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HI6008 - Advantages and Disadvantages of Outsourcing Business

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Holmesglen Institute

   

HI6008 Business Research (HI6008)

   

Added on  2020-03-01

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Outsourcing is an allocation of a particular business process to a specialist external service provider. Many times, the organizations are failed to handle all aspects of a business process internally. This paper focuses on the advantages and disadvantages of business outsourcing. It includes - theories related to outsourcing, different theme development and research gap and contribution.

 

HI6008 - Advantages and Disadvantages of Outsourcing Business

   

Holmesglen Institute

   

HI6008 Business Research (HI6008)

   Added on 2020-03-01

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Running head: BUSINESS RESEARCH METHODOLOGYBusiness Research MethodologyName of the Student Name of the University Author Note
HI6008 - Advantages and Disadvantages of Outsourcing Business_1
1BUSINESS RESEARCH METHODOLOGYTable of Content Literature Review............................................................................................................................31.1 Introduction................................................................................................................................31.2 Scope of the Literature...............................................................................................................71.3 Literature Review Objectives....................................................................................................81.4 Different theme development....................................................................................................81.5 Quality and currency of the literature........................................................................................81.6 Literature review source validity and reliability........................................................................91.7 Research Gap and Contribution...............................................................................................101.8 Conclusion...............................................................................................................................10References and Bibliography.........................................................................................................11
HI6008 - Advantages and Disadvantages of Outsourcing Business_2
2BUSINESS RESEARCH METHODOLOGYTopic- Advantages and Disadvantages of Outsourcing Business FunctionsLiterature Review1.1 Introduction Outsourcing is an allocation of particular business process to a specialist external serviceprovider. Many a times, the organizations are failed to handle all aspects of a business processinternally. Moreover, some techniques are temporary and the organization does not intend to hirein-house professional to implement the tasks. When the task is outsourced to the serviceprovider, the service provider will take the responsibility of performing the tasks as well asmaintaining organization’s assets. The existing studies indicate that outsourcing is a knownpractice among both private and public organizations and it is treated as the major aspect ofbusiness strategy. As put forward by Tayauova (2012), the process of the outsourcing can belooked upon as the strategic move among the business. The authors claim that this techniquecould attempt and decrease the total cost of maintaining or maximizing the productivity. The studies indicate that outsourcing could allow the organization to focus on thefundamental activities of the business. For last two decades, the researchers have supported thisphenomenon as one of the significant ways for minimizing the cost; nonetheless, the total impactof this practice remains explained conundrum. In order to conduct the literature review, somespecific journals on outsourcing have been selected. However, this selection has been done basedon the theme found in the literature. As put forward by Liu and Wang (2014), the outsourcing usually known as offshoringcarries some advantages and disadvantages but in most of the cases, the benefit overshadow the
HI6008 - Advantages and Disadvantages of Outsourcing Business_3
3BUSINESS RESEARCH METHODOLOGYdrawbacks of outsourcing. The existing studies have discussed about the following advantagesand disadvantages of outsourcing. Swiftness and Expertise-In many cases, the business activities are outsourced to vendorswho are specialized in their field. The outsourced vendors also have some particular equipmentsas well as technical expertise, which are better than those at the outsourcing organization are.Hence, the business activities are effectively completed with a better quality in short time.Focus on the core instead of the supporting ones- Outsourcing the supporting processesprovides the organization with more time to strengthen their fundamental business process. Thismeans the organization could outsource its supporting services, and put special attention tofundamental aspects of the business. Risk-Sharing- As put forward by Dolgui and Proth (2013) one of the significant factorsdetermining the consequence of an organization is risk-analysis. This means outsourcing certainaspects of the business process helps the organization to shift some particular responsibilities tooutsourced vendors. Hence, the outsourced vendor is a specialist, they could develop the plan ofrisk mitigating the factors more effectively. Minimized operational and recruitment costs- It is observed that outsourcing elude theneed to hire individuals in-house, here recruitment and operational costs can be reduced to alarge extent (Jensen 2012). This is one of the significant advantages of offshore outsource. Disadvantages of outsourcing- The studies claim that the major disadvantages of outsourcing are the managerial controlover the outsourced operations, threat to security, confidentiality, hidden cost, quality issue as
HI6008 - Advantages and Disadvantages of Outsourcing Business_4

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