Concept of Outsourcing - PDF

How Effective is
Outsourcing Services
in Current Global
Business Setting
Company

Table of Contents
TITELE:...........................................................................................................................................3
CHAPTER1: INTRODUCTION.....................................................................................................3
Overview of research..............................................................................................................3
Background of research..........................................................................................................3
Rational of the research..........................................................................................................3
Research aim .........................................................................................................................4
Research objectives................................................................................................................4
Research questions.................................................................................................................4
CHAPTER2: LITERATURE REVIEW..........................................................................................4
CHAPTER3: RESEARCH METHODOLOGY..............................................................................7
CHAPTER4: DATA ANALYSES..................................................................................................8
CHAPTER5: RECOMMENDATION, REFELECTION AND CONCLUSION ........................23
Recommendation..................................................................................................................23
Reflection.............................................................................................................................23
Conclusion ...........................................................................................................................24
REFERENCE.................................................................................................................................25

TITELE:
“To determine the effectiveness of outsourcing services in current global business setting
company.” A study on BG Group.
CHAPTER1: INTRODUCTION
Overview of research
Outsourcing has became the major trend in the present business world. This is the
practice in which the business organisation works immensely to send the suitable job operations
and functions outside the business organisation. The term outsourcing means that the outside
established company work effectively to provide services to a third party. This research will
explain the background of the research, rationale for conducting the research, aims and
objectives of research (Chen and. et. al., 2014). It will also concentrate on research methodology
and literature review. Organisation which will be considered for this research is BG Group which
has initiated its operations from the year 1997 and deals in oil and gas industry.
Background of research
The research is to be conducted on the topic of determining the effectiveness of
outsourcing services in current global business setting company. A study on BG Group. This
company deals in oil and gas industry and serves products like crude oil, natural gas, etc. The
company serves its products through out the world. This has been made possible due to the
concept of outsourcing and globalisation. The company was involved in selling these products
and services to the wholesale customers of different countries like retail suppliers and electricity
generating companies, etc. So, it becomes important to identify the effectiveness of supplying or
outsourcing the petrol and natural gases to the other global countries. Furthermore, this has been
made possible due to the concept of globalisation (Gentry and. et. al., 2014).
Rational of the research
The main reason and significance of conducting the research was to identify the
effectiveness of outsourcing services in the current global business world. This will help in
understanding and giving the knowledge about the different option through which the countries
can interact with one another and products and services can be imported and exported.

Furthermore, by analysing the effectiveness the research will help in giving the in depth and
insight view of outsourcing and globalisation (Goldschmidt and Schmieder, 2017). Thus, through
this the business can be expanded and it will contribute in growth and development of the overall
economic climate of the organisation.
Research aim
“To determine the effectiveness of outsourcing services in current global business setting
company.” A study on BG Group.
Research objectives
 To study the concept of outsourcing.
 To determine the effectiveness of outsourcing services in BG Group.
 To study the relationship between globalisation and outsourcing.
Research questions
 Do you know about the concept of outsourcing?
 What are the effectiveness of outsourcing services for BG Group?
 Is there any relationship between outsourcing and globalisation?
Gantt chart: The concept of Gantt chart was created by the Henry Gantt which depicted
the graphical representation of different activities of the research. Under this, the start and finish
date of each activity is placed against each activity which will help the researcher in fulfilling the
objectives of each stage within the specified time frame (Gorla and Somers, 2014). This provides
more favourable and visual results and pictorial presentation helps in completing the research on
time.
CHAPTER2: LITERATURE REVIEW
To study the concept of outsourcing
According to Margaret Rouse (2019), Outsourcing is one of the most important
phenomenon in present business world. It is increasingly being used in present business world
and is used a competitive tool. In this concept, a business organisation focuses on hiring other
company or a person who will be accountable for performing a respective task. They will be
accountable for managing the operations and providing different services. Large number of
business organisations, outsource their products and services and other non core activities so that
they can put emphasis on main business operations and generates revenue. There are many

purposes for which the process and concept of outsourcing are adopted by the companies. For
instance, it will help in maintaining the focus, flexibility and maximisation of customer services
in relation to the basis of the business operations (Gunasekaran and. et. al., 2015). This helps the
businesses, in maximising the performance of the organisation such that they will be able to
manage and establish the control over the operations of the firm and useful in improving the
overall image and goodwill of the company in the global market. It is also useful in bringing the
innovative and creative ideas to the businesses and operating performance of the company.
To determine the effectiveness of outsourcing services in BG Group
According to Flatworld Solutions (2019), Outsourcing has been one the most prominent
term in present business world which has contributed the more quality and cost conscious
businesses through out the world. Therefore, outsourcing services used by BG Group has been
strongly contributed in the overall success and growth of the business. Using this service is
highly effective in BG group in terms of profitability and revenue. The outsourcing services has
brought in significant changes in the organisations structure (Gylling and. et. al., 2015). The BG
Group when thought of adopting outsourcing in their operations then they have minimised the
size and structure of the of the company. During the earlier days it was preferable that the
company must have physical structure but with advancement in technology and communication,
it has been focussed towards the virtual structure of the organisation. The following are the some
of the effectiveness of outsourcing services in BG Group discussed below:
Cost benefit: The most crucial benefit of outsourcing has brought a significant cost
saving benefits to the organisation. This helps in getting job done at comparatively lower cost
and also at better quality.
Increased efficiency: When the BG Group outsource their services to the experienced
partner then this helps the company in bringing expertness in delivering complex projects (Kuek
and. et. al., 2015). Thus, this will help in performing the job in a better way with relevant
knowledge and understanding. Therefore, this will help in contributing to the maximisation in
productivity and efficiency.
Emphasis on key areas: Through outsourcing the business of BG Group will remain
free from forcefulness and allow them to build their brand, invest in innovation through research
and development department, etc.

Saves infrastructure and technology: Through outsourcing, the company is able to
eradicate the necessities for making investment in infrastructure as this helps in taking the
responsibility of the business procedures and develops infrastructure for the same (Lan and. et.
al., 2016).
Access to skilled resources: With this, the BG Group will not required to invest in hiring
and recruiting the candidate. Because the company who indulge themselves in outsourcing,
keeps in mind the access to hire skilled resources. Therefore, the people are already educated and
have higher level of skill and knowledge.
Time zone effectiveness: Apart from the various effectiveness of outsourcing services,
one of the most prominent one is saving or removing the barrier of different time zones.
To study the relationship between globalisation and outsourcing
According to Jill Heaney (2019), the term globalisation has been driven by different
resources and technological advancements. The concept of outsourcing and globalisation is
different from one another but still they are related to each other. The outsourcing of services has
been made possible for the BG Group to different parts of the world only through the
globalisation which has successfully removed the different barriers for imports and exports. The
outsourcing has been adopted by the multinational companies because globalisation help them in
adopting the different changes prevailing in the outside world and expand their business in order
to achieve the desired set of business goals and objectives so the company remains competitive
in nature. Therefore, collaboration with third party has been possible through globalisation which
has contributed in sharing information, specifications of the projects and sensitive information
regarding the scope of the project. Therefore, globalisation and outsourcing helps in defining the
present business world as high tech global village (Larcker, McCall and Ormazabal, 2015). The
growth and develop of communication sector, global networks, public and freely available
information, logistics, internet, etc. has brought in different services which makes the business
enterprise effective and efficient in overall work and operations. Such kind of development has
helped in maximising the efficiency of important traditional industries, and in absence of this, the
business houses will distribute their manpower and resources. This also helps in creating a room
for the providers to help local companies in lifting their operations.