Management Assignment 2022

Running Head: MANAGEMENT
Management
Name of the Student
Name of the University
Author note

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Executive Summary
The report has thrown light on analyzing the different kinds of utilization of the
outsourcing aspects in the business-related activities. In the current scenario, it can
be seen that there are different companies which have opted for outsourcing of the
different business-related activities that has enhanced the activities in a suitable
manner. WhatsApp has been one of the suitable examples through which it can be
seen that the prime activities were undertaken by WhatsApp and there were different
kinds of other secondary activities which were undertaken by the company for which
it was being hired.

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Table of Contents
Introduction...................................................................................................................3
Analysis of Outsourcing Concept.................................................................................3
Advantages and Disadvantages of Outsourcing..........................................................3
Advantages...............................................................................................................3
Disadvantages..........................................................................................................4
Role of Outsourcing in Global Context.........................................................................5
Conclusion....................................................................................................................6
References...................................................................................................................7

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Introduction
The assignment helps in examining the importance of the outsourcing concept
in the business environment. Strategic type of outsourcing is well-defined as process
of appealing the different kinds of services of the providers for managing the different
essential tasks which would otherwise be managed by the in-house personnel. In the
respective report, there will be analysis regarding the overview of outsourcing
aspect, role of the outsourcing in the global business environment as well as
analysis of the different advantages and disadvantages of outsourcing which can be
helpful in understanding the impact of the same on the different activities performed
in the business (Tjader et al. 2014).
Analysis of Outsourcing Concept
As commented by Su, Levina and Ross (2016), outsourcing is defined as the
business-related practice which assists in hiring a party which is outside the
organization for performing the different kinds of services as well as creating goods
which were performed in-house traditionally by the different employees of the
company as well as staffs. In addition, as opined by Su, Levina and Ross (2014),
outsourcing is considered to be the practice which is usually undertaken by the
different organizations as the measure of cutting the costs. Due to the same, it can
create huge impact on wide range of the jobs, which ranges from the customer
related support to the manufacturing to the back office related aspects as well.
Furthermore, as stated by Mithas, Tafti and Mitchell (2013), the outsourcing is
the referred to the strategy through which the different companies contract out the
various major functions to the efficient along with specialized service providers who
ultimately become one of the valued business-related partners. In some of the
cases, the outsourcing aspect involves proper transfer of the different employees
from the company to the outsourcing organization.

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Advantages and Disadvantages of Outsourcing
Advantages
As commented by Gunasekaran et al. (2015), with the implementation of
outsourcing, it has been helpful in improving focus on the core business activities.
Outsourcing can be freeing up the business to mainly focus on their strengths,
allowing the different staffs working in the company to concentrate on the main tasks
as well as the future strategy. In addition, as opined by Größler et al. (2013), through
outsourcing, it will be suitable for increasing the effectiveness as by choosing a
proper outsourcing organization which mainly specializes in process or the service
for the assistance as it will be suitable for them in achieving the productive, efficient
services which are of greater quality suitably.
Furthermore, as commented by Tjader et al. (2014), with the help of the
outsourcing, it will be suitable for the controlled costs as it will be helpful for the
companies to release the capital for the investment in the different areas of the
business. As outsourcing is one of the most appropriate aspects, through
outsourcing it will be providing access to the different capabilities as well as facilities
which are not accessible or affordable in nature.
Disadvantages
As commented by Tjader et al. (2014), outsourcing includes handing over the
direct control over the functions related to the business. However, in such scenario,
different kinds of risks can affect the growth of the company negatively. As
commented by Su, Levina and Ross (2016), there can be issues related to lack of
flexibility wherein contract could prove to be too rigid for accommodating the
changes. In addition, as opined by Tjader et al. (2014), there can be different kinds
of changes in management wherein the change at the outsourcing related company
can lead to friction which influences the efficiency of the company negatively.
Due to the outsourcing, there can be risk of losing the sensitive kind of data
which can negatively impact the company’s growth. As commented by Gunasekaran
et al. (2015), there can never be 100% of the time and attention to the single
organization and it can be resulting in delays as well as inaccuracies in the output
related to the work which has been commenced by the different employees working
in the companies. In addition, as commented by Tjader et al. (2014), there are

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various kinds of issues such as hidden costs as well as legal problems which may
rise if the outsourcing terms as well as conditions are not being identified in a clear
manner.
Role of Outsourcing in Global Context
As commented by Awino and Mutua (2014), with the implementation of
outsourcing in the business-related activities, it helps in saving time along with
money in a suitable manner. The major reason wherein it can be seen that the
different firms opt for the outsourcing of the different activities as it will be suitable for
the growth of the company and it enhances in providing the most qualified customer
service which will be beneficial in gaining competitive advantage in the market.
Through contracting the third-party providers, there can be inclusion of instant
access of the team of the highly qualified customer service which will be suitable for
generating high returns and it will be beneficial in growing in-house expertise for the
major tasks which can support the company thoroughly.
For instance- Google is one of the suitable examples which can be helpful in
understanding the aspect which is considered to be one of the companies which
pride themselves on taking proper care of their in-house culture along with the
different employees (Google.com 2019). One of the areas in which it has helped
Google in showcasing the different activities, wherein they have outsourced some of
the activities appropriately to AdWords as it is one of the top grossing products.
In addition, as commented by Dolgui and Proth (2013), outsourcing mainly
focus on the prime along with core activities of the business. The outsourcing helps
in backend the different tasks which can be done by the other companies which are
specialist in performing similar kind of activities. Moreover, as commented by Awino
and Mutua (2013), it eliminates the need for investing more on infrastructure as well
as further technologies. Through inclusion of the outsourcing, there will be two
different companies which can be suitable for sharing the risks as it will be beneficial
in understanding the core business activities and the other related activities which
can be performed by the other companies which are specialist in such kind of
activities.

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For instance- WhatsApp is one of the suitable examples which can be helpful
in understanding the concept of outsourcing. In the year 2012, WhatsApp was the
small kind of firm wherein there were 30 fulltime employees and there were 5 part
time employees, however later on, WhatsApp has grown as one of the most popular
chat applications in the entire world and it was being sold and outsourced to
Facebook two years later for $19 billion (Whatsapp.com 2019). In order to keep the
costs related to operations low, the company tried to outsourced the development to
the different developers in Russia and for a fraction, therefore, from the same, it can
be analyzed that it helped WhatsApp in keeping the different business activities
within themselves as the prime aspects, on the other hand, there are different kinds
of other activities were transferred to the other outsourcing company which was
suitable for the growth of the company in a proper manner.
Conclusion
Therefore, it can be concluded that outsourcing is one of the major practices
which can be followed by the different companies in a suitable manner wherein it
enables them in providing the faster and better services to the customers and it
enhances the growth. However, on the contrary, there are different disadvantages of
the outsourcing through which it can be costly and there can be loss of important
data which can affect the growth of the companies negatively. Therefore, it can be
inferred that the outsourcing should be used in an effective manner which can play a
vital role in growth of the companies.

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References
Awino, Z.B. and Mutua, J.M., 2014. Business process outsourcing strategy and
performance of Kenyan State Corporations. Journal of emerging trends in
economics and management sciences, 5(7), pp.37-43.
Dolgui, A. and Proth, J.M., 2013. Outsourcing: definitions and analysis. International
Journal of Production Research, 51(23-24), pp.6769-6777.
Google.com 2019 Google (online) Retrieved from https://www.google.com/
[Accessed on 14th August 2019]
Größler, A., Timenes Laugen, B., Arkader, R. and Fleury, A., 2013. Differences in
outsourcing strategies between firms in emerging and in developed
markets. International Journal of Operations & Production Management, 33(3),
pp.296-321.
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.
Mithas, S., Tafti, A. and Mitchell, W., 2013. How a firm's competitive environment
and digital strategic posture influence digital business strategy. MIS quarterly,
pp.511-536.
Nyangau, I.K., Mburu, D.K. and Ogollah, K., 2014. Effects of outsourcing strategy on
procurement performance among universities in Kenya. International Journal of
Economics, Commerce and Management, 2(11), pp.1-40.
Su, N., Levina, N. and Ross, J.W., 2016. The long-tail strategy of IT
outsourcing. MIT Sloan Management Review, 57(2), p.81.
Tjader, Y., May, J.H., Shang, J., Vargas, L.G. and Gao, N., 2014. Firm-level
outsourcing decision making: A balanced scorecard-based analytic network process
model. International Journal of Production Economics, 147, pp.614-623.
Whatsapp.com 2019 WhatsApp (online) Retrieved from https://www.whatsapp.com/
[Accessed on 14th August 2019]