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Outsourcing Business Functions: A Case Study of Hewlett Company, Australia

   

Added on  2021-06-17

16 Pages3234 Words179 Views
Outsourcing 1Advantages and Disadvantages of Outsourcing Business Functions: A Case Study of HewlettCompany, Australia.by Course: Tutor: University:Department: Date:

Outsourcing 2Table of Contents1.INTRODUCTION..............................................................................................................32.PROJECT OBJECTIVE.....................................................................................................33.PROJECT SCOPE..............................................................................................................34.LITERTAURE REVIEW...................................................................................................45.RESEARCH QUESTIONS................................................................................................65.1 Primary Question..............................................................................................................65.2 Secondary Questions........................................................................................................66.RESEARCH DESIGN AND METHODOLOGY..............................................................76.1 Qualitative Research.........................................................................................................76.2 Quantitative Research.......................................................................................................76.3 Validity and Reliability....................................................................................................86.4 Research Limitations........................................................................................................86.5 Time Schedule..................................................................................................................87.CONCLUSION.................................................................................................................10Reference..................................................................................................................................11Appendices...............................................................................................................................12Appendix 1: Questionnaire...................................................................................................12

Outsourcing 31.INTRODUCTIONGlobalization has made it easy that companies do not have to manufacture everything forthemselves. Outsourcing is one of the most appropriate mechanisms enabling firms toconcentrate on that which they are well equipped to do. According to Oshri, Kotlarsky, andWillcocks (2015) outsourcing has been recognized as a typical corporate managementstrategy. Multiple studies have considered outsourcing as one of the most effective workforcemanagement strategies in gaining competitive advantage (Liu, Guo, and Lee, 2011; Namkungand Jang, 2008). Arya, Mittendorf, and Sappington (2008) contend that outsourcing is themost used concept in most of the firms. However, most of some industries are still notconfident about value perception of outsourcing. Furthermore, outsourcing in Australia is stillis still limited to small-medium size enterprises. Nonetheless, outsourcing has been attributedto operations’ cost reduction, the efficiency of operations, risk sharing, and increasedcompetitiveness. This research seeks to analyze the advantages and disadvantages ofoutsourcing business activities in Australia using Hewlett as a case study.2.PROJECT OBJECTIVEThe objective of this study is to examine the advantages and disadvantages of outsourcingbusiness functions with Hewlett as a case study. 3.PROJECT SCOPEThis paper will analyze the advantages and disadvantages of outsourcing. The variousreasons for outsourcing will be discussed, and the possible threats of outsourcing businessactivities will as well be assessed. The outsourced business operations of Hewlett will beevaluated, and any associated benefits and dis-benefits pointed out. This paper will alsorecommend strategies for effective outsourcing to Hewlett Company.

Outsourcing 44.LITERTAURE REVIEWOshri, Kotlarsky, and Willcocks (2015) opine that outsourcing is a mechanism by whichorganizations share their responsibilities with third-party agents. The third party takes fullresponsibility for the outsourced functions. Organizations generally outsource specificbusiness functions to improve efficiency. Additionally, outsourcing allows the company tofocus more on its internal operations and to minimize costs of business operations. HewlettCompany outsources some of its functions to third parties for efficiency and effectiveness.Organizations outsource business functions to attain competitive advantage. This happens insituations that the companies do not have the resources to invest in improving the quality ofservice or product to meet the standards of the market. Outsourcing also reduces the overallcost of business operations such as employee remunerations, production costs among others.Developed countries often outsource their functions to developing countries by establishingbranches there to take advantage of the available cheap labor. Hewlett has adoptedoutsourcing as a means of attaining cost benefits in the competitive market (Vining andGloberman, 2017). An organization can also outsource its functions to concentrate andimprove on key internal operations. Hewlett Company seeks to become innovative in its key operations and therefore outsourcessome of the business activities. Chou, Techatassanasoontorn and Hung (2015) observe theHewlett produces the hardware parts and then information is sent to the outsourced parties.Hewlett can improve service quality and achieve better customer satisfaction. Worthington(2015) elucidates that firms outsource business activities that require specific specializationskills. However, it is crucial that the organization should have employees that are skilledconcerning the outsourced functions to benchmark the performance of the third party. Insteadof training the employees concerning the emerging technology, companies prefer tooutsource activities to third-party companies that can efficiently perform the tasks. This

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