Offshoring and Outsourcing

This research project investigates the benefits and risks of offshoring and outsourcing, using Marks and Spencer as a case study. It analyzes the impact of globalization on business practices, explores the advantages and disadvantages of offshoring and outsourcing for Marks and Spencer, and provides recommendations for minimizing negative outcomes. The project utilizes a qualitative research approach, including a questionnaire survey and thematic analysis, to gather and interpret data.

Research Project
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Table of Contents

TITLE:
“The benefits and the risks of offshoring and outsourcing.” A case on Marks and Spencer.
INTRODUCTION
Overview of Research
Globalisation is considered to be a process of creating integration among economies by
removing the cross border barriers with an aim to increase trade flow among countries. The
anticipation of globalisation proves to be boom for several companies which are trying to expand
their practices for increasing their profitability as well as market value among the customers
(Tate and Bals, 2017). Globalisation also promoted the practices of offshoring and outsourcing
in order to provide business an opportunity to standardize their operations as well as services.
This in turn also supported toward increasing the customer base as globalisation support an
organisation to avail the opportunity of hiring expertise for performing production related
activities in more effective and positive manner. For performing this investigation Marks and
Spencer will be considered which a larger multinational retailer that offer product or services
related with lifestyle and household need. By performing investigation over such a giant retailer
it would be easier to determine the benefit as well as challenges present within the offshoring and
outsourcing.
Background of Research
Globalisation is referring to interaction and integration of economies, people as well as
business by simplifying the cross border practices. This has brings up several opportunities in
front of business to expand their operations, bring up standardisation in practices, simplifying the
production process or increasing the productivity. For conducting investigation over this Marks
& Spencer is consider, a British multinational retailer which is headquartered in Westminster,
London. It offer variety of products such as high quality apparels, luxury food items and home
products. Marks & Spencer utilise the outsourcing practices in order to reduce its production cost
by maintain stores throughout the world. This brings up several benefit to the company as by this
it become able to improve productivity, increase unit of production, standardisation of
operations, achieving economies of scale (Graham and et. al., 2017). Despite of all these benefits
it also brings up several kinds of issues or risk factors such as lack in quality of product, not
1

fulfilment of customers demand, not proper interaction among company and production unit etc.
these all may affect business image as well as value in marketplace.
Rationale of Research
The main purpose of conducting investigation is to determine the benefits as well as risk
that offshoring and outsourcing functions provides to an organisation that help it in achieving
competitive edge. By performing investigation over this researcher would be able to enhance its
knowledge regarding the use of outsourcing and offshoring along with risk or benefits involve in
this practice. Despite of all this, investigation when get published may also be used for
academical purpose which support in enhancing the knowledge of students by studying over real
based examples. In addition to this, information presented within the investigation will be more
authenticated and reliable which can also be beneficial for Marks & Spencer as it provide
information regarding several risk company may face so that proper strategies can be formulated
for future practices (Rodríguez and Nieto, 2016).
Research Aim
“The benefits and the risks of offshoring and outsourcing of functions for an
organisation.” A case on Marks and Spencer.
Research Objectives
 To understand the concept of offshoring and outsourcing.
 To analyse the risks and benefits of offshoring and outsourcing for Marks and Spencer.
 To determine the importance of offshoring and outsourcing for Marks and Spencer.
 Recommend some ways through which negative outcome from offshoring and
outsourcing can be minimised.
Research Questions
 Do you understand about the concept of offshoring and outsourcing ?
 How the risks and benefits of offshoring and outsourcing affects Marks and Spencer?
 Why offshoring and outsourcing is important for Marks and Spencer?
 How the business can minimise the negative outcome of offshoring and outsourcing?
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Gantt Chart
It is referring to the graphical representation of number of activities that are involved
within a particular project or investigation in a more systematic manner along with time taken by
them to ensure smooth flow of operations on sequential and timely manner so that objectives can
get accomplished.
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LITERATURE REVIEW
Concept of offshoring and outsourcing
As per the views of Jonathan Webb, 2017, in current competitive marketplace the term
offshoring and outsourcing been a common phenomenon which contains its own positive and
negative impact over organisation productivity. In addition to this, the statement offshoring is
frequently connected with outsourcing as they require each other support. However, outsourcing
mention to the resettlement of occupation and procedure to extrinsic supply irrespective of
supply positioning, on the other hand offshoring signifies resettlement of line of work and
process to any overseas state without identifying whether the supplier is external or connected
with establishment (Dutta, Gwebu and Wang, 2017). Along with this, outsourcing may therefore
comprise transferring of job inside and between countries, while offshoring states only to global
relocations. The trends related to offshore outsourcing are growing over past decades with
entities ranging from multitude of industries that are enjoying the benefits at large aspects. Few
factors contributing towards the concept are cheaper labour costs, freedom to focus on core
business concerns, lack of professionals in particular business tasks and availability of educated
business specialists. For both, the ordinary disincentive is to decrease reimbursement of concern
by capitalise on existent comparative cost advantages peculiarly labour. In today's digital age,
many businesses have begun realising that offshoring and outsourcing can play a role in
accomplishing new level of competitiveness. Businesses that moves forward with the concept of
offshore addition with outsourcing, primarily reap benefits related to short term addition to long
term as these allows the managers to emphasise on strengthening business growth by taking off
activities including marketing addition to accounting without worrying about decline possibilities
in work quality (Peck, 2017). Likewise, these two concepts help Mark and Spencer to cut down
its costs as it enable them to leverage and collaborate with a team based in other geographical
location utilizing digital communication technology. Furthermore, whether it is long or short
term solution, outsourcing and offshoring help Mark and Spencer to stay globally competitive in
existing rapidly dynamic concern landscape. Apart from this, it alter them to analyze
contemporary or emergent trend of industry and founded on that make disciplinal course of
action in order to gain competitory benefit in an innovative or creative style.
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Risks and benefits of offshoring and outsourcing that affect Marks and Spencer
According to Gino Lisondra, 2019, Although the generalization and roles among
offshoring and outsourcing are related, the carrying into action or executing and its repercussions
towards economy are contrary. However, offshoring comprises setting up corporal structure in
some other location whereas in outsourcing, there is no requirement of corporal transferral of
possession as they only prefer legal instrument or delegating of services to some other function
that could be situated in other part or nation. Offshore and outsourcing generally provides huge
benefits to an entity in terms of lowering costs, attaining business expansion, exercising more
control, emphasising towards developing practices and lowering down the associated risks
(Smith, 2017). In addition to this, the foremost advantage which Mark and Spencer experience
with the implication of these two aspects are reduce the cost of company as it enable them to
optimal utilisation of resources for obtaining maximisation of profit in a better way. Further,
these terms provides benefits to the selected organisation through reduces operational costs,
improving productivity together with improving business flexibility to manage time horizon
differentials. Moreover, it assist company to enhance its productivity level as it empower Mark
and Spencer to create new competence and ability sets that influence them to imply as a
competitive advantage in order to survive among industry for longer period of time.
Additionally, it give business more flexibility in staffing, manpower management which aid
them to prevention costs and can also choice the best personnel to endeavor entire organisation
center function in an impressive or productive style (Kaur, Singh and Majumdar, 2019).
Furthermore, outsourcing and offshoring aspects impact negatively over Mark and Spencer
business operation as it influence them in terms of cultural or social differences, communication
problems, security issues and so on that may reduce establishment proficiency ratio. In addition,
various challenges related to offshore outsourcing comprises of risk of exposing information
along with data that are confidential, lack of customer involvement or engagement, calibration
and synchronisation. These terms also causes communication problems, social together with
cultural differences and various security issues. Along with this, implementing best strategic
decision and planning effectively may lead Mark and Spencer to adopt best position within
combative industry as well as help them to improve their overall performance in an productive
style within desired time period.
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As per the view point of Wiesmann and et. al., 2017, offshoring and outsourcing brings
up several benefit to an organisation such as it help in expanding the business the practices,
reduce the cost of the company in term of transportation and production etc. With the adoption of
Offshoring M&S get numerous of benefit such as it become able to enlarge its customers base
and also get a easier medium to expand its business practices in new market. These practices
directly affect the profitability of the company as it get increased with the increase in
productivity. On the other side, offshoring also brings certain risk like cultural adoption,
changes in customer demand etc. these risks have direct impact over the market value and
performance of Marks & Spence which may leads to negative publicity.
Offshoring and outsourcing importance to Marks and Spencer
As per the views of Pamela Leri, 2019, As the company develop or enrich in status of
their attribute and service diverseness, it get along ineluctable that they are centring much on
their enterprise affiliated core state. In emerging scenarios, Outsourcing with offshoring plays
important role of saving costs, managing risks, speeding up procedures related to embracing
innovative technologies, freeing internal resources as well as redirecting tasks or activities that
are more valuable, focusing towards management of distinct operations with activities in
effective manner. In addition, these concepts also increases operational performances, helps
businesses to deal with shortages of talented personnels at various organisational destinations
and results in setting plans for overcoming issues of seasonal workflows (Smith, 2017). In
context of Mark and Spencer, outsourcing and offshoring brings in a lot of flexibility and
financial problem which enhance firm's profit margin and brand image in an sensational or
productive style. Moreover, it assist establishment to examine all emerging or upcoming
challenges or threat and also help them in implementing foremost conclusion in order to adopt
sustainable profitableness ratio without any hindrances. Along with this, it empower Mark and
Spencer manager to analyse market situation as well as to make use of available platforms which
lead them to grow or enrich its potentiality to attain increased level of sales performance or
proficiency rate. Apart from this, it encourage firm to adopts modern or latest technologies and
novel ideas which help them to stand out on the ground of research and development.
Furthermore, with offshore and outsourcing, entities easily emphasis towards development
oriented operations, labour intensive functions, value adding tasks, leveraging procedures,
cultivating teams with strong bondings at another localities, aligning local operations that
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directly embeds with the business. However, with the application of outsourcing and offshoring
it improves its overall performance as well as help them to maintain an efficacious working
culture by rendering information in clarity or transparent way. Due to this, it said Mark and
Spencer to overcome over all conflicts or mismanagement of functional area as in order to
execute pre-determined goal or objective in an trenchant or prompt way in a desired time period
(Wiesmann and et. al., 2017). In addition to this, it help organisation to give best contribution
towards economic growth as it aid them to expand their market share or size in relation of
generating tremendous occupation possibility which enrich individual life standard in a better
manner. Henceforth, it has been evident that in order to survive in competing marketplace,
outsourcing and offshoring plays a vital role in enlarging its brand value as well as to obtain best
position within industry in an advanced and inventive mode.
As per the view point of Sobinska and Willcocks, 2016, offshoring and outsourcing
plays a crucial role within the growth and success of an organisation as it help in improving the
operational practices by making it easier availability of resources. In case of Marks & Spencer,
offshoring and outsourcing help it in reducing its manufacturing and marketing cost. This is
because a decade ago the major reason behind the loss M&S faces in the market is that it prefer
to manufacture its product or services in home country instead of host country for the quality
work . This make it more costly process as company is not gaining appropriate amount of profit
to cover operational and production cost. Hence, the offshoring and outsourcing proves to be
more beneficial for the company as with the help of adopting such activity Marks & Spencer
become able to reduce its production, transportation and marketing cost which in turn help in
reducing the overall cost of the company. This is the reason company maintain a customer base
of world wide business as it maintain its production house and retail outlets in different countries
for becoming more approachable to the customers.
Ways to minimise negative outcome from offshoring and outsourcing
In the views of Stephanie Overby, 2017, As outsourcing and offshoring are considered as
one of the integral elements for every organisation in order to obtain sustainable proficiency ratio
and also to cope up with all upcoming challenges or rivalry in an innovative and creative style.
Yet, it impact negatively over establishment functional area which directly influence its
potentiality in acquiring high level growth and ability to make decisions in order to gain
competitive advantage. Moreover, it has been noticed that the outsourcing send shivers down the
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spine of current manpower as it generate a sense of uncertainty and induces them to hunt for
several development opportunities. If an organisation wants to overcome from the impacts of
domain expertise that offshore and outsourcing has then they should find suitable technologies
that can help in implementing projects along with carefully quantifying as well as qualifying the
accomplishments. In addition, other impact is confidentiality as well as intellectual property, to
overcome the impact an organisation should opt information technology enterprise working in
compliances to multinational security standards that can dispel security concerns (Zalewski,
2018). Thus, in order to tackle with such issue Mark and Spencer should takes an initiatory to
provide different kinds of training or development program which help an individual to adopt
any business environment and can put full share towards an attainment of business goal or
objective in a better manner. Along with this, on a frequent basis Mark and Spencer should
makes an attempt to determine marketplace trend or customer demand or need and make
restorative course of action which led them to overcome over internal or external business
environment in an awful or cost-effective mode (Sobinska and Willcocks, 2016). Furthermore,
adoption of advanced technologies or novel ideas will generate increased of productivity as well
as help them to maximise its profit margin in a better style for extant within industry for longer
period of time. Moreover, to avoid any future legal complications, the contracting parties i.e.
Mark and Spencer must conform to the local legislations which enable them to enrich their
brand value as well as improve its general execution in an impressive or amentaceous mode
without any obstacles.
As per the view point of Robby Gupta, 2018, there are number of issues that basically
found by a business while they perform activities like offshoring and outsourcing. These includes
poor performance, delay in product delivery, inappropriate communication, incompatible
outsourcing partners, overestimation of saving cost etc. These all leads to negative influence over
the image as well as performance of employees. Hence, these issues must be rectified by Marks
& Spencer in order to maintain its market value among the eyes of customers and staying
competitive. In order to reduce the negative outcome of offshoring and outsourcing, M&S must
focuses toward smooth flow of communication to all the staff members that are involves ion
such practices. They must also work toward conducting periodical meeting between off-shore
and on-shore team to have a check over the planned and actual performance so required
improvement can be made. This analysis of planned and actual performance also support in
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determining the gap between cost estimation so that proper financial budget can be made for
reducing the chances of error.
RESEARCH METHODOLOGY
Research philosophy- There are two types of research philosophies which is
interpretivisim and positivism. Based on current study, interpretivisim philosophy will be use by
researcher because it will assist them by providing accurate amount of data. On the other hand,
positivism philosophy is not appropriate because it takes additional period of time of any of the
particular organisation. In the chosen study area interpretivisim philosophy has been
implemented by the researcher as it is effective in providing suitable guidance to the
investigation to gather valuable information via he opinion and views analysis of authors and
writers. Thus philosophy is mainly appropriate in developing theoretical framework.
Research approach
Inductive and deductive are regard two main kind of research approach which is used for
analysing impact of study. According to current study, inductive approach will be used because it
helps researcher by providing reliable and valid information. On the order side of a coin,
deductive formulation is not useful for study because it takes additional resources and does not
give actual result. Here, inductive research always begins with the process of observation
whereas it is concluded with hypothesis due to which chances of obtaining accurate results
increase as it is totally based on observation (Gurung and Prater, 2017).
Research Design: Under this concept, it is relating with those framework or method
which enable an investigator to combine several types of components in inquiry in a reasonable
or logical manner so that they can be able to provide best solution for research problem in an
accurate manner. However, most of research design is classified into several categories like
exploratory, descriptive and casual in order to get better outcome for improving the overall
performance of study. For this report, exploratory design has been considered as it enable a
researcher to define the problem or issue in a clear way with an innovative and valuable
information or data.
Data Source: This aspect signifies that collection of information or data from various
sources in order to make study more impressive and informative in a improved mode (Albertoni
and et. al., 2017). In addition to this, there are two types of data collection i.e. primary and
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secondary in which it contain unique set of purpose and roles. Hence, primary methods
comprises gathering information from first-hand that means direct interaction with respondents
on the other hand secondary collection encompasses with acquiring data from various second
hand sources like journals, magazine, newspaper, articles. However, in context of this research,
both the sources has been regraded i.e. gathered data through questionnaire and articles or
journals in order to render detail information with a clarity and transparent way (Johansson and
Olhager, 2018).
Sampling technique: It is a process or procedure in which an investigator select sample
size from the larger number of populations. Along with this there are several techniques through
which a researcher choose respondents that is probability and non- probability as well as each of
this is again sub divided into different kinds like cluster, random sampling, quota and so on in
order to enrich the quality of project . Henceforth, to complete this study, random sampling has
been utilised in which an investigator select respondents from the wider range of population for
obtaining accurate data without any chance of bias or unethical information (Patrucco, Scalera
and Luzzini, 2016).
Sample Size: To conduct this research, 30 respondents has been considered who contain
sufficient amount of information and are sensible about the conception of offshoring and
outsourcing. Due to this, it help an investigator to enhance the effectiveness of study.
Ethical issues: Under this factor, it is regarded as one of the crucial component to which
researcher puts their full contribution in order to gain high level of project without any obstacles.
In addition to this, while conducting this research, an investigator ensure that all information or
data collected by them should be unbiased and transparent in order to generate intense level of
satisfaction to targeted personnel. Moreover, the primal risk which researcher undergoes is that
loss of data because of information is gathered through electronic format (Kasemsap, 2016).
Research limitation: While conducting any of research, researcher do faces number of
problems such as time, lack of fund, improper behaviour of respondents and many more. All
these are major limitation which directly impacts on researcher while completion of each
activities of research. Along with this, time is considered as major limitation because topic
requires additional period of time. As a whole, proper time period will be needed to for
completion of investigation.
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DATA ANALYSIS AND INTERPRETATIONS
Data Analysis
Data analysis refers to the procedure through which data is collected in specified format,
so it is easy for researcher to provide proper justification and recommendation over outsourcing
and offshoring of functions. Thematic analysis is used to analyse information collected under
questionnaire. In this method, there is use of small themes which is provided under small themes
are prepared to understand it. With the help of these themes it is easy for reader to understand
what is asked in question of questionnaire while collecting primary information from 30
employees (Rost, 2016).
Q1. Do you have knowledge about importance of outsourcing and offshoring of functions for
an organization?
Yes
No
Q2. What are the resources which is required for outsourcing and offshoring of functions?
Financial resource
Personnel
Information
Q3. As per your view point does outsourcing support a company is enhancing its trade
practices?
Yes
No
Q 4 What are the benefits of performing operations through outsourcing and off sourcing of
functions at Marks and Spencer?
Reduced cost
Time saving
Uninterpreted workflow
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Q5. What is the major challenge faced by managers of Marks and Spencer while they
outsource or offshore functions?
Legal barriers
Long distance operations
financial issues
Q6. What is the role of offshoring and outsourcing for growth and development of Marks and
Spencer?
Cost effective
Perfection in quality of products
Less burden
More control
Q7. What are the reasons due to which managers of Marks and Spencer think about
outsourcing and offshoring of functions?
Increment in cost
Lack of competent staff
To maintain quality of services
Q8. Is there any impact on growth and development of Marks and Spencer with outsourcing
and offshoring of resources?
Yes
No
Can't say
Q9. What are the major components considered while offshoring and outsourcing of
resources?
Legal environment
Market conditions
Brand image of organization
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Q10. What are the ways through which negative results can be reduced while availing
services through outsourcing and offshoring of resources?
Maintaining good relations with external parties
Simplicity in working operations
Proper planning
Q11. What are the major forces that attract Marks and Spencer for offshoring and
outsourcing business practices?
Lowering company cost
Wide business reach
Quick delivery of services
Q12 As per your view point, what are the basic risk that Marks & Spencer have to face while
offshoring and outsourcing business practices?
Instability in operations
Lack of security and confidential
Difficulties in management
Q 13 According to you, does outsourcing of business operations support Marks & Spencer in
achieving economical growth?
Yes
No
Q14 Recommendations through which possibilities of negative outcome from offshoring and
outsourcing can be minimized.
13

Q1. Do you have knowledge about importance of outsourcing
and offshoring of functions for an organization?
Frequency
Yes 15
No 5
Q2. What are the resources which is required for outsourcing
and offshoring of functions?
Frequency
Financial resource 12
Personnel 5
Information 3
Q3. As per your view point does outsourcing support a company
is enhancing its trade practices?
Frequency
Yes 18
No 2
Q4. What are the benefits of performing operations through
outsourcing and off sourcing of functions at Marks and
Spencer?
Frequency
Reduced cost 10
Time saving 7
Uninterpreted workflow 3
Q5. What is the major challenge faced by managers of Marks
and Spencer while they outsource or offshore functions?
Frequency
Legal barriers 7
Long distance operations 3
financial issues 10
Q6. What is the importance of offshoring and outsourcing for Frequency
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Marks and Spencer?
Cost effective 9
Perfection in quality of products 3
Less burden 4
More control 4
Q7. What is the role of offshoring and outsourcing for growth
and development of Marks and Spencer?
Frequency
Increment in cost 9
Lack of competent staff 8
To maintain quality of services 3
Q8. Is there any impact on growth and development of Marks
and Spencer with outsourcing and offshoring of resources?
Frequency
Yes 10
No 7
Can't say 3
Q9. What are the major components considered while offshoring
and outsourcing of resources?
Frequency
Legal environment 9
Market conditions 6
Brand image of organization 5
Q10. What are the ways through which negative results can be
reduced while availing services through outsourcing and
offshoring of resources?
Frequency
Maintaining good relations with external parties 7
Simplicity in working operations 9
Proper planning 4
15

Q11. What are the major forces that attract Marks and Spencer
for offshoring and outsourcing business practices?
Frequency
Lowering company cost 7
Wide business reach 4
Quick delivery of services 9
Q12 As per your view point, what are the basic risk that Marks
& Spencer have to face while offshoring and outsourcing
business practices?
Frequency
Instability in operations 6
Lack of security and confidential 9
Difficulties in management 5
Q 13 According to you, does outsourcing of business operations
support Marks & Spencer in achieving economical growth?
Frequency
Yes 17
No 3
Q14. Recommendations through which possibilities of negative
outcome from offshoring and outsourcing can be minimized.
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Data Interpretation
Theme 1: Importance of outsourcing and offshoring of functions for an organization
Q1. Do you have knowledge about importance of outsourcing and
offshoring of functions for an organization?
Frequency
Yes 15
No 5
Interpretation- From the above graph, it is clear that majority of employees i.e. 15 have
knowledge about outsourcing and offshoring of functions. They are employees who take active
participation in official meetings, so they have knowledge about its importance as well. While
remaining 5 candidates does not have knowledge about it. So there is requirement of awareness
among individuals through which they are able to get knowledge about it.
17
Yes No
0
2
4
6
8
10
12
14
16 15
5
Frequency

Theme 2: Resources which is required for outsourcing and offshoring of functions
Q2. What are the resources which is required for outsourcing and
offshoring of functions?
Frequency
Financial resource 12
Personnel 5
Data and Information 3
Interpretation- There is requirement of some resources through which outsourcing and
offshoring of resources is possible such as financial resources, employees, etc. with the help of
which outsourcing and offshoring is possible. According to view of 12 employees financial
resources is crucial and relevant because this is the base through which business operation can be
performed in systematic and synchronise manner. 5 employees says employees are important
because they perform actions with their intelligence and technical knowledge. Remaining 3
candidates says that data and information are important because this creates base for selecting
best option which is available in market. So it is interpreted from above shown graph that main
18
Financial resource Personnel Data and Information
0
2
4
6
8
10
12
12
5
3
Frequency

and crucial resource is finance, if this is not available in market, then there is mis balance in
performing operations.
19

Theme 3: Outsourcing support a company is enhancing its trade practices
Q3. As per your view point does outsourcing support a company
is enhancing its trade practices?
Frequency
Yes 18
No 2
20
Yes No
0
2
4
6
8
10
12
14
16
18
18
2
Frequency

Interpretation:- As per the above mentioned information it can be interpret that 18 out of
20 respondents said yes over the fact that outsourcing help in enhancing trade practices while 2
said no to this. From the evaluation it has been found that majority of people are agreed over this
statement because outsourcing help in reducing eth cost of company and enhance its delivering
services.
Theme 4: Benefits of performing operations through outsourcing and off sourcing of
functions at Marks and Spencer
Q4. What are the benefits of performing operations through
outsourcing and off sourcing of functions at Marks and Spencer?
Frequency
Reduced cost 10
Time saving 7
Uninterpreted workflow 3
21

Interpretation- There are different benefits which marks and Spencer will achieve with
use of outsourcing and offshoring of functions such as reduction in cost, good quality services or
product, etc. 10 employees says that with the help of outsourcing and offshoring of functions
cost gets educed. 7 candidates says it saves time and provide products to consumers within
estimated time. Remaining 3 individuals have view that it ease in dealing with uninterpreted
work load through which exiting employees are also satisfied. Hence it is interpreted that if
organisation is using function through offshoring or outsourcing assist in reducing cost and saves
time by providing up to the mark products.
22
Reduced cost Time saving Uninterpreted workflow
0
1
2
3
4
5
6
7
8
9
10
10
7
3
Frequency

Theme 5: Major challenge faced by managers of Marks and Spencer while they outsource or
offshore functions
Q5. What is the major challenge faced by managers of Marks and
Spencer while they outsource or offshore functions?
Frequency
Legal barriers 7
Long distance operations 3
financial issues 10
Interpretation- It is not easy for Marks and Spencer to face major issues which arise
while implementing functions with it. According to 7 employees there are different legal barriers
such as rules regulations for relocating business, 3 individuals have view that long distance
operations might get affected. But remaining 10 employees favours that financial issues might
arise in this operations because there is requirement of resources which can be purchased with
financial aspects. So it is clear that managers of Marks and Spencer might face major issue in
arising funds which is crucial for smooth running of business.
23
Legal barriers Long distance operations financial issues
0
1
2
3
4
5
6
7
8
9
10
7
3
10
Frequency

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Theme 6: Importance of offshoring and outsourcing for Marks and Spencer
Q6. What is the role of offshoring and outsourcing for growth and
development of Marks and Spencer?
Frequency
Cost effective 9
Perfection in quality of products 3
Less burden 4
More control 4
Interpretation- The offshoring and outsourcing practices brings up several benefits to
Marks & Spencer. On this 9 people said that it is cost effective, 3 said that it brings perfection in
product quality, 4 said it less down burden and 4 said it brings more control. So it is clear from
the investigation that majority of people believes that offshoring and outsourcing proves to be
cost effective practice for Marks and Spencer as it help in reducing the transportation cost which
is required to gather raw material at one place.
25
Cost effective
Perfection in quality of products
Less burden
More control
0
1
2
3
4
5
6
7
8
9
9
3
4 4
Frequency

Theme 7: Reasons due to which managers of Marks and Spencer think about outsourcing
and offshoring of functions
Q7. What are the reasons due to which managers of Marks and
Spencer think about outsourcing and offshoring of functions?
Frequency
Increment in cost 9
Lack of competent staff 8
To maintain quality of services 3
Interpretation- As per the information collected above it has been found that 9 out 20
respondents said that increase in cost is the main reason for which Marks & Spencer must think
about offshoring and outsourcing. But on the other side 8 respondents said that lack of competent
staff is the reason behind adopting offshoring and outsourcing. Despite of these 3 respondents
said that for maintaining the quality of services outsourcing and offshoring practices adopted by
Marks & Spencer as it help in getting access to high skilled people as well as advanced
technologies.
26
Increment in cost
Lack of competent staff
To maintain quality of services
0
1
2
3
4
5
6
7
8
9
9
8
3 Frequency

Theme 8: Impact on growth and development of Marks and Spencer with outsourcing and
offshoring of resources
Q8. Is there any impact on growth and development of Marks and
Spencer with outsourcing and offshoring of resources?
Frequency
Yes 10
No 7
Can't say 3
Interpretation- According to 10 candidates there is growth of Marks and Spencer when
they are availing services from offshoring and outsourcing of functions. 7 individuals says no
there is no possibilities of growth because these are used to maintain quality and cost for
consumers. Remaining 3 candidates says have no views about it. Hence it is clear that there is
growth of Marks and Spencer because when quality and cost is up to the mark, then growth
prospects for organisation is more because consumer want best product at lower cost.
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Yes No Can't say
0
1
2
3
4
5
6
7
8
9
10
10
7
3
Frequency

Theme 9: Major factors which has to be considered while offshoring and outsourcing of
resources
Q9. What are the major components considered while offshoring and
outsourcing of resources?
Frequency
Legal environment 9
Market conditions 6
Brand image of organization 5
Interpretation- There are some factors which has to be considered by managers of Marks
and Spencer for successful outsourcing and offshoring of functions such as rules and regulations,
market conditions, etc. which has to be considered. As per view of 9 employees, legal
environment is major factor which has to be considered, 6 candidates says market conditions
have to be analysed, so business operations re performed in specified manner. 5 individuals focus
on brand image or goodwill of association from where managers of Marks and Spencer are
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Legal environment
Market conditions
Brand image of organization
0
1
2
3
4
5
6
7
8
9
9
6
5
Frequency

thinking to avail functions. So it is interpreted that major and crucial factor is legal policies
which has to be considered for smooth running of business.
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Theme 10: Ways through which negative results can be reduced while availing services
through outsourcing and offshoring of resources
Q10. What are the ways through which negative results can be
reduced while availing services through outsourcing and offshoring
of resources?
Frequency
Maintaining good relations with external parties 7
Simplicity in working operations 9
Proper planning 4
Interpretation- While implementing outsourcing and offshoring, Marks and Spencer can
face some issues, so managers have to plan proper strategies through which they can deal with it.
According to 7 candidates Marks and Spencer must maintain positive relations with outsiders
through which they can retain in organisation for longer time. 9 employees favours that there
must be simplicity in working operations of association, remaining 4 candidates says there must
be proper planning. So it is interpreted that managers must require proper planning and
simplicity is required in working operations.
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Maintaining good relations with external parties
Simplicity in working operations
Proper planning
0
1
2
3
4
5
6
7
8
9
7
9
4
Frequency

Theme 11: The major forces that attract Marks and Spencer for offshoring and outsourcing
business practices
Q11. What are the major forces that attract Marks and Spencer
for offshoring and outsourcing business practices?
Frequency
Lowering company cost 7
Wide business reach 4
Quick delivery of services 9
31
Lowering company cost
Wide business reach
Quick delivery of services
0
1
2
3
4
5
6
7
8
9
7
4
9
Frequency

Interpretation- Out of total 20 respondents, there are 7 respondents who thinks that lower
company cost is the reason for offshoring and outsourcing business practices where as 4
respondents thinks that wider business reach is main reason behind offshoring. The remaining 9
respondents thinks that Quick delivery of services is the main reason behind offshoring because
it will be beneficial for customers to access their product in a quick manner.
Theme 12: The basic risk that Marks & Spencer have to face while offshoring and
outsourcing business practices
Q12 As per your view point, what are the basic risk that Marks
& Spencer have to face while offshoring and outsourcing
business practices?
Frequency
Instability in operations 6
Lack of security and confidential 9
Difficulties in management 5
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Interpretation- During offshoring and outsourcing, it has been found that there are 6
respondents who thinks that instability in operations will be the major issue which organisation
will have to face where as 9 respondent have the view that lack of security and confidential
major problem which organisation might face because if any of the information will leak then
company might have to suffer. Whereas remaining 5 respondent thinks that their will be
difficulties in management.
Theme 13: Outsourcing of business operations support Marks & Spencer in achieving
economical growth
Q 13 According to you, does outsourcing of business operations
support Marks & Spencer in achieving economical growth?
Frequency
Yes 17
No 3
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Instability in operations
Lack of security and confidential
Difficulties in management
0
1
2
3
4
5
6
7
8
9
6
9
5
Frequency

Interpretation- From total 20 respondent, there are 17 of them who thinks that business
outsourcing will help Marks & Spencer in achieving the economic growth because outsourcing
will help them to lower down the burden of business by which overall productivity will
automatically increase. The remaining 3 respondents thinks that there will be no economic
growth from business outsourcing.
34
Yes No
0
2
4
6
8
10
12
14
16
18 17
3
Frequency

RESEARCH OUTCOME
Covered in PPT
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Globalization also promoted the practices of offshoring and outsourcing in order to provide
business an opportunity to standardize their operations as well as services. This in turn also
supported toward increasing the customer base as globalisation support an organisation to avail
the opportunity of hiring expertise for performing production related activities in more effective
and positive manner.
36

Research methods: In regard of this report, data are gathered from accurate source which enable
researcher to gain reliable information. Moreover, qualitative data has been considered for this
project which help investigator to acquire in depth understanding about topic that help them to
develop authentic report within marketplace.
37

In this method, there is use of small themes which is provided under small themes are prepared
to understand it. With the help of these themes it is easy for reader to understand what is asked in
question of questionnaire while collecting primary information from 20 employees.
Interpretation- From the above graph, it is clear that majority of employees i.e. 15 have
knowledge about outsourcing and offshoring of functions. They are employees who take active
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participation in official meetings, so they have knowledge about its importance as well. While
remaining 5 candidates does not have knowledge about it. So there is requirement of awareness
among individuals through which they are able to get knowledge about it.
Interpretation- There is requirement of some resources through which outsourcing and
offshoring of resources is possible such as financial resources, employees, etc. with the help of
which outsourcing, and offshoring is possible. According to view of 12 employees’ financial
resources is crucial and relevant because this is the base through which business operation can be
performed in systematic and synchronise manner. 5 employees says employees are important
because they perform actions with their intelligence and technical knowledge. Remaining 3
candidates says that data and information are important because this creates base for selecting
best option which is available in market. So it is interpreted from above shown graph that main
and crucial resource is finance, if this is not available in market, then there is mis balance in
performing operations.
39

Interpretation- There are different benefits which marks, and Spencer will achieve with use of
outsourcing and offshoring of functions such as reduction in cost, good quality services or
product, etc. 10 employees says that with the help of outsourcing and offshoring of functions
cost gets educed. 7 candidates says it saves time and provide products to consumers within
estimated time. Remaining 3 individuals have view that it ease in dealing with uninterpreted
workload through which exiting employees are also satisfied. Hence it is interpreted that if
organisation is using function through offshoring or outsourcing assist in reducing cost and saves
time by providing up to the mark products.
40

Interpretation- It is not easy for Marks and Spencer to face major issues which arise while
implementing functions with it. According to 7 employees there are different legal barriers such
as rules regulations for relocating business, 3 individuals have view that long distance operations
might get affected. But remaining 10 employees’ favours that financial issues might arise in this
operation because there is requirement of resources which can be purchased with financial
aspects. So it is clear that managers of Marks and Spencer might face major issue in arising
funds which is crucial for smooth running of business.
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42

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REFLECTION & RECOMMENDATION FOR ALTERNATIVE
RESEARCH METHODOLOGY
Reflection
From this investigation, I am able to learn about influence of availing services from outer
sources while globalisation. If in near future, I prefer to enlarge my business at global level, then
through which I came to understand about pros and cons of offshoring and outsourcing. I am
able to achieve objectives and enhance my knowledge about it. I am able to improve may
interpersonal skills because have communicate with teammates and employees for conducting
investigation. I improve my team building and leading skills through which I can perform my
investigation in better and effective manner. With conducting this investigation, I am able to
learn about offshoring and outsourcing of services. This makes me understood about changes
which are taking place in industry. Research methods which are used in this investigation are
effective for achieving objectives because with using questionnaire as primary information, it is
easy for me to understand about offshoring and outsourcing of functions and its importance. If in
future, I will expand business operations at global level, then it is easy for me to expand in
organisation.
But there is issue in managing time for completing investigation because there is
confusion among teammates in performing activities. There is problem in collection of primary
information because respondents does not revert back through questionnaire. With the help of
secondary information, I get to now about complete information. This is relevant in making
decision while conducting business operations. I am able to gain knowledge about importance of
market analysis and planning in offshoring and outsourcing of functions.
Recommendations
There are some recommendations through which it is easy for mangers of Marks and
Spencer can accept outsourcing and offshoring of functions for improving their quality of
product and services and maintain cost. Some recommendations are as under-
There must be proper planning through which it is easy for managers to understand where
business have to be relocated. This assist in maintaining some cost which assist in maintaining
profits of Marks and Spencer.
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There must be hiring of legal expert who have knowledge about complete legal laws and
regulations with the help of which there is synchronise in operations and possibilities of getting
success is more. When some operations are allotted to external parties, then it is crucial that it
must assigned to authentic parties.
If managers of Marks and Spencer are thinking to offshore business operations, then they
must select destination where resources are available at cheap rate and scope of retail business is
more.
Alternative methodology
If similar research is assigned to researcher, then they must prefer to use secondary
sources of information as alternative methodology. This is the appropriate manner for conducting
investigation over complex topic in order to get in- depth knowledge about it. This is the easiest
way to collect information because primary data is time consuming and also remains costly.
Despite of this, within the current research project questionnaire is used in order to gather
the information from larger number of people in less possible time. The main reason behind
selecting this method is that the time provided for the investigation was very limited but in future
when I again get a chance to work over such topic. Then I will try to conduct more deep
investigation by using interview as an alternative method of investigation. The interview is
consider to eb most effective method of performing investigation as it will allow the researcher
to conduct an face to face interaction with the respondent and ask questions accordingly to gather
information. This process help in avoiding the chances of error or any kind of wrong information
to be presented within investigation which support in making it more reliable and authenticated.
Therefore, for the future perspective my preference to alternative method would be interview
instead of questionnaire.
CONCLUSION
From the above discussion, it is clear that internationalisation of organisation and its
commercial activities is possible with outsourcing and offshoring of functions because this
makes ease in maintaining quality and reduce cost of production. There is requirement of proper
planning in regarding to resources through which business expansion is possible. Organisation
growth is possible because this creates base for providing satisfactory services to consumers
because they are getting best quality services at nominal price. But when business operation are
45

expanded, then there is requirement of knowledge about financial aspects, legal rules and
regulations, etc. so positive outcome can be achieved. With the help of outsourcing and
offshoring of functions, there is time saving and cost effective for organisation through which
organisation can run business in long run. There is requirement of complete information about
market through which business operations can be performed smoothly and objectives can be
achieved. There are some legal laws and regulations which has to be considered such as
registration act, taxes, etc. which is important concept because this makes business operations
authentic and relevant.
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