose the sample size randomly without having any particular specification (Plugge, Bouwman and Molina-Castillo 2013. On the other hand, non-probability sampling technique enables the researcher in collecting data and information from a specific group of people who are very much related in research issues. This particular study would like to choose non-probability sampling technique with the help of which some of the employees can be involved for knowing the impact of outsourcing on organizational performance.                                              

4.5 Data analysis technique:

In order to analyses the data and information this particular research would like to focus on SPSS analysis, hypothesis testing in order to gather accurate data collected from the respondents. People belonging to different geographical boundaries are involved within a business organization. Therefore, while collecting necessary data and information these particular analytical tools would help to render accuracy within the data.

Research Approach and Design

4.6 Ethical consideration:

In order to conduct a particular research every researcher has to follow particular ethics, values and beliefs. Data collected from different resources would have to be authentic and reliable. The researchers have to maintain data protection act strictly with the help of which the data collector does not reveal any particular data or information without the permission of third party (Wiek and Lang 2016).  The respondents should be given a spontaneous liberty with the help of which the respondents are not forced to provide data and information to the researcher. The response would have to be spontaneous.  

4.7 Research limitation:

This particular research is not devoid of some of its major drawbacks. While conducting the entire research work, the researcher has used positivism research philosophy instead of post positivism philosophy. Positivism research philosophy is very much dependent on mere observation. On the other hand, post positivism philosophy involves a particular researcher in collecting necessary data and information with the help of observation along with evidence as well. On the other hand, researcher could have conducted secondary source of data analysis technique as well in order to collect necessary data and information from books and journals.  

Reference: 

Butler, M.G. and Callahan, C.M., 2014. Human resource outsourcing: Market and operating performance effects of administrative HR functions. Journal of Business Research, 67(2), pp.218-224.

Flick, U., 2015. Introducing research methodology: A beginner’s guide to doing a research project. Sage.

Garrison, G., Wakefield, R.L. and Kim, S., 2015. The effects of IT capabilities and delivery model on cloud computing success and firm performance for cloud supported processes and operations. International Journal of Information Management, 35(4), pp.377-393.

Gorla, N. and Somers, T.M., 2014. The impact of IT outsourcing on information systems success. Information & Management, 51(3), pp.320-335.

Gunasekaran, A., Irani, Z., Choy, K.L., Filippi, L. and Papadopoulos, T., 2015. Performance measures and metrics in outsourcing decisions: A review for research and applications. International Journal of Production Economics, 161, pp.153-166.

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.

Marshall, D., Ambrose, E., McIvor, R. and Lamming, R., 2015. Self-interest or the greater good: How political and rational dynamics influence the outsourcing process. International Journal of Operations & Production Management, 35(4), pp.547-576.

Plugge, A., Bouwman, H. and Molina-Castillo, F.J., 2013. Outsourcing capabilities, organizational structure and performance quality monitoring: Toward a fit model. Information & Management, 50(6), pp.275-284.

Taylor, S.J., Bogdan, R. and DeVault, M., 2015. Introduction to qualitative research methods: A guidebook and resource. John Wiley & Sons.

Teo, T.S. and Bhattacherjee, A., 2014. Knowledge transfer and utilization in IT outsourcing partnerships: A preliminary model of antecedents and outcomes. Information & Management, 51(2), pp.177-186.

Vaioleti, T.M., 2016. Talanoa research methodology: A developing position on Pacific research. Waikato Journal of Education, 12(1).

Wiek, A. and Lang, D.J., 2016. Transformational sustainability research methodology. In Sustainability Science (pp. 31-41). Springer Netherlands.

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