The Impact of Outsourcing on Businesses

This assignment delves into the topic of outsourcing and its influence on businesses. It examines both the advantages and disadvantages of outsourcing various functions, emphasizing how it can impact organizational structure, cost management, and market competitiveness. The assignment also highlights the importance of business research in informing outsourcing decisions, including market analysis, customer feedback, and performance evaluation.

Course Reflection 1
COURSE REFLECTION
By Name
Course
Instructor
Institution
Location
Date

Course Reflection 2
Reflective Journal
1. Evaluate the effectiveness and your usefulness of the learning experience
This course has truly been eye-opening in my journey as a business student. In class this course
has given me a chance to explore and work through new business ideas and concepts and expand
my understanding of the business world. I continue to advance my learning through interchange
of professional ideas with both my peers and faculty. I have been able to participate fully in
pushing my learning experience to the maximum through a number of action-oriented activities
such as case studies and simulations. This in turn has helped me to build my critical thinking,
expand my knowledge and improve my thought process.
2. Explain how this learning process will be useful to you in future
During the course of my study Iacquired important knowledge in class especially concerning
business research into outsourcing.The competencies I have so far acquired give me belief that
am pursuing the right professional career and that I am getting properly equipped to respond to
real-world challenges once I graduate. Furthermore, I gained insight about important business
functions such as outsourcing where a company entrusts non-core business functions to external
parties. These vendors assume the responsibility of delivering agreed services to the principal for
a fee. Generally the activities or functions that are outsourced are those that the company feels
that they can be performed from an offshore point(Freytag & Clarke 2012).Most common
functions that companies outsource include processing payroll, inventory management and call
center services. I have come to appreciate the importance of this type of practice as well as the
probable risks that may arise. Some of the advantages associated with outsourcing include the
ability of the company to cut down on costs. I learnt some interesting scenario about how to take
advantage of geography in outsourcing. Companies are able to negotiate for provision of some

Course Reflection 3
functions at a much cheaper rate than if they were to undertake the function on their own(Freytag
& Clarke 2012).An endearing example that I can remember is where there is significant
difference in wages between say America and Asia. If a function can adequately be performed in
Asia, then it makes logical sense to have this function transferred to Asia at a much lower cost
but with same value addition.Outsourcing also bring the element of added efficiency since
outsourcing partners have years of experience undertaking such a function which in most cases is
their core function and specialty. By virtue of this specialization, outsourcing offers a variety of
skilled human resources that can satisfactorily address the function as may be required(Freytag
& Clarke 2012).The end product of all this is faster and more satisfying service delivery.
However much as outsourcing is good, I learnt during the fourth week that it can bring about
serious and negative impact if it is not handled appropriately. Top on the list is the possibility of
losing confidentiality of sensitive information to parties outside of the intended persons. There is
also a chance that an outsourcing partner delivers poor services especially if they do not have
prior experience handling such outsourced processes.
3. Describe objectively what happened in the learning process
I undertook a number of activities regarding business research. Essentially it entails a practical
study where a company or individual seeks to obtain important data relating to customer
experience, cost or a new product(Freytag & Clarke 2012).This information is then analyzed and
fine-tuned to help make management decisions. Business research may include consumer
feedback, analysis of the market competition or financial data. Business managers would then
use this information to better understand their business standing as well as know the position
such a business holds in the market and how to improve it.

Course Reflection 4
I decided to draw a list of questions which I used to collect data from a number of company
managers. I personally went to interview persons to gather relevant information about
outsourcing. I sent out by mail other questionnaires to firms that were distant. I also did online
research about past research findings and how these finds can influence the outcome of my
research.Additionally, I made telephone calls to certain firms with a view to getting their opinion
on a particular subject. I considered the appropriateness of the methodology to use in harvesting
data.
During this stage I decided on which quantitative techniques to use in analyzing the data I had
collected.I then came up with a sample that I believe was representative of the population. I have
learnt of the necessity to dig up the related literature of the business topic under research so that I
can get the historical perspective of the subject(Collis & Hussey 2013). This background
information then constituted further discussion in the report.
4. Evaluate what you learnt
The process of research offered me insight in various functional processes of a business
especially my research in outsourcing. Outsourcing is a common practice in most modern
organisations. I realized that businesses should undertake their own research to determine the
aspects of their functions and processes can be outsourced profitably.Any business worth its
name must conduct a research, however limited, to understand its target customers or simply
market trends. This helps the firm to strategically position itself in the market and take advantage
of opportunities that competitors may not be aware of(Collis & Hussey 2013). With insightful
information collected from the market, a business will be able to predict trends and avoid
possible problems in the future. Most importantly though is the fact that awareness of market
conditions is likely to guide informed decision-making which will ultimately achieve

Course Reflection 5
profitability- a key objective of almost all going concerns. Researching and outsourcing will help
companies to develop not only better products and services but also produce what is relevant to
customer’s ever-changing tastes at a cheaper rate. Through business research a manager can
analyze how individual department within the organization is performing(Collis & Hussey
2013). With proper projections, necessary adjustments can be made to determine which functions
can be outsourced profitably. There are various types of research that a business can undertake to
attain informed decision-making regarding outsourcing. This entails a business conducting
focused and periodic surveys in the market to establish market dynamics and responding
appropriately to those changing patterns in the market. Other researches may include performing
a budget variance analysis on a quarterly basis and comparing with projected overhead costs. All
in all, business research will help any business stay ahead of competition and also help
management make decisions that are consistent with the needs of target market. With limited
funds, a business can take a simple online survey which can yield quick yet easy-to-understand
data. Alternatively this function can be outsourced to companies that have a historical
understanding of business research (Collis & Hussey 2013).
5. Explain your learning process
The hypothesis for the research revolved around the effect of outsourcing on the organization.It
detailed the advantages and disadvantages of outsourcing. Upon further research it became
evident to me that outsourcing in departments of business is a very common practice. This
included human resource functions such as payroll. Generally, the companies that employed the
strategy of outsourcing seem to enjoy certain freedoms and can focus on key functions of their
business.

Course Reflection 6
6. Explain how this learning will be applied
The last week entailed focusing the skills gained in a work related environment. These skills I
have acquired are very important both to the company and also as an individual. They go a long
way in satisfying the requirements of my degree. As an individual I feel empowered to act
appropriately as a business student. I have developed further understanding of the various
functions that businesses undertake and how these functions can positively or adversely affect
the overall success of a business. I have also understood why business opts to outsourcefor non-
core functions and processes. On a personal level I can infuse this knowledge into administration
of our family business. For instance, I am in a position to conduct appropriate customer surveys
to gauge market dynamics By applying the skills I have acquired in my future work place and
profession I believe I will offer valuable solutions to the many problems that continue to bedevil
start-ups. This information is the kind that can make a great difference between a business
succeeding or suffering irreparable breakdown.
As a prospective chief executive of a multinational corporation, I believe I have added one vital
aspect of progressive management. This course has equipped me with the right knowledge to
understand outsourcing in its entirety. As a future leader I will ensure thorough understanding of
market dynamics through a properly developed outsourcing model before making any decisions
that are likely to affect the economic outlook of the company.

Course Reflection 7
Bibliography
Collis, J. and Hussey, R., 2013. Business research: A practical guide for undergraduate and
postgraduate students. Palgrave macmillan.
Freytag, P.V., Clarke, A.H. and Evald, M.R., 2012. Reconsidering outsourcing
solutions. European Management Journal, 30(2), pp.99-110.