Outsourcing and its Impact on Organizations

This assignment delves into the multifaceted realm of outsourcing and its consequences for organizations. It encourages a critical analysis of the motivations driving businesses to outsource various functions, alongside an exploration of the inherent challenges and potential benefits. The assessment emphasizes the impact of outsourcing on organizational performance, considering factors like efficiency, cost reduction, and innovation. Furthermore, it invites students to examine the evolving landscape of outsourcing in a globalized economy.

Running Head: RESEARCH PROPOSAL
Research Proposal: Impact of Service Outsourced Functions on Financial Performance of
Organizations

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Table of Contents
Introduction................................................................................................................................3
Research Background..............................................................................................................3
Research aim and objectives.....................................................................................................5
Research questions..................................................................................................................5
Justification of the research project...........................................................................................5
Potential output.......................................................................................................................6
Literature review.........................................................................................................................8
Impact of outsourcing marketing services on financial performance of organizations.....................8
The impact of outsourcing security services on financial performance of organizations..................9
The impact of outsourcing information technology services on financial performance of
organizations...........................................................................................................................9
Balanced Scorecard..............................................................................................................9
The impact of outsourcing human resource services on financial performance of organizations....10
Research Hypothesis..............................................................................................................11
Research Methodology..............................................................................................................11
Literature Review..................................................................................................................11
Data Analysis Methods..........................................................................................................11
Organization of the Study.......................................................................................................12
Gantt chart............................................................................................................................12
Chart 2: Gantt chart...............................................................................................................13
Project Budget and Budget Justification...................................................................................13
Conclusion...............................................................................................................................14
References................................................................................................................................16
Chart 1: Balanced Scorecard....................................................................................................10
Chart 2: Gantt chart..................................................................................................................13
Table 1: time structure..............................................................................................................13

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Introduction
This report shows the impact of services function on financial performance on an
organization. Moreover, the main aim of this research proposal is to address techniques and
approaches to identify the impact of outsourced functions on the financial performance of
company. This report also presents the research background, research aim and objectives, and
research justification. Further, it discusses conceptual understanding about the research topic
that is relied on research aim and objectives of the research. Moreover, research methodology
demonstrates the data collection method that will be used in a research study. It will be also
significant to show the techniques, which will be beneficial to resolve the issue of research.
Research Background
The research subject is “to analyses the impact of outsourced function on the financial
performance of an organization. For the current situation, it is mandatory for a corporate to
improve outsourced function issues due to enhancing the financial performance of a
company. It will be appropriate for continuous growth of company at the international level
(Arku, 2013).
For this, it will be vital for a corporate to enhance skills of employees and gain the
understanding regarding outsourced function. Since, it will be effective to enhance the
financial performance of a corporate. At the same time, it can also be beneficial to obtain a
competitive advantage in the upcoming period (Bernard, et al., 2014).
In this research, the outsourced function will be imperative for gaining the financial
performance of a corporate in long-run. An organization will use the outsourced functions to
categorize business activity and resolve the issues of consumers in less time and cost. From
the practices of this, an organization capable to build their competence along with abilities to
obtain the higher rate of profit in the marketplace. Moreover, it can be stated that most of the

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RESEARCH PROPOSAL
company of Australia has used the outsourced function in their business to effectively operate
the business along with deal with the upcoming uncertainty (Butler, et al., 2014).
At the same time, it is also illustrated that the application of outsources function can be
crucial to improve the existing situation of an organization along with the organizational
capabilities to manage the unexpected occurrence.
It will be also supportive to enhance competitive benefit in the marketplace. For future,
outsourcing function is vital concepts which were investigated by various researchers with
help of different region. Moreover, it is illustrated that there are certain elements which forces
to researcher for choosing the research named motivating research issue, the role of
outsourced function in improving the financial performance of the organization. Additionally,
it can be illustrated that these factors can attract the researcher to perform the research
regarding the practices of outsourced functions (Caine, et al., 2013).
It will be helpful for obtaining a reliable and vital outcome. Moreover, various researchers
have investigated on factors that affect the financial performance of an organization but there
is lack of research in the context of the impact of outsourced function on the financial
performance of a corporate. Hence, it can be a major cause for the selection of this research
issues.
Research aim and objectives
The aim of the study is to establish the impact of service outsourced functions on the financial
performance of organizations. The specific objectives are discussed as below:
 To find out the impact of outsourcing marketing services on the financial performance
of organizations.
 To establish the impact of outsourcing security services on the financial performance
of organizations.

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RESEARCH PROPOSAL
 To identify the impact of outsourcing information technology services on the financial
performance of organizations.
 To establish the impact of outsourcing human resource services on the financial
performance of organizations.
Research questions
 How outsourcing marketing services affects the financial performance of
organizations?
 To establish the impact of outsourcing security services on the financial performance
of organizations.
 How outsourcing information technology affects the financial performance of
organizations?
 How outsourcing human resource services affect the financial performance of
organizations?
Justification of the research project
The outsourced function plays an imperative role to improve the financial performance of an
organization in long-term. At the same time, it will also supportive to categorize activity of
business as a result, it would be beneficial to solve the issues of customer in long-term.
Moreover, Australian organizations had faced losses regarding the financial performance
condition. This research will be supportive for an organization to understand the different
elements of outsourced function that can influence the business growth (Cummings, et al.,
2014). From this research, the organization will able to find out the mechanism to manage the
business fluctuation and financial performance of the company. This research plan helps to
students or readers to broaden the knowledge of the outsourced function. This research
proposal will support the current companies and new business/ entrepreneurs as they can
spread the information about the role, significance, and consequence of the outsourced

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function. As a result, it will help to the company for effectively manage outsourced function.
This research will support the organization for making the effective policy in the context of
the outsourced function (Davidson, et al., 2013).
Potential output
The result of this research will provide the critical outline to evaluate the impact of
outsourced functions on the financial performance of an organization. Thus, this research
report would help to build fresh knowledge and determine the strategies which are practiced
by the organization in order to manage the issues of outsourced function. This research
proposal also offers comprehensive picture about an outsourced function that supports to find
out the elements which influence the financial performance of an organization. The
outsourced function depends on different elements like infrastructure, systems, planning and
organization, and miscellaneous. In addition, it can also be said that such factors directly
influence the ultimate outcome of this research (Ee, et al., 2013). Moreover, each research
questions and objective will determine in this research proposal due to resolving the research
issue systematically. These research results will be examined as an educational work due to
determine the issues of this research proposal. Moreover, this research will assist the
organization to concentrate on such elements to manage the outsourced function in an
appropriate manner.

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Literature review
Impact of outsourcing marketing services on financial performance of organizations
According to Fletcher (2017), illustrated that outsourcing marketing performance can directly
impact on the performance of organization because it prioritizes the optimum use of resources
that affects the organization in long-term. In addition, it is also illustrated that it makes
effective strategies before starting any work, which also helps to meet the goal of an
organization as well satisfy more customers in specified time and cost. Planning of existing
situation demonstrates the actual condition of the organization. It will support to the company
for fast-moving as well as improving the financial performance of the company.
In opposition to this, Gobble (2013) examined that outsourcing human resource services
provide the core roles to an employee of an organization that supports to successfully deal
with the fluctuation of the market in the upcoming period. In the current scenario, it is
examined that companies have used outsourcing central function for its business operation
along with predictable activities can help to obtain the favorable outcome in less time and
cost.
For illustration, telecommunication companies contract to the radiotelephone, telephone,
telegraph to successfully communicate with communication and deal with the problems of
customers due to making a robust relationship with them in long-term.
In support of this, Gunasekaran et al. (2015) illustrated that these kinds of outsourcing can
also affect the financial performance of an organization. It is also illustrated that an
organization can gain their understanding regarding the outsourced function to obtain the
competitive benefit. The core marketing understanding can create by the developing nation
but in the existing time marketing services can be understood by the performance of
marketing in the business activity. Therefore, it can be said that the effective marketing
service outsourcing can directly influence the growth of the company in long-run.

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The impact of outsourcing security services on financial performance of organizations
Mitchell et al. (2013) viewed that an organization should implement the practices of security
outsourcing due to solving the compliance requirements as well as complete their regulatory
obligations in an appropriate manner. It is also stated that company should uses the merchants
to operate card operating schemes for fulfilling with the PCI DSS (Payment Card Industry
Data Security Standards). It is also examined that Payment Card Industry Data Security
Standards could be quite complex to effectively meet the requirement of the internal
employees.
On the other side, Psacharopoulos et al. (2014) explained that the application of a PCI DSS
can be quite expensive for an organization to operate PCI DSS for minimum eight hours per
day in the working culture. At the same time, it is also examined that it supports to
successfully monitor and evaluate the capabilities in an appropriate manner.
The impact of outsourcing information technology services on financial performance of
organizations
In support of this, Rivard et al. (2015) stated that appropriate performance evaluation and
management direct impact on the outsourcing. The outsourcing of the information technology
can directly influence the financial performance of an organization.It is also stated that, for
sustainability, an organization estimates the last record related to the profitability, incorporate
competitively, approaches, and stakeholder to successfully measure the non-financial
performance of the business.
Balanced Scorecard
According to Sivakumar et al. (2015) explained that the balanced scorecard plays a
significant role to measure the financial performance of an organization. It includes two
elements such as non-financial and financial for measuring the quality of the performance of
the company. It considers different elements such as internal business processes; learning,

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RESEARCH PROPOSAL
customers, and growth are included in the non-financial performance. It is supportive to
improve the financial performance of an organization.
In opposition to this, Solakivi et al. (2013) explained that the financial measures are
supportive to develop trust among employees at the working place, which can help to obtain
the competitive advantages. It will also help to improve the performance of an organization
effectively.
Chart 1: Balanced Scorecard
(Source: Solakivi, et al., 2013)
The impact of outsourcing human resource services on financial performance of
organizations
On the other hand, Susomrith et al. (2013) illustrated that Human resources services
outsource plays an imperative role to improve the financial performance of an organization.
It concentrates on the elements that lead to human outsourcing due to enhancing the
performance of the organization.
Taipaleenmäki and Ikäheimo (2013) stated that the proposed strategies are used to make a
connection among the financial performance and human resource services outsourcing. It is

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RESEARCH PROPOSAL
also identified that a major challenge for company is to effectively measure the performance
of human resources outsourcing in the context of improving the financial performance. The
evaluation of the human resource procedure is very complex for the organization because
each member is interconnected with human resource team. At the same time, it is also stated
that the human resource outsourcing can be measured by some different elements named
workforce morale, turnover, and satisfaction level.
Research Hypothesis
The hypothesis of this research is discussed as below:
Null Hypothesis (H0): Outsource Function not impact on the financial performance of an
organization
Alternative Hypothesis (H1): Outsource Function impact on the financial performance of an
organization
Research Methodology
The following points are considered in research methodology to evaluate the research aim of
this research. It is deliberated as below:
Literature Review
In the literature section, resercher will create depth understanding regarding the suitable
literature and evaluates the collected data which are obtained by using different sources like
Emerald, Google scholar, academic journal, and articles of many researchers or authors.
Data Analysis Methods
The data will be analyzed by using mixed data collection methods such as qualitative and
quantitative methods. The researcher will use qualitative analysis to conduct online
communication and discussion with the financial expertise and executives. In contrast,
quantitative analysis will be used by researchers to demonstrate the collected data in statistics,

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RESEARCH PROPOSAL
excel sheet, pie diagrams, numerical data, and arithmetic data practicing, the online websites
and academic Journal (Yee, et al., 2017).
The researcher will use mixed data evaluation method to successfully accomplish the research
objectives of this research in an appropriate manner. Moreover, it can be said that researcher
will also use the quantitative data evaluating method to test the hypothesis wherein the data
accept or reject the estimated outcome (Taylor, et al., 2015).
Beside this, qualitative data evaluating method will be exercised by the researcher to create
conceptual understanding regarding the research issue as it supports to develop the findings in
an appropriate manner. A mixture of research methodologies is practiced to get the specific
clarification for research problem that is determined in the problem statement. Moreover,
researchers will use secondary data to measure the data as compared to first handed
information (Zhang, et al., 2014).
Organization of the Study
The following factors are the organization of this study:
First section: this section will supportive to examine the research plan.
Second section: this chapter will deliberate the concepts or conceptual framework regarding
the outsourced function.
Third section: This section will describe research methodology which incorporates literature
review, data analysis methods, and data collection method.
fourth section: It will discuss the findings and data analysis of the research study.
Fifth section: It will be supportive to analysis the findings and deliberate the proposals in
outsourced functioning (Mackey, et al., 2015).
Gantt chart
The time structure for this research is discussed as below:
Table 1: time structure

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RESEARCH PROPOSAL
Task name Start Day End Day Duration
(Days)
Research
Proposal
01/10/2017 15/10/2017 15
Literature
Review
16/10/2017 16/12/2017 60
Data
Collection
17/12/2017 24/02/2018 67
Analysis of
Data
25/02/2018 25/02/2018 30
Final Report
Submission
26/02/2018 27/02/2018 31
Chart 2: Gantt chart
Research Proposal
Data Collection
Final Report
Submission
10/15/2017
12/16/2017
2/24/2018
2/25/2018
2/27/2018
1/14/1900
2/28/1900
3/7/1900
1/29/1900
1/30/1900
Research Milestones and
Deliverables
Start day Duration (Days)
Project Budget and Budget Justification
The budget for this research is approximate $2100 to complete the aim of this research study
in the specified time period which is given in the Gantt chart.
The budget is depended on the following elements of the research study:
 To accomplish the LR (literature review), course books, online resources, editorial,
and academic journal are needed which cannot be addressed without capital. Hence,
the researcher will spend $700 to purchase such resources.
 Data collection method is also a vital part of research because by using this method
researcher will enable to collect the information regarding the research issue.
Therefore, $700 will be spent by the researcher to collect the accurate information
regarding the research problem.

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RESEARCH PROPOSAL
 A researcher will also spend $500 to address tables, graphs, and supervision of the
data.
In synopsis,
Purpose Estimated amount ($)
Literature Review 900
Data Collection 900
Data Analysis 900
Total financial plan Expectation 2700
Conclusion
From the above conclusion, it can be concluded that the outsourcing marketing services have
a positive impact on the financial performance of organizations. In addition, it can also
summarize that outsourcing security services, outsourcing information technology services,
and outsourcing human resource services also positively influence the financial performance
of an organization in long-term. Finally, it can be concluded that the alternative hypothesis is
accepted because there is a relationship between the outsourced functions and financial
performance. Therefore, it can be said that the outsourced function directly impacts on the
financial performance of the organization.

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References
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perceptions of officials in Ontario, Canada. Public Organization Review, 13(1), 49-70.
Bernard, H. R., & Gravlee, C. C. (Eds.). (2014). Handbook of methods in cultural
anthropology. USA: Rowman & Littlefield.
Butler, M. G., & Callahan, C. M. (2014). Human resource outsourcing: Market and operating
performance effects of administrative HR functions. Journal of Business
Research, 67(2), 218-224.
Caine, V., Estefan, A., & Clandinin, D. J. (2013). A return to methodological commitment:
Reflections on narrative inquiry. Scandinavian Journal of Educational
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Cummings, T. G., & Worley, C. G. (2014). Organization development and change. USA:
Cengage learning.
Davidson, B. I., Desai, N. K., & Gerard, G. J. (2013). The effect of continuous auditing on the
relationship between internal audit sourcing and the external auditor's reliance on the
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Ee, E., Halim, H. A., & Ramayah, T. (2013). HR outsourcing success: Does partnership
quality variables matter?. Journal of Business Economics and Management, 14(4),
664-676.
Fletcher, A. J. (2017). Applying critical realism in qualitative research: methodology meets
method. International Journal of Social Research Methodology, 20(2), 181-194.
Gobble, M. M. (2013). Outsourcing innovation. Research-Technology Management, 56(4),
64-67.

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Gunasekaran, A., Irani, Z., Choy, K. L., Filippi, L., & Papadopoulos, T. (2015). Performance
measures and metrics in outsourcing decisions: A review for research and
applications. International Journal of Production Economics, 161, 153-166.
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Psacharopoulos, G. (Ed.). (2014). Economics of education: Research and studies. USA:
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Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research
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Yee, C. S., Sujan, A., James, K., & Leung, J. K. (2017). Perceptions of Singaporean internal
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