Outsourcing and Offshoring Business Services

This assignment delves into the complex world of outsourcing and offshoring business services. Students are tasked with critically evaluating the benefits and drawbacks associated with these practices, drawing upon academic research and real-world examples. The analysis should encompass various aspects, such as cost reduction, quality improvement, risk management, and legal considerations. Furthermore, the assignment encourages students to explore effective strategies for successful implementation of outsourcing and offshoring initiatives.

RESEARCH PROJECT
Table of Contents

CHAPTER 1: INTRODUCTION....................................................................................................3
1.1 Overview of the research .................................................................................................3
1.2 Background of the company ............................................................................................3
1.3 Research Aim...................................................................................................................3
1.4 Research Objectives.........................................................................................................3
1.5 Research Questions..........................................................................................................4
1.6 Rationale of the research..................................................................................................4
CHAPTER 2: LITERATURE REVIEW.........................................................................................4
2.1 The concept of offshoring and outsourcing in regards to business..................................4
2.2 The benefits and risks of outsourcing and offshoring......................................................5
2.3 Effectiveness of outsourcing and offshoring on business performance of Sainsbury plc 5
2.4 Different ways through which Sainsbury plc can easily overcome risks of offshoring and
outsourcing.............................................................................................................................6
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................7
3.1 Type of Investigation........................................................................................................7
3.2 Research Philosophy........................................................................................................8
3.3 Research Approaches.......................................................................................................8
3.4 Research Design...............................................................................................................9
3.5 Data collection method.....................................................................................................9
3.6 Sampling...........................................................................................................................9
3.7 Ethical considerations.....................................................................................................10
CHAPTER 4: DATA ANALYSIS AND INTERPRETATIONS.................................................10
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS...................................................22
Conclusion............................................................................................................................22
Recommendations................................................................................................................23
Reflective statement.............................................................................................................23
REFERENCES..............................................................................................................................25

TITLE: “To investigate the benefits and the risks of offshoring and outsourcing on business
performance at global level. A case study on Sainsbury plc.”
CHAPTER 1: INTRODUCTION
1.1 Overview of the research
Outsourcing defines that when an organisation contract to do work with 3rd party
whereas, offshoring means getting work done in various nations generally leverage cost
advantages. These have benefits as well as risk both on the performance of organisation at global
level (Liang and et. al., 2016). Every organisation is now a days using off-sourcing as well as
outsourcing both and it give positive and negative impact on the business of such business. Thus,
this research will going to investigate the risk and benefits related to off-sourcing and
outsourcing on the performance of company at global level.
1.2 Background of the company
Sainsbury's is retailing industry organisation founded in 1869 and its founder is John
James Sainsbury. Respective organisation have its headquarter in 33 Holborn, London, EC1,
United Kingdom and they are serving within UK only as well as having approx. 1415 shops
(González, Gascó and Llopis, 2016). Products offering by sainsbury's are hypermarket,
supermarket, superstore, forecourt shop as well as convenience shop. Same company have
several competitors within market named as TESCO, Asda, ALDI etc..
1.3 Research Aim
Aim of the research: “To investigate the benefits and the risks of offshoring and outsourcing on
business performance at global level. A case study on Sainsbury plc.”
1.4 Research Objectives
 To understand the concept of offshoring and outsourcing in regards to business.
 To identify the benefits and risks of outsourcing and offshoring.
 To evaluate effectiveness of outsourcing and offshoring on business performance of
Sainsbury plc.
 Recommend different ways through which Sainsbury plc can easily overcome risks of
offshoring and outsourcing.

1.5 Research Questions
 What is the concept of offshoring and outsourcing in regards to business ?
 What are the benefits and risks of outsourcing and offshoring ?
 How to evaluate effectiveness of outsourcing and offshoring on business performance of
Sainsbury plc ?
 What are the different ways through which Sainsbury plc can easily overcome risks of
offshoring and outsourcing ?
1.6 Rationale of the research
Main reasons behind choosing this research project is to identify the impact of offshoring
and outsourcing on business performance at global level. Research topic is very large that help
an investigator to learn new things and improve as well as also assist in enhancing their current
skills. Personal reason for choosing this research is to improve different skills such as data
analysis, data interpretation, literature review and many other. On the other side, professional
reason for choosing this researcher is to explore influence of outsourcing and offshoring and gain
better advantages for future improvements (Kakabadse and Kakabadse, 2017). Along with this,
this research will also assist a investigator in personal manner by enhancing their its literature
review skills as well as understanding about the data collection or data analysis methods.
Therefore, with the aid of literature, a researcher can fulfil research gap in easy manner. Main
gap for this research is how to identify importance of several market development strategies in
relation of company. It is a biggest challenge for researcher, for this they need to conduct a
research and fulfil such type of gaps within systematic as well as effectual way.
CHAPTER 2: LITERATURE REVIEW

2.1 The concept of offshoring and outsourcing in regards to business
The offshoring can be described as the criteria of obtaining facilities or goods from the
another nation. As per opinion given by Jeffrey Glen (2019), it can be considered as primarily a
geographical activity as it is beneficial to reduce expenses which facilitate to deliver product to
customers at reasonable price. However, it has been analysed that there are number of reasons
behind selecting the option of offshoring such as cost, tax & tariffs and control. Initially, it will
facilitate to provide cost of products at cheaper rate which is favourable for clients and
Sainsburry plc. However, the company get relief regarding tax & tariffs in few of nations.
At the other hand, the outsourcing can be explained as the process in which an
organisation contracting work out to third party. It consist the criteria of obtaining accounting
services or manufacturing of a certain input to other organisation. Meanwhile, it has been
analysed that outsource can be done to an enterprise which is situated anywhere as the location
of a business concerns is not important (Mihalache and Mihalache, 2016). There are number of
reasons behind opting outsourcing including cost, specialisation and flexibility respectively. It is
helpful to boost up overall profitability of business concern which is favourable to for an
organisation or improving overall efficiencies of staff members in order to increase the profits
share in market.
2.2 The benefits and risks of outsourcing and offshoring
Offshoring provides several benefits such as facilitating lower labour costs which is
helpful for Sainsburry to reduce overall expenses of manufacturing and provide better products
to customers at affordable price. As per views of GINO LISONDRA (2019), It involves the
profits of cost savings and tax benefits as well as financial incentives which is favourable for
given organisation to increase profitability. In contrary to this, it has a risk of creating social &
cultural problems and quality control issues which may develop risk of loosing trust factors
among customers. However, is also consist risk of creating unemployment in the home county
which is favourable.
The outsourcing is beneficial in context of cost reduction and savings which is suitable
for Sainsburry plc to save overall cost of production in order to improve profits of business. It is
helpful required to concentrate on few things and access of quality, expertise & better
management skills which is appropriate for business concern. Apart from this, it is risky in terms
of reducing organisational learning by depleting the skill base and loss of control which is very

important for an organisation to avoid high loss (Rodríguez and Nieto, 2016). It is necessary for
an organisation to considered related risk factors to avoid them and grab only profits gained by
method of outsourcing.
2.3 Effectiveness of outsourcing and offshoring on business performance of Sainsbury plc
The method of outsourcing can be considered as an effective technique in respect of
reducing overall cost of manufacturing including labour expense which facilitate to increase
productivity in regular basis. It is also favourable to improve the strategies regarding quality for
completing actual needs of customer which facilitate to gain customers satisfaction respectively.
However, this technique is much efficient in terms of facilitating concentration towards
development of business which is beneficial to boost up brand image in market grab more profit
share. As mentioned by O. Zeynep Aksin and Andrea Masini (2019), the method of outsourcing
is effective in order to focus on quality and facilitate employees to become more skilled &
capable in order to carrying out overall operational activities in more effective as well as
efficient way which facilitate to improve clients satisfaction by product. In addition to this, it is
also effective in context of achieving flexibility as well as enhancement of business which is
helpful to improve the brand image on Sainsburry in market.
At the other hand, offshoring can be considered as the most effective approach in context
of reducing the overall manufacturing cost which is favourable in terms of attaining better profits
in business (Liu, Wang and Huang, 2017). It involves the criteria of converting extra expenses
into quality improving practices which is suitable for Siansburry to satisfy actual needs, wants
and demands of customers which is helpful to make strong customer base. However, it will
provide support to attract new clients towards brand along with retaining the current which
facilitate to increase in number of loyal consumers which are considered as long term of
profitability for an organisation.
2.4 Different ways through which Sainsbury plc can easily overcome risks of offshoring and
outsourcing
Every thing have its benefits and risk both same as offshoring as well as outsourcing also
have. But there are several ways which can be use by organisation to overcome with these.
Explanation of these are as follows :-

Outsourcing – There are mainly three risk related to outsocurcing such as financial, delay
in production and delivery risk. As per views of Mangan, Lalwani and Lalwani (2016)Reducing
outsourcing risks is a continuous practice that starts with the decision-making procedure on
selecting the right outsourcing partner as well as continues throughout the course of the
partnership. Furthermore, judgement stage is the perfect time for defining risks and for planning
purpose to minimize them. There are some ways through which outsourcing risk can be reduced
mention below :-
 Set KPIs – It is necessary for manager of sainsbury to comunicate their objectives as well
as expectation with outsourcing providers. Along with this, it is alos necessary to explain
quality standards and set key performance indicators (KPIs) for outsourcing team
memebers. Such practices will assist in measuring gauge for analysing how well they are
performing.
 Demand transparency - Outsourcing provider have to be explicit with their
methodology. Ask them about how they manage and execute projects and find out if they
have the flexibility to adjust and scale their procedures according to the set of standards.
modification as well as demands within market or industry are constantly varies and it is
important to have a partner which is quick for implementing changes (Fratocchi and et.
al., 2016.
Offshoring - Implementation of offshoring result in several risk in relation of Sainsbury.
Thus, for minimising these it is necessary to take some major steps which are as follows :- Data Security – Locationof data and its security is major concern so it is necessary to
develop data security and location plan from the outset. Thus, it must be cover where
information or data will be stored, level of access, consequences of data theft as well as
physical security measures within the facilities (Uluskan, Joines and Godfrey, 2016).
 Dealing with staff concern - Communication as well as good managemnet is the vital
plan to offshore team role because local staff members feel their job security is under
threat.

CHAPTER 3: RESEARCH METHODOLOGY
3.1 Type of Investigation
The type of investigation is required to selected by researchers which is appropriate for
carrying out the study as per given desired topic. It can be categorised in to two categories such
as qualitative and quantitative research. Initially, the qualitative research can be described as an
effective method of gathering reasons, opinions and motivations for underlying them in context
given topic (Patrucco, Scalera and Luzzini, 2016). However, this technique is considered to be
helpful to render insights into specific problem or facilitate to generate innovative ideas for
conducting investigation. At the other hand, quantitative research can be use for quantifying the
specific problem in order to create numerical data or information which can be coveted into
usable statistics. Moreover, this method provide support in respect of using it for quantifying
behaviours, opinion, attitudes and other defined variables (Lahiri, 2016). The present study will
consider the utilisation of qualitative research to determine risk and befits of outsourcing &
offshoring on business performance of Sainsburry plc at global level.
3.2 Research Philosophy
The research philosophy can be considered as a belief about the way in which
information regarding a phenomena should be gathered, analysed and used. It can be categorised
into interpretivism and positivism in which suitable one is required to be selected by investigator
for conducting overall study in effective manner. However, interpretivism refers to research that
is more qualitative along with utilising unstructured interviews or participant observation
(Musteen, 2016). In contrary to this, positivism prefer to considered qualitative method such as
structured questionnaires, official statistics and social surveys in order to gain accurate findings.
The given investigation will focus on interpretivism philosophy of research in order to gain
appropriate findings regarding given topic of analysing risk and befits of outsourcing &
offshoring on business performance of Sainsburry plc in context of global level. It is necessary to
used this method for conducting whole study in more effective as well as efficient manner for
attaining better outcomes respectively.
3.3 Research Approaches
The research approaches can be classified as inductive and deductive methods in which
suitable one should be selected to conduct overall study in proper way. However, deductive

research approach can be described as process which moves from idea to observation and
facilitate to sequences from more general to specific criteria (Bendell, 2017). It involves that
deductive arguments have unassailable conclusions with the help of assuming overall premisses
that are true. At the other hand, inductive research approach is responsible to follow the criteria
that induction moves from observation to idea and follow to be more specific to general.
Moreover. It consist that inductive arguments are considered to be simply have some measure of
an argument which is true. This investigation inductive research approach by focusing to move
from idea to observation in order to identify risk and befits of outsourcing & offshoring on
business performance of Sainsburry plc globally.
3.4 Research Design
The research design refers to a framework of techniques and methods selected by an
investigator to make combination of number of elements of study in a reasonably logical way in
order deal with specific problem properly. It can be categorised into three categories such as
descriptive, experimental and exploratory. However, researcher use descriptive research design
in order to describe solely specific situation or case in overall investigation. In addition to this,
experimental research design can be utilised for establishing relationship between cause and
effect of particular condition (Kasemsap, 2016). Moreover, the another one is exploratory design
that is explained to explore ideas and thoughts which are key as it is primarily dependent on their
personal inclination regarding specific topic. The present study will focus on descriptive research
design in order to conduct proper analysis of risk and befits of outsourcing & offshoring on
business performance of Sainsburry plc in global level respectively. It is helpful to gain detailed
description about the topic which facilitate to attain accurate results.
3.5 Data collection method
Data collection refers to the process of gathering related information with the help of
using different sources of data selection. The data collection sources of can be categorised into
primary and secondary which can be used for gathering relevant data for analysing the same.
However, the primary information is known as first hand data which is collected by investigator
with the help of carrying put interviews, surveys, fieldwork and internet communication
including through blogs, listservs, email as well as newspaper. It consist several primary sources
like legal & historical documents, eyewitness accounts, results of experiments, statistical data,
pieces of creative writing, audio & video recordings, speeches and art objects (Giannakis and

Papadopoulos, 2016). At the other hand, secondary data collection can be done to gather related
data with the help of utilising number of sources such as books, journals, articles, documentaries
etc. which are already used by other researchers as well. The given investigation will use
secondary sources for information to determine risk & benefits of offshoring and outsourcing on
business performance of Sainsburry plc in international context.
3.6 Sampling
The sampling can be described as selecting respondents from target population in order to
gain their views in order to gain appropriate findings appropriately (Lacity, Khan and Yan,
2017). It can be classified as random and non random sampling having their specific sub parts.
However, random sampling is further categorised into simple, stratified, multistage stratified and
equal probability systematic sampling. In addition to this, the non random sampling can be
divided into several components such as quota, availability and expert sampling (Tukker and
Tischner, 2017). The present report will focus on random sampling sampling by selecting
respondents for proper study having sample size of 40 members.
3.7 Ethical considerations
The ethical considerations can be described as ethical norms, principles and values that
are required to be followed by investigator at the time of carrying out overall study. It consist the
risk of occurring conflict situation so that researcher should establish an effective plan in terms
of overcoming such problems for avoiding negative impacts of them in study (Lin, Tan and
Chen, 2017).
However, it is necessary for investigator to take permission while using data related to an
individuals or organisation or conducting research and put proper duration of time for carrying
out overall study for gaining accurate results. Moreover, it is essential to put desired cost on
research for achieving desired findings accordingly (Jazairy, Lenhardt and von Haartman, 2017).
Alternative research method
There is an alternative research method that can be use by researcher for gathering
information and data related to the topic from respondents. This method is face to face interview
but this was not utilise by researcher as it is expensive and time consuming procedure.

CHAPTER 4: DATA ANALYSIS AND INTERPRETATIONS
This questionnaire will be filled by variety of respondents like financial analysts, key
position holders in company, industry experts and few personnels of government authorities.

Q1. What rating (out of 5) will you give to your knowledge about offshoring and
outsourcing?Ans 1.
(A) 5
(B) 4
(C) 3
(D) 2 or below 2
Q2. What are the key benefits of Offshoring?
Ans 2.
(A) Business growth
(B) Access to vast pool of talent
(C) Reduced risk
(D) Better Control
Q3. What are major risks associated with Offshoring?
Ans 3.
(A) Cultural differences
(B) Data security
(C) Issue regarding quality control
(D) Subpar employee management
Q4. What are the major benefits of outsourcing?
Ans 4.
(A) Focus on core business activities
(B) Staffing flexibility
(C) Reducing in cost of business
(D) Improved service
Q5. What are main demerits of outsourcing?
Ans 5.
(A) Issue of trust
(B) Risks regarding confidentiality
(C) Less control on business activities
(D) Hidden cost
Q6. What business process can be outsourced by Sainburry?Ans 6. (A) Customer queries(B)

Complaint registration(C) IT security
Q7. Which country is best for Offshoring and Outsourcing?
Ans 7.
(A) China
(B) South Africa
(C) Australia
(D) Spain
Q8. How can company overcome barriers of Offshoring and Outsourcing?
Ans 8.
(A) Start multicultural sensitization program
(B) Continuous monitoring of KPI and Balance-scorecard
(C) Hire Outsourcing advisers
Q9. In your view, should Sainsburry start Offshoring and Outsourcing their business process
or not?
Ans 9.
(A) Yes, they should
(B) No, they shouldn't
Q10. Is there any suggestion for future research?
13

Theme 1: Rating (out of 5) will you give to your knowledge about offshoring and outsourcing.
Q1. What rating (out of 5) will you give to
your knowledge about offshoring and
outsourcing?
Frequency
(A) 5 15
(B) 4 10
(C) 3 5
(D) 2 or below 2 10
Interpretation – After going through the above mention graphical presentation it has been
analysed that most of the people have knowledge related to the offshoring as well as outsourcing.
Because most of the people are rating 5 because they know about this topic. 15 respondents out
of 40 are giving 5 rating. Then after, 4 rating is given by 10 respondents and 10 people are in
favour of both 5 as well as 4 rating. Although, remaining 5 respondents out of 40 are in favour of
3 rating.
(A) 5 (B) 4 (C) 3 (D) 2 or below 2
0
2
4
6
8
10
12
14
16 15
10
5
10
Column B

Theme 2: The key benefits of Offshoring
Q2. What are the key benefits of Offshoring? Frequency
(A) Business growth 10
(B) Access to vast pool of talent 15
(C) Reduced risk 10
(D) Better Control 5
Interpretation – From the above given graphical presentation it has been analysed that, there are
several benefits of offshoring For sainsbury plc such as business growth, access to vast pool of
talent, reduced risk and better control. One of the major benefit is access to vast pool of talent
because out of 40 respondents 15 are in the favour of it. Along with this 10 are saying respective
organisation will gain business growth through offshoring. Thus out of remaining 15, 10 are
saying it will reduce risk and 5 are in the favour of better control.
15
(A) Business growth
(B) Access to vast pool of talent
(C) Reduced risk
(D) Better Control
0
2
4
6
8
10
12
14
16
10
15
10
5 Column B

Theme 3: Major risks associated with Offshoring
Q3. What are major risks associated with
Offshoring?
Frequency
(A) Cultural differences 5
(B) Data security 10
(C) Issue regarding quality control 15
(D) Subpar employee management 10
Interpretation – After going through the above mention graphical presentation it has been
analysed that there are several risk related offshoring such as Cultural differences, Data security,
Issue regarding quality control and Subpar employee management. One of the major issues is
related to the quality control because out of 40 respondents 15 are in the favour of it. Whereas,
20 are saying risk company will face are Data security as well as Subpar employee management.
Thus, remaining 5 respondents are in the favour of cultural differences.
16
(A) Cultural differences
(B) Data security
(C) Issue regarding quality control
(D) Subpar employee management
0
2
4
6
8
10
12
14
16
5
10
15
10
Column B

Theme 4: The major benefits of outsourcing
Q4. What are the major benefits of
outsourcing?
Frequency
(A) Focus on core business activities 7
(B) Staffing flexibility 13
(C) Reducing in cost of business 12
(D) Improved service 8
17
0
4
8
12
7
13 12
8
Column B

Interpretation – From the above mention graphical presentation it has been analysed that there
are some benefits of outsourcing such as focus on core business activities, staffing flexibility,
reducing in cost of business and improved services. One of the major benefit company will gain
according to the view point of respondents is staffing flexibility as well out of 40 respondents 13
are in the favour of it. After this another benefit is reduction in cost of business and out of 40
people 12 are in the favour of this as well as 8 respondents are saying organisation can improve
their services. Whereas, remaining 7 are in the favour of focus on core business activities.
Theme 5: Main demerits of outsourcing
Q5. What are main demerits of outsourcing? Frequency
(A) Issue of trust 12
(B) Risks regarding confidentiality 12
(C) Less control on business activities 10
(D) Hidden cost 6
18

(A) Issue of trust
(B) Risks regarding confidentiality
(C) Less control on business activities
(D) Hidden cost
0
2
4
6
8
10
12
12 12
10
6
Frequency
Interpretation -It is clearly seen from the above graph there are lots of demerits of outsourcing
which are being observed during the research. Among the 40 respondents, 12 respondents thinks
issues of trust will be a major demerit for an organisation whereas other 12 people consider risks
related with maintaining confidentiality as major demerit. The remaining 10 and 6 respondents
have different views as according to them less control on business activities and hidden cost will
become a major demerit of outsourcing respectively.
Theme 6: Business process can be outsourced by Sainburry
Q6. What business process can be outsourced
by Sainburry?
Frequency
(A) Customer queries 15
(B) Complaint registration 12
(C) IT security 13
19

(A) Customer queries
(B) Complaint registration
(C) IT security
0
2
4
6
8
10
12
14
16
15
12
13
Frequency
Interpretation - It is clearly identified from the above graph that there are different processes
that can be outsources by the Sainsbury. Out of the 40 respondents, 15 respondents thinks that
outsourcing enable an organisation to get customers' queries whereas the other 12 and 13
respondents have different opinion as according to them outsourcing enables company to register
complaint and IT security purposes respectively.
Theme 7: Country is best for Offshoring and Outsourcing
Q7. Which country is best for Offshoring and
Outsourcing?
Frequency
(A) China 11
(B) South Africa 8
(C) Australia 12
(D) Spain 9
20

Interpretation – After going through the above mention graphical presentation it has been
analysed that Australia is the best Country because out of 40 respondents 12 are in the favour of
it. Whereas, on the second no. China is the suitable nation for offshoring as well as outsourcing.
Although, remaining 17 people are in the favour of Spain and South Africa. So from this graph it
has been suggested to Sainsburry that they have to use Australia or China for the purpose of
offshoring as well as Outsourcing.
Theme 8: Company overcome barriers of Offshoring and Outsourcing
Q8. How can company overcome barriers of
Offshoring and Outsourcing?
Frequency
(A) Start multicultural sensitization program 12
(B) Continuous monitoring of KPI and
Balance-scorecard
19
(C) Hire Outsourcing advisers 9
21
(A) China
(B) South Africa
(C) Australia
(D) Spain
0
2
4
6
8
10
12
14
11
8
12
9
Column B

Interpretation – After going through graphical presentation it has been identified that Sainburry
have several ways to overcome with the barriers of offshoring and Outsourcing such as start
multicultural sensitization program, Continuous monitoring of KPI and Balance-scorecard as
well as Hire Outsourcing advisers. Respective organisation have to continuous monitoring of
KPI and balance-scorecard which help them to overcome with barriers of offshoring and
outsourcing as well out of 40 respondents 19 are in the favour of it. After this second way is to
Start multicultural sensitization program to overcome with these barriers and 12 respondents are
in favour of it. Whereas, remaining 9 people are in the favour of hire outsourcing adviser. Thus,
for Sainsburry plc have to do continuous monitoring of KPI and balance-scorecard to overcome
with the barriers of offshoring as well as outsourcing.
Theme 9: Sainsburry start Offshoring and Outsourcing their business process or not
Q9. In your view, should Sainsburry start
Offshoring and Outsourcing their business
process or not?
Frequency
(A) Yes, they should 30
(B) No, they shouldn't 10
22
(A) Start multicultural sensitization program
(B) Continuous monitoring of KPI and Balance-scorecard
(C) Hire Outsourcing advisers
0
2
4
6
8
10
12
14
16
18
20
12
19
9
Column B

Interpretation – From the above mention graphical presentation it has been analysed that
Sainsburry plc have to start Offshoring and Outsourcing their business. It has been identified by
the view point of respondents because out of 40 people 30 are in the favour of this. Whereas,
remaining 10 are not in the favour of this they are saying company should not start offshoring
and outsourcing of their business.
CHAPTER 5: CONCLUSION AND RECOMMENDATIONS
Conclusion
From the above report, it has been concluded that outsourcing can be described that when
an organisation contract to do work with 3rd party. It consist another concept of offshoring which
can be explained to getting work done in various nations generally leverage cost advantages.
However, it consist the benefits of both these options while opting them by a company in context
of gaining benefits like reducing cost, increasing profitability, improve quality of product and
flexibility. In addition to these methods are also results into several risk which are required to be
focussed by management of given company to avoid their negative impacts accordingly.
Meanwhile, effective of outsourcing and offshoring involves to increase customers base, increase
brand value and grab more profit share in market respectively. Moreover, this assignment will
summaries efficient ways to overcome risks including set KPIs & demand transparency whereas
in context of offshoring, the data security and sealing with staff concern are helpful to overcome
problems. It has been determined that barriers of offshoring and outsourcing can be overcome
with the help of several strategies like start multicultural sensitisation program, continuous
23
(A) Yes, they should (B) No, they shouldn't
0
5
10
15
20
25
30
35
30
10
Column B

monitoring of KPI & balance scorecard and hire outsourcing advisors. Furthermore, the
secondary sources of data collection are used to gather related information and analyse it to gain
accurate findings. It also consist utilisation descriptive research design and qualitative method to
analyse behaviours and opinions regarding risks & benefits of outsourcing and offshoring.
Recommendations
Considering the above discussed information, it has been recommended that outsourcing
and offshoring are beneficial for business but they both carry risk factors along with them. It is
necessary for organisations to focus on related risk factors in order to remain prepare for
overcoming problems along with achieving benefits of these techniques in proper manner.
However, it is important for given organisation to establish more effective as well as efficient
strategies in terms of dealing with forthcoming issues in correct way (Sobinska and Willcocks,
2016).
In addition to this, it is suggested that organisation is required to carrying out learning
and training sessions for boosting up skills & abilities of staff members so that they can easily
cope up with problems relevant to outsourcing and offshoring (Dutta, Gwebu and Wang, 2017).
Moreover, it is necessary for business concerns to put effective efforts for increasing overall
efficiencies of organisation to overcome barriers of outsourcing as well offshoring.
Reflective statement
I am really grateful to have an amazing opportunity for carrying out research on an
appropriate topic of analysing risk and befits of outsourcing & offshoring on business
performance of Sainsburry plc at global level. It is very supportive for me in context of boosting
up my own skills and abilities to conduct investigation in more accurate manner in future.
However, I have faced some of problem at the time of carrying out this research because to
duration of time which has been given to me was not sufficient. It is responsible for making the
overall study more challenging for me in respect of gathering relevant information of selected
topic. Apart from this, I have tried my best in order to accumulate relevant as well as accurate
information which provide help to me for completing set aims and objectives of the whole
investigation. Moreover, my performance in collecting data and gathering view of respondents is
helpful in respect of boosting up my communications skills which can be considered as
supportive to conduct another investigation in future time. Furthermore, I also being able to
develop mu own capability and knowledge level in context of methods as well as tools which is
24

commonly implemented for gathering and evaluating along with interpreting information in
more effective as well as efficient way. In addition to this, my overall experiences of this study
help me to enhance my knowledge, skills and capabilities which will provide help to me for
conducting research in future appropriately.
25

REFERENCES
Books and journals
Liang, H. and et. al., 2016. IT outsourcing research from 1992 to 2013: A literature review based
on main path analysis. Information & Management, 53(2), pp.227-251.
González, R., Gascó, J. and Llopis, J., 2016. Information systems outsourcing reasons and risks:
review and evolution. Journal of Global Information Technology Management, 19(4),
pp.223-249.
Kakabadse, N. and Kakabadse, A., 2017. Global IT sourcing: Analysis, developments and best-
practice considerations. In Global Outsourcing Strategies (pp. 73-88). Routledge.
Mihalache, M. and Mihalache, O.R., 2016. A decisional framework of offshoring: integrating
insights from 25 years of research to provide direction for future. Decision
Sciences, 47(6), pp.1103-1149.
Rodríguez, A. and Nieto, M.J., 2016. Does R&D offshoring lead to SME growth? D ifferent
governance modes and the mediating role of innovation. Strategic Management
Journal, 37(8), pp.1734-1753.
Liu, S., Wang, L. and Huang, W.W., 2017. Effects of process and outcome controls on business
process outsourcing performance: Moderating roles of vendor and client capability
risks. European Journal of Operational Research, 260(3), pp.1115-1128.
Mangan, J., Lalwani, C. and Lalwani, C.L., 2016. Global logistics and supply chain
management. John Wiley & Sons.
Fratocchi, L. and et. al., 2016. Motivations of manufacturing reshoring: an interpretative
framework. International Journal of Physical Distribution & Logistics
Management, 46(2), pp.98-127.
Patrucco, A.S., Scalera, V.G. and Luzzini, D., 2016, July. Risks and governance modes in
offshoring decisions: linking supply chain management and international business
perspectives. In Supply Chain Forum: an International Journal(Vol. 17, No. 3, pp. 170-
182). Taylor & Francis.
Musteen, M., 2016. Behavioral factors in offshoring decisions: A qualitative analysis. Journal of
Business Research, 69(9), pp.3439-3446.
Bendell, J., 2017. Terms for endearment: Business, NGOs and sustainable development.
Routledge.
Kasemsap, K., 2016. The role of strategic outsourcing in global business. In Handbook of
research on managerial strategies for achieving optimal performance in industrial
processes (pp. 325-357). IGI Global.
Giannakis, M. and Papadopoulos, T., 2016. Supply chain sustainability: A risk management
approach. International Journal of Production Economics, 171, pp.455-470.
Lin, N., Tan, H. and Chen, S., 2017. Global offshoring portfolio diversity and performance
implications. International Journal of Physical Distribution & Logistics
Management, 47(2/3), pp.114-136.
Sobinska, M. and Willcocks, L., 2016. IT outsourcing management in Poland–trends and
performance. Strategic Outsourcing: An International Journal, 9(1), pp.60-96.
Uluskan, M., Joines, J.A. and Godfrey, A.B., 2016. Comprehensive insight into supplier quality
and the impact of quality strategies of suppliers on outsourcing decisions. Supply Chain
Management: An International Journal, 21(1), pp.92-102.
26

Lahiri, S., 2016. Does outsourcing really improve firm performance? Empirical evidence and
research agenda. International Journal of Management Reviews, 18(4), pp.464-497.
Lacity, M.C., Khan, S.A. and Yan, A., 2017. Review of the empirical business services sourcing
literature: an update and future directions. In Outsourcing and offshoring business
services (pp. 499-651). Palgrave Macmillan, Cham.
Tukker, A. and Tischner, U. eds., 2017. New business for old Europe: product-service
development, competitiveness and sustainability. Routledge.
Jazairy, A., Lenhardt, J. and von Haartman, R., 2017. Improving logistics performance in cross-
border 3PL relationships. International Journal of Logistics Research and
Applications, 20(5), pp.491-513.
Dutta, D.K., Gwebu, K.L. and Wang, J., 2017. Strategy and vendor selection in IT outsourcing:
is there a method in the madness?. In Global sourcing of services: Strategies, issues and
challenges (pp. 451-477).
Online
Glen J., 2019. Offshoring vs. Outsourcing. [Online]. Available
through:<http://www.businessdictionary.com/article/1090/offshoring-vs-outsourcing-
d1412/>
LISONDRA G., 2019. Offshoring and outsourcing - advantages and disadvantages. [Online].
Available through:<https://www.mybusiness.com.au/sales/3366-offshoring-and-
outsourcing-advantages-and-disadvantages>
Zeynep Aksin O. and Masini A., 2019. Effective strategies for internal outsourcing and
offshoring of business services: An empirical investigation. [Online]. Available
through:<https://www.sciencedirect.com/science/article/abs/pii/S0272696307000435>
27