Outsourcing in Organizations: Advantages and Disadvantages - A Case Study of IBM

Assignment 2
Student Name
Institute Name

Contents
Introduction................................................................................................................................4
Project objective.........................................................................................................................4
Project scope..............................................................................................................................4
Literature review........................................................................................................................5
Justification................................................................................................................................6
Research question.......................................................................................................................7
Primary research questions.....................................................................................................7
Secondary research questions.................................................................................................7
Research design and methodology.............................................................................................7
Qualitative research................................................................................................................7
Quantitative research..............................................................................................................7
Sample size.............................................................................................................................8
Sampling.................................................................................................................................8
Variables.................................................................................................................................8
Data collection........................................................................................................................8
Data analysis...........................................................................................................................9
Expected outcomes/conclusion..............................................................................................9
Reliability and validity...........................................................................................................9
Research limitation...............................................................................................................10
Time plan.................................................................................................................................10

Reference..................................................................................................................................11
Introduction
The process of outsourcing these days considered as most common operation where
contacting out business activities and procedure to third party companies. Th advantages of
outsourcing can be major and it covers elements like cost saving and effectiveness of gains to
major competitive gains. On the contrary, there is loss of control over many outsourced
activities is usually a potential or major business challenge. One must focus closely on the
benefits and drawbacks of outsourcing before determining to contact out any operation or
business activity (Alwasel et al., 2017).
Project objective
The main focus is on the whole discussion where one can analyse where the objectives is to
aim on the gain and drawbacks of outsourcing associated to company like IBM. The function
of outsourcing of the operations takes place, one has to see that there are main benefits and
drawbacks associated with it (Clark and Urwin, 2017). As a part of literature review, the
report will aim on concept of outsourcing and its role in organization.
Project scope
The concept of outsourcing is based on allocating a particular business function to a specialist
external service organization. There are times, when a company cannot deal with all features
of business procedure internally. In addition, some procedure is temporary as well as the
company never intend to recruit in-house professionals to work in tasks (Falkenbach et al.,
2016). When any function is outsourced to other companies, one must take accountability of
carrying out the functions and also maintaining the assets of the company. But, before
outsourcing any elements of the business to a third-party vendor, it is important to gain clarity

on benefits and drawbacks of outsourcing. At the same time, the process of outsourcing
shows a range of advantages of the company, it can also pose challenges if not rightly
outsourced to the right kind of service providers.
Literature review
Advantages
There are number of factors associated why any organization may opt for outsourcing a
specific task, job or a procedure. For instance, some of identified advantages of outsourcing
consist of many benefits discussed below:
1. Improved level of attention on core business functions: the concept of outsourcing can
free up of the organization to pay attention on its current strengths, permitting the
workforce to focus on the main tasks as well as on the upcoming strategy (Modibbo et
al., 2018).
2. Increased level of effectiveness: the process of outsourcing can free up the business
that is specialize in the procedure or service that want them to carry out for
organizations can assist companies to accomplish a highly productive, effective
service, usually of higher quality.
3. Highly controlled costs: cost saving can be accomplished by outsourcing function that
can assist people in releasing capital for purposes of investment in other activities of
the business.
4. Increase in overall reach: the function of outsourcing can provide high access to
capacities and facilities otherwise not affordable as well as accessible.
5. Great competitive gain: the process of outsourcing can assist people leverage skills or
knowledge along with finished supply chain.