Offshoring and Outsourcing Research

This project explores the impact of offshoring and outsourcing on Kingfisher plc's business operations. It analyzes the benefits and risks associated with these practices, providing recommendations for mitigating risks and enhancing global business growth.

UNIT 11.
RESEARCH
PROJECT

TITLE
“An in-depth research is been conducted on identifying risk and benefits of offshoring
and outsourcing on business activities”. The chosen firm is Kingfisher plc on which research is
been operated.
INTRODUCTION
Overview and background of research:
There are two different concepts known as offshoring and outsourcing that gives an
addition route to the enterprise in respect of the expansion of their business activities. Offshoring
means getting work completed in a various nation (Caniato and et. al., 2015). Outsourcing
introduces to contracting work out to external enterprise. For this project, kingfisher plc is
chosen multinational retailing organisation. The firm was founded by Andy Cosslett, in 1982
They have headquarters in London, England, United Kingdom. Company mainly specialise in
marketing and selling of home improvement products such as home appliances, home
furnishings etc. Along with this, company decide to expand their business operations in many
other nations. For this, outsourcing and offshoring are considering two essential type of business
practice which will help an enterprise in expansion of its business operation. Both type of
business practices have different benefits and risks which will directly influence on business
operations and success of kingfisher plc.
Research aim:
Main intent behind conducting this research is “To identify risk and benefits of
outsourcing and offshoring on business activities. The research is conducted on Kingfisher plc” .
Research Objectives:
 To collect information and understand about concept of Outsourcing and offshoring .
 To analyse the important benefits of outsourcing and offshoring in context of Kingfisher
Plc.
 To assess the undertaken risks of offshoring and outsourcing which have influence on
business activities of Kingfisher Plc. Provide suggestion through which Kingfisher Plc could easily improve their business
activities at overseas market.
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Research questions:
 To analyse the benefits of outsourcing and offshoring in regards with Kingfisher Plc.?
 To analyse the risks associated with offshoring and outsourcing on operating business
activities in Kingfisher Plc.? What are the different pathways through which Kingfisher Plc could expand business
activities at international market?
Significance and rationale of research
The given research has its importance for those researchers and scholars that are more
interested in terms of carrying out their investigation on the given topic such as to identify
drawbacks and advantages of outsourcing and offshoring upon business activities of kingfisher
plc. While conducting research methodology, it would be helpful for an investigator to grab
information’s about outsourcing and offshoring that are directly linked with operating business.
Support an investigator by enhancing its knowledge about the concept of offshoring and
outsourcing in context of business (Deftereos, 2016). It will also assist them in making changes
in literature review quality, information’s analysis ability and gathering information skills. Such
techniques are considered best ability which might help a researcher to perform research task in
appropriate manner. In given study, the main problem is relating to the maximising amount of
competition in the retail sector because of the presence of activity like globalisation. In order to
overcoming this issue, kingfisher plc need to conduct an investigation which will help in proper
identification about essential significance of outsourcing and offshoring practice.
LITERATURE REVIEW
A literature review refers as an effective and explicit method which will be applied by
researcher and scholar to identifying accurate information regarding the topic. Main purpose of
of literature review is to explore gaps in previous study and fulfil each objectives of research in
systematic manner (Graham and et. al., 2017).
The concept offshoring and Outsourcing
According to the Surbhi S, 2010, Offshoring and outsourcing are two different concepts
which provides an extra route to the organisation in respect of the expansion of their business
activities. Both these methods and techniques have their own way of contribution in globalisation
of business along with the different benefits which are associated with these methods. The
separate description of both these methods for clear understanding of their contribution in
2

development of businesses is presented below: According to the Jonathan Webb, 2017, this is the
concept which includes relocation of business process from one nation to another. The process
which is basically transferred includes manufacturing, supporting, accounting etc. The basic
reason behind the dissemination of business process is lower labour cost and favourable
economic conditions. The example from which we can understand the process is about that a one
UK based organisation have production of their goods in Mexico. As per the opinion of Jeffrey
Glen, 2018, This is the practice which is used by the organisation to expand their business
activities. This will includes the process where one organisation hire outside party to perform
their services and create goods which was basically performed by the organisation employees in
past. The basic and main advantage behind the acceptance of this method is about cutting of cost
of their operation and improve profit margin. According to the Aley Brown, 2009, there are
separate benefits which are associated with both methods and gathered by the organisation in the
situation of availing it for their expansion of business at global level. The different kinds of
benefits which are associated with these methods in respect of Kingfisher Plc are defined below:
According to the Peter Hammon, 2016, One of the benefit which can be gathered by Kingfisher
Plc while using the method of offshoring for globalisation is about reduction of the cost of most
expensive part which is about Labour. This will provides an opportunity to the business
organisation to re-invest their funds in business activities to grab any other opportunity present in
market. This is the main benefit which is associated with the application of this method is about
control because there is no involvement of any third party in the process of relocation of business
process. This will allows an organisation to retain their control and provide direction along with
training to their staff which leads to accountability in the internal process of the company.
According to the Gino Lisondra, 2019,Outsourcing is the process of hiring of external party for
completion of their work. This will allows an organisation like Kingfisher Plc to get complete
their work with the help of skilled labour which provide more quality in their products and
services. Outsourcing of work by Kingfisher Plc from the nation like India where time zone is
different provides an opportunity to operate their function 24 hours and provide maximum
satisfaction to their consumers. Acording to the Simone Seth, 2010, offshoring and outsourcing
are refers as a two type of business practice which will help an enterprise in expansion of
business operations at international level. Outsourcing introduces to an enterprise contracting
work out to a third organisation. On the other hand, offshoring introduces to getting work or task
3

completed in a various nations, mainly to leverage cost advantages. There are some risks of
offshoring and outsourcing on business operations and development of kingfisher plc which are
determined as under:
Cultural risk: This type of risk mainly introduced with differing work ethics, varying
communication protocols, cultural norms and language difference. Kingfisher plc may be
vulnerable to various kind of ethics linked with information sharing. As this risk will also effect
on business success and its operations in negative manner.
Operations risk: Kingfisher plc face the drawbacks of sub-par level service quality,
business interruptions, cost or overruns. Compliance risk and information security risks are often
included under operational risk. As this type of risk negatively impact on business operations and
success.
Hidden costs: According to Gigi Kizhakkechethipuzha, 2015, outsourcing is famed for
cost-effectiveness, hidden or obscure costs may stem in the development time period. These
costs mainly develop from unanticipated variations that demand some fast adjustments. Along
with this, hidden cost will also impact on growth and success of kingfisher plc at global level.
Different ways through which Kingfisher Plc can easily enhance their business operations at
global level.
There are different ways which will help kingfisher plc in enhancement of its business
operations at international level.
Market development: According to the Annmarie Hanlon, 2018, market development
introduces as an effective strategy for kingfisher plc to improve their business operations by
promoting existing product in new market. Along with this, use of online channels, kingfisher
plc can sell their products into new marketplace at low cost. As it will help an enterprise by
increasing customer base and maximising its sale within given time duration.
Product development: It is also introduces as an effective strategy which will support an
organisation in improvement of its business operations at global level. With the help of this
strategy, kingfisher plc introduce new product in existing marketplace. There are different ways
through which company can easily enhance their operations with the help of product
development such as cheaper manufacture, review packaging, improve quality, ask customers
4

and influencers for feedback etc. All these are effective ways which will help company in its
growth and success.
Adoption of modern promotional techniques: As per the view point of Shreyasi Gose,
2018, there are different types of modern promotional techniques such as social media
marketing, Email marketing, internet ads, product placement etc. All these are essential and
useful for kingfisher plc to promote their products and attract large number of customers within
given time duration. It will also support an enterprise to improve their operations and accomplish
long term goals within given time duration.
RESEARCH METHODOLOGY
Research methodology refers as a useful process which is applied by researcher in order
to gather appropriate and relevant data regarding the current study (Gylling and et. al., 2015). In
this section, various number of research methods will be included which are explained as under:
Research Philosophy: Interpretivisim philosophy is most essential will be applied in this
report. As this philosophy will assist an investigator in evaluating information effectively and
systematically which will further outputs in arriving at the accurate conclusion (Kaur, Singh and
Majumdar, 2018). Positivism is another research philosophy which will not appropriate for
researcher while carrying out of investigation systematically.
Research Approach: Deductive and inductive are two essential approach of research
which will be effective for researcher while accumulation of in-depth and accurate information
about the current research. According to this project, inductive approach is used because it helps
them by giving quality and relevant data (Liang and et. al., 2016). On the other side, deductive
approach is not useful for this project because it require data in form of numbers. There are
different reasons for selecting inductive approach for current study. It includes, more realistic,
helps in future inquiries, concrete and synthetic, related to time and place, more accurate,
dynamic method, valuable to government, complimentary etc. All these are biggest reasons for
choosing inductive approach. Along with this, inductive approach is also useful and valuable for
researcher by providing data in form of qualitative and also helps them by driving valid
conclusion.
5

Data collection: Primary and secondary are introduces two types of data collection
methods which will be applied by researcher. As it will help them to gather proper information
regarding the benefits and drawbacks of offshoring and outsourcing business practice on
operations of kingfisher plc. Questionnaire introduces as an effective source of primary research
which will help an investigator by providing reliable data about the study (Mihalache and
Mihalache, 2016). On the other side, books, magazines, journals etc. are identify best sources for
accumulating secondary data regarding the current study.
Time Horizon: Gantt chart refers as an effective tool for researcher to use this technique
and find out starting and ending time duration for completion of research activities (Modarress,
Ansari and Thies, 2016). In this chart, different activities have been included which are
determined as under:
6

Data analysis: For this report which is on identifying the advantages and disadvantage of
offshoring and outsourcing on business operations of kingfisher plc, information will be analysed
by the investigator by following quantitative technique thematic analysis. In this case, different
number of themes will be developed on each questions (Musteen, 2016). As it will support
researcher to minutely analysis response from the respondents. Along with this, thematic analyse
will also use for this project. As it will help a researcher to perform each activities of
investigation in systematic and effective manner.
Sampling: Probability and non-probability are introduces as a two type of sampling
method. For this project, probability sampling will be used because it helps an investigator by
saving its cost, time and resources (Oshri, Kotlarsky and Willcocks, 2015). With the assist of this
sampling, 50 employees of kingfisher plc have been recruited. On the other side, non-probability
sampling is not useful for this study because it require more time of an organisation. Probability
sampling provides better chance to the investigator to develop a sample that is really
representative of the population. This method is fit according to the current study because it will
support an investigator to select sample of the population on random basis. This method also
support an investigator to choose select out of total population.
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Research limitation: While accumulating the information for the current investigation,
accessibility introduces one of the main issues for researcher. As it will impact on researcher
while doing investigation in proper manner (Patrucco, Scalera and Luzzini, 2016). Along with
this, there are some other issues which are faced by investigator such as time, cost, inaccurate
behaviour of respondents etc. All these are major issues which will effect on researcher while
performing research activities in systemic manner.
DATA ANALYSIS AND INTERPRETATIONS
Questionnaire
Q1) Are you have knowledge about the concept offshoring and Outsourcing?
a) Yes
b) No
Q2) According to you, outsourcing and offshoring are main parts of globalisation?
a) Yes
b) No
Q3) What are the main reason of Kingfisher Plc for globalising their business operations?
a) Improved quality of management
b) Reduction in business cost
b) Law of comparative advantage
Q4) Explain about the benefits of offshoring in context of Kingfisher Plc.?
a) Close Collaboration
b) Favourable government Policies
c) Business Growth
Q5) What are the advantages of outsourcing on business operations of Kingfisher Plc?
a) Reduce cost of operations
b) Increase flexibility
c) Improves productivity
Q6) Different risks of offshoring on business operations of Kingfisher Plc.?
a) Culture-Barrier
b) Lack of Technological Advancement and Skills
c) Legal Problems
8

d) Lack of Proper Work Dissemination
Q7) What are the drawbacks of outsourcing on business success and growth of an organisation
at international level?
a) Cultural and social Differences
b) Security issues
c) Communication problems
Q8) How to reduce risks of offshoring on business operations of Kingfisher Plc?
a) Adoption of training programme
b) Implementation of new technology
c) Tie up with legal agency
d) Adoption of Flat business structure
Q9) What are the ways by which risk of outsourcing on business operations of an organisation
can be overcome by Kingfisher Plc?
a) Adoption of common ethics and moral policies
b) Appointment of legal hirers
c) Usage of reliable written communication methods
Q10) Different ways through which Kingfisher Plc can easily enhance their business operations
at global level?
a) Market development
b) Product development
c) Adoption of modern promotional techniques
Q11) As per your opinion, what type of business practices important for Kingfisher Plc while
globalising their business operations?
a) Outsourcing
b) Offshoring
Q12) Does outsourcing helps Kingfisher Plc in achievement of competitive advantages?
a) Yes
b) No
Q13) What are the factors require by Kingfisher Plc while globalising their business through
outsourcing?
a) Skilled workforce
9

b) Sufficient time
c) Accurate amount of capital
Q14) Does Kingfisher Plc found issues regarding cultural difference while outsourcing its
business operations?
a) Yes
b) No
Q15) Provide any recommendation for further improvement in business growth of Kingfisher
Plc at international level?
Q1) Are you have knowledge about the concept offshoring and
Outsourcing?
Frequency
a) Yes 40
b) No 10
Q2) According to you, outsourcing and offshoring are main parts of
globalisation?
Frequency
a) Yes 35
b) No 15
Q3) What are the main reason of Kingfisher Plc for globalising their
business operations?
Frequency
a) Improved quality of management 15
b) Reduction in business cost 16
c) Law of comparative advantage 19
Q4) Explain about the benefits of offshoring in context of Kingfisher
Plc.?
Frequency
a) Close Collaboration 20
b) Favourable government Policies 16
c) Business Growth 14
10

Q5) What are the advantages of outsourcing on business operations of
Kingfisher Plc?
Frequency
a) Reduce cost of operations 19
b) Increase flexibility 17
c) Improves productivity 14
Q6) Different risks of offshoring on business operations of Kingfisher
Plc.?
Frequency
a) Culture-Barrier 15
b) Lack of Technological Advancement and Skills 10
c) Legal Problems 14
d) Lack of Proper Work Dissemination 11
Q7) What are the drawbacks of outsourcing on business success and
growth of an organisation at international level?
Frequency
a) Cultural and social Differences 20
b) Security issues 14
c) Communication problems 16
Q8) How to reduce risks of offshoring on business operations of
Kingfisher Plc?
Frequency
a) Adoption of training programme 15
b) Implementation of new technology 10
c) Tie up with legal agency 14
d) Adoption of Flat business structure 11
Q9) What are the ways by which risk of outsourcing on business
operations of an organisation can be overcome by Kingfisher Plc?
Frequency
a) Adoption of common ethics and moral policies 20
b) Appointment of legal hirers 14
11

c) Usage of reliable written communication methods 16
Q10) Different ways through which Kingfisher Plc can easily enhance
their business operations at global level?
Frequency
a) Market development 18
b) Product development 19
c) Adoption of modern promotional techniques 13
Q11) As per your opinion, what type of business practice is important
for Kingfisher Plc while globalising their business operations?
Frequency
a) Outsourcing 30
b) Offshoring 20
Q12) Does outsourcing helps Kingfisher Plc in achievement of competitive
advantages?
Frequency
a) Yes 40
b) No 10
Q13) What are the factors require by Kingfisher Plc while globalising their
business through outsourcing?
Frequency
a) Skilled workforce 19
b) Sufficient time 14
c) Accurate amount of capital 17
Q14) Does Kingfisher Plc found issues regarding cultural difference while
outsourcing its business operations?
Frequency
a) Yes 35
b) No 15
Theme 1: Knowledge about the concept offshoring and Outsourcing
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Q1) Are you have knowledge about the concept offshoring and
Outsourcing?
Frequency
a) Yes 40
b) No 10
a) Yes b) No
0
5
10
15
20
25
30
35
40
40
10
Frequency
Interpretation: This chart has been interpreted knowledge regards with phenomena of
offshoring and outsourcing business practice among employees of kingfisher Plc. 40 out of 50
respondents of an organisation have accurate idea about the meaning of offshoring as well as
outsourcing business practice. On the other side, remaining 10 workers of kingfisher plc not have
any opinion about the phenomena of outsourcing and offshoring.
Theme 2: Main parts of globalisation
Q2) According to you, outsourcing and offshoring are main parts of
globalisation?
Frequency
a) Yes 35
b) No 15
13

a) Yes b) No
0
5
10
15
20
25
30
35
35
15 Frequency
Interpretation: This graph has been determined main parts of globalisation which are
outsourcing and offshoring. This statement is agreed by 35 out of 50 respondents. Remaining 15
respondents are not favour according to the same concept.
Theme 3: Main reason for globalising business
Q3) What are the main reason of Kingfisher Plc for globalising their
business operations?
Frequency
a) Improved quality of management 15
b) Reduction in business cost 16
c) Law of comparative advantage 19
14

a) Improved quality of management
b) Reduction in business cost
c) Law of comparative advantage
0
2
4
6
8
10
12
14
16
18
20
15 16
19
Frequency
Interpretation: Above mentioned table has been concluded main reason of an
organisation for globalising their business operations. 15 out of 50 respondents have idea as
globalisation assist an organisation by improving quality of management. 16 respondents have
knowledge as it will support an enterprise by reducing business or operation cost. Remaining 19
employees have opinion as law of comparative advantage is main reason for an organisation to
globalise their business systematically.
Theme 4: Benefits of offshoring
Q4) Explain about the benefits of offshoring in context of Kingfisher
Plc.?
Frequency
a) Close Collaboration 20
b) Favourable government Policies 16
c) Business Growth 14
15

a) Close Collaboration
b) Favourable government Policies
c) Business Growth
0
2
4
6
8
10
12
14
16
18
20
20
16
14
Frequency
Interpretation: From the above stated chart, it is summarised advantages of offshoring
business practice on operations of business within the organisation. 20 out of 50 employees of
kingfisher plc have knowledge as offshoring help in close collaboration with another country. 16
respondents have opinion as there is favourable government Policies which will help kingfisher
plc in its success and growth worldwide. Remaining 14 participants have knowledge as through
offshoring, kingfisher plc is able to increase their growth and development internationally.
Theme 5: Advantages of outsourcing
Q5) What are the advantages of outsourcing on business operations of
Kingfisher Plc?
Frequency
a) Reduce cost of operations 19
b) Increase flexibility 17
c) Improves productivity 14
16

a) Reduce cost of operations
b) Increase flexibility
c) Improves productivity
0
2
4
6
8
10
12
14
16
18
20
19
17
14
Frequency
Interpretation: This data has been concluded benefits of outsourcing on business trading
operations and success of kingfisher plc. 19 out of 50 workers of kingfisher plc have idea as
outsourcing helps the company an organisation by overcoming its operations from cost. 17
workers have opinion as, with the help of outsourcing, company can easily increase flexibility
and accomplish competitive advantages. Remaining 14 respondents have to say as through
outsourcing business practice; kingfisher plc can improve their productivity and profitability
ratio within given time duration.
Theme 6: Risks of offshoring
Q6) Different risks of offshoring on business operations of Kingfisher
Plc.?
Frequency
a) Culture-Barrier 15
b) Lack of Technological Advancement and Skills 10
c) Legal Problems 14
d) Lack of Proper Work Dissemination 11
17

0
4
8
12
16
15
10
14
11
Frequency
Interpretation: Above mentioned chart have been determined drawbacks of offshoring
business practice on kingfisher's business operations. 15 out of 50 employees of kingfisher plc
have opinion as cultural barrier is main risk of outsourcing that influence on their operations of
business. 10 respondents think that lack of technological advancement and skill is major
drawback which will effect on business success. 14 workers of an enterprises have proper
understanding about legal problem is major disadvantage of offshoring which will impact on
kingfisher while surviving in global level. Remaining 11 respondents have view as lack of
correct work diffusion is major issue of offshoring in regards with kingfisher plc.
Theme 7 : Drawbacks of outsourcing
Q7) What are the drawbacks of outsourcing on business success and
growth of an organisation at international level?
Frequency
a) Cultural and social Differences 20
b) Security issues 14
c) Communication problems 16
18

a) Cultural and social Differences
b) Security issues
c) Communication problems
0
2
4
6
8
10
12
14
16
18
20
20
14
16
Frequency
Interpretation: It has been concluded risk of outsourcing on an organisation and its
operations at global level. 20 out of 50 respondents have opinion as cultural and social
differences are major drawback of outsourcing which will impact on overall growth of kingfisher
plc. 14 employees of kingfisher plc have idea as security is appropriate issue and remaining 16
respondents’ things that communication is main barrier of outsourcing enterprise practice. As all
of them huge problems of outsourcing which will directly effect on the success of business and
development at global level.
Theme 8: Ways to reduce risks of offshoring
Q8) How to reduce risks of offshoring on business operations of
Kingfisher Plc?
Frequency
a) Adoption of training programme 15
b) Implementation of new technology 10
c) Tie up with legal agency 14
d) Adoption of Flat business structure 11
19

a) Adoption of training programme
b) Implementation of new technology
c) Tie up with legal agency
d) Adoption of Flat business structure
0
2
4
6
8
10
12
14
16
15
10
14
11
Frequency
Interpretation: This graph has been summarised ways to overcome drawbacks of
offshoring on business operations. 15 respondents have idea to gain better knowledge of training
programme is most significant mode for kingfisher plc to reduce risk of cultural differences. 10
employees of company have opinion as implementation of new technology is most essential
aspect for overcoming impact of lack of technological advancement and skills. 14 out of 50
respondents have knowledge as Tie up with legal agency will help kingfisher plc by overcoming
effect of Legal Problems. Remaining 11 respondents have idea adoption of flat business structure
will also assist enterprises by reducing issues of communication.
Theme 9: Ways to reduce risks of outsourcing
Q9) What are the ways by which risk of outsourcing on business
operations of an organisation can be overcome by Kingfisher Plc?
Frequency
a) Adoption of common ethics and moral policies 20
b) Appointment of legal hirers 14
c) Usage of reliable written communication methods 16
20

0
4
8
12
16
20
20
14 16
Frequency
Interpretation: This graph or data has been concluded ways to overcome drawbacks of
outsourcing on an organisation. 20 out of 50 respondents have idea to acquire common ethics
and moral policies will help in overcoming issue of cultural and social differences. 14
respondents have idea as appointment of legal hirers is most significant way for overcoming
impact of security issues. Remaining 16 workers have idea as usage of reliable written
communication methods will support kingfisher plc to reduce communication problems and
attain better results within the specific time frame.
Theme 10: Ways to enhance business operations at global level
Q10) Different ways through which Kingfisher Plc can easily enhance
their business operations at global level?
Frequency
a) Market development 18
b) Product development 19
c) Adoption of modern promotional techniques 13
21

a) Market development
b) Product development
c) Adoption of modern promotional techniques
0
2
4
6
8
10
12
14
16
18
20 18 19
13
Frequency
Interpretation: It has been determined effective ways for kingfisher plc in enhancement
of business operations globally. 18 employees of kingfisher plc have opinion as the development
of market is most efficacious way with in the enterprises to improve business operations
systematically. 19 respondents have knowledge as product development is essential way whereas
remaining 13 workers have idea as adoption of modern promotional technique is useful. Thus, all
these are useful ways which will help to enterprises in betterment of its enterprise operations and
growth across the world.
Theme 11: Useful type of business practice
Q11) As per your opinion, what type of business practice is important
for Kingfisher Plc while globalising their business operations?
Frequency
a) Outsourcing 30
b) Offshoring 20
22

a) Outsourcing b) Offshoring
0
5
10
15
20
25
30
30
20
Frequency
Interpretation: This chart has been interpreted types of business practices which will be
more essential for kingfisher while globalisation of its business operations. 30 employees of
kingfisher plc have view as outsourcing is most effective practice because it will support
enterprises in different ways such as reduction in cost of operations, Increment in flexibility and
improvement in productivity. Apart from this, 20 workers of kingfisher plc have idea as
offshoring is not much useful because there is some drawbacks of such practice including,
barrier of culture, skills and lack of technological furtherance and, Legal Problems and lack of
proper work dissemination.
Theme 12: Importance of outsourcing business practices
Q12) Does outsourcing helps Kingfisher Plc in achievement of competitive
advantages?
Frequency
a) Yes 40
b) No 10
23

a) Yes b) No
0
5
10
15
20
25
30
35
40
40
10
Frequency
Interpretation: This information has been explained importance of outsourcing business
practice for an organisation in achievement of competitive advantages. 40 out of 50 respondents
are agree whereas remaining 10 are not agree as per the same.
Theme 13: Requirements of different factors
Q13) What are the factors require by Kingfisher Plc while globalising their
business through outsourcing?
Frequency
a) Skilled workforce 19
b) Sufficient time 14
c) Accurate amount of capital 17
24

a) Skilled workforce
b) Sufficient time
c) Accurate amount of capital
0
2
4
6
8
10
12
14
16
18
20
19
14
17
Frequency
Interpretation: This graph has been communicated requirements of various factors for
company when they globalise their business operations through outsourcing. 19 respondents
have idea as skilled workforce is main factor. 14 employees have knowledge as sufficient time
period is required by company while globalising their business. Remaining 17 workers have
opinion as accurate amount of capital is major factor needed by company.
Theme 14: Issues regarding cultural difference
Q14) Does Kingfisher Plc found issues regarding cultural difference while
outsourcing its business operations?
Frequency
a) Yes 35
b) No 15
25

a) Yes b) No
0
5
10
15
20
25
30
35
35
15 Frequency
Interpretation: It has been concluded issues faced by Kingfisher plc regarding cultural
difference while outsourcing its business operations. 35 out of 50 respondents are said yes
whereas remaining 15 employees are not favour about the same. Thus cultural difference create
biggest issues within an organisation and also impact on its operations in negative manner.
26

RESEARCH OUTCOMES
Covered in PPT
Globalization refers to the process of integration and interaction among people, businesses and
governments worldwide. Under globalisation, global business environment is main area which
can be defined as the environment in various sovereign nations, with different external factors to
the home environment of company. It highly influence on decision making of an organisation
about resource's utilisation and capabilities (Apăvăloaie, 2014). The global business environment
includes political, social, economic, tax, regulatory cultural, technological and legal aspects. For
this research, chosen organisation is Tullow Oil Plc which is a multinational oil and gas
exploration company. It was founded by Dorothy Thompson in Tullow, Ireland with its
headquarters in United Kingdom. Along with this, global business environment has different
benefits and drawbacks on company's functions and operations by increasing market share,
27

reducing costs and become more competitive. It also has drawbacks for company including
international Laws and Regulations, Language and Culture etc. Thus, global business
environment has positive and negative impact on operations and functions of Tullow Oil Plc.
Interpretation: This chart has been interpreted knowledge regarding the phenomena of
offshoring and outsourcing business practice among employees of kingfisher Plc. 40 out of 50
respondents of an organisation have accurate idea about the meaning of offshoring as well as
outsourcing business practice. On the other side, remaining 10 workers of kingfisher plc not have
any opinion about the phenomena of outsourcing and offshoring.
Interpretation: From the above stated chart, it has been summarised advantages of offshoring
business practice on business operations of an organisation. 20 out of 50 employees of kingfisher
plc have knowledge as offshoring help in close collaboration with another country. 16
respondents have opinion as there is favourable government Policies which will help kingfisher
plc in its growth and success at international level. Remaining 14 participants have knowledge as
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through offshoring, kingfisher plc can easily enhance their growth and development at global
level.
Interpretation: This data has been concluded benefits of outsourcing on business operations and
success of kingfisher plc. 19 out of 50 workers of kingfisher plc have idea as outsourcing help an
organisation by reducing its cost of operations. 17 workers have opinion as, with the help of
outsourcing, company can easily increase flexibility and accomplish competitive advantages.
Remaining 14 respondents have to say as through outsourcing business practice, kingfisher plc
can improve their productivity and profitability ratio within given time duration.
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RECOMMENDATION
From the above given findings, it has been recommended offshoring and outsourcing are
consider two major parts of globalisation. It is used by an organisation to globalise their business
operations at global level. Different number of benefits and drawbacks of offshoring and
outsourcing business practices have been analysed by the researcher. As these were directly
impacted on business operations and growth of an organisation at global level. There are some
recommendation to the kingfisher plc about how to resolve negative impact of offshoring and
outsourcing business practice which are determine as under:
 There are various drawbacks of outsourcing such as cultural and social Differences,
security issues and communication problems. These are major issues which will impact
upon business operations. In order to solve these issues, Kingfisher Plc must focuses on
common ethics and moral policies, appointment of legal hirers, usage of reliable written
communication methods.
 In order to overcome negative impact of offshoring business practice, kingfisher place
must emphasis on training programme, implementation of new technology, tie up with
legal agency and adoption of Flat business structure. All these are most essential ways for
overcoming negative impact of culture-Barrier, lack of Technological advancement and
Skills, legal Problems and lack of Proper Work Dissemination.
 There is another one recommendation to Kingfisher plc. about how to improve their
business operations at international level. Company must develop new product and adopt
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advanced technology. As these are effective ways for an organisation to achieve
competitive benefits easily.
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REFLECTION & RECOMMENDATION FOR ALTERNATIVE
RESEARCH METHODOLOGY
Reflection: I am happy to get this possibility in order to perform study all over like a
broad subject that is an investigation depends upon the overall risk factor and benefits from
outsourcing and offshoring functions and operations of business in relation with Kingfisher plc.
This project report will assist me in raising my knowledge regarding the outsourcing and
offshoring phenomena in context of business. During the times of conducting this investigation, i
came to understand importance of offshoring and outsourcing for Kingfisher plc. Along with
this, I am able to enhance my literature, data analysis, data interpretation and management skill
through this research. Apart from this, throughout this study I have to face different challenges
which are mainly related with inaccurate amount of capital, insufficient time, improper
behaviour of respondents and many other ethical issues. There are some big issues which will
directly influence on mine while doing different activities on study in systematic manner. For
doing this study, I have applied questionnaire which is most effective instrument of primary
research. As this instrument help me by giving certain information in regards with the
effectiveness of outsourcing and offshoring business practice in context of an organisation.
P7 Consider alternative research methodologies and lessons learnt in view of the outcomes.
In order to conducting this research, different methods have been used such as primary
and secondary source of method of data collection, inductive approaches of research, Interpretive
research philosophy, quantitative and qualitative research etc. All these are effective methods by
which investigator can get support to get proper information in relation with appropriate study.
Along with this, for doing this research, questionnaire have been applied which help to
investigator for collecting reliable data about the project. Along with this, herein, research
methodology is another factor for conducting interview process. As it is also useful method
which will assist a researcher aside giving straight and valid data regarding the significance of
outsourcing and offshoring for an organisation at world-wide. Therefore, interview is most useful
and valuable alternative research methodology which assist an investigator to collect valid data
about the current topic or research.
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CONCLUSION
According to the above report, it is analysed that the importance of outsourcing and
offshoring for business entities while globalisation of its business operations. Different
advantages and disadvantage of outsourcing and offshoring have been explained that will
directly effect on organisation operation within an organisation. For this, 40 employees within
enterprises have accurate idea regarding the meaning and importance of outsourcing and
offshoring whereas remaining 10 workers not have any idea about the same. It consist various
kinds of risk in relation with outsourcing such as culture-Barrier, legal Problems, lack of proper
work dissemination, social and cultural variations, communication difficulty, security issues lack
of technological advancement and skills. All are difficult problems that will directly effect on
enterprise operations and success of enterprises. In order to overcome above risks of offshoring
and outsourcing some recommendation have been provided to the kingfisher plc which are
determined as under: adoption of training programme, implementation of new technology, Tie up
with legal agency, adoption of flat business structure, adoption of common ethics and moral
policies, appointment of legal hirers, usage of reliable written communication methods etc. All
these are most suitable and effective methods which will help enterprises in reduction of the risk
of offshoring and outsourcing on business concern within an enterprise.
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