Offshoring and Outsourcing Research

This research project investigates the benefits and risks of offshoring and outsourcing business operations, using Marks & Spencer as a case study. It analyzes the impact of these practices on a multinational company's success, exploring key benefits like cost reduction and access to skilled labor, alongside risks such as cultural barriers and data security. The project utilizes a qualitative research approach, analyzing data collected through questionnaires and literature review.

Research Project

TITLE
“To Investigate the benefits and risks of offshoring and outsourcing on business
operations of multinational company. A study on Marks and Spencer.
CHAPTER 1: INTRODUCTION
Overview of study
Globalisation introduces as the worldwide movement toward financial, trade, economic
and communication integration. Outsourcing and offshoring are consider as an effective part of
globalisation which will support an organisation in development of its business. Outsourcing
refers as the assignment of business operations to an external organisation. Offshoring introduces
as a relocation process of business in a different nation (Caniato and et. al., 2015). For this
report, M&S is a chosen multinational organisation that belongs with retail industry. The main
intention of conducting this report is to identify advantages and limitations of outsourcing and
offshoring on crucial operations of an organisation. This report will be cover different postitives
and negatives of outsourcing and offshoring.
Background of Marks and Spencer.
Marks & Spencer is a chosen British multinational retailer for this project. It was
established in 1884 by the Michael Marks, Thomas Spencer and headquartered in London,
United Kingdom. Company carries a special edge when it comes to promoting and delivering
quality oriented home products, food products and clothing. Company decide to expand their
business through offshoring and outsourcing. Both are effective practice and helps an
organisation in development of its business operations at new marketplace.
Research aim
Main purpose of this research is “To Investigate the benefits and risks of offshoring and
outsourcing on business operations of multinational company. A study on Marks and Spencer.
Research objectives
 To evaluate the concept of offshoring and outsourcing business of a company.
 To analyse the benefits and risks availed by M&S by offshoring and outsourcing its
business at international market.
 To determine if globalisation drive success to M&S in offshoring its business.
1

Research questions
 Explain the concept of offshoring and outsourcing business of a company.
 What are the benefits and risks availed by M&S by offshoring and outsourcing its
business at international market.
 How globalisation can drive success to M&S in offshoring its business.
Rationale of research
The intention of this investigation is to conduct an analysis the drawbacks and benefits of
offshoring and outsourcing business practices on operations of M&S. Another purpose for doing
this research is to helps an individual in personal and professional manner. In personal manner,
this researcher supports an investigator by improving its research ability i.e. literature review
skill, data collection and data interpretation skill (Flick, 2015). As these skills helps them while
collection of accurate data about the current study. In professional ways, this research assist them
by increasing their understanding regarding the effectiveness of outsourcing and offshoring as a
crucial segment of globalisation. This research also beneficial in academic manner by increasing
understanding about the offshoring and outsourcing among students.
2

CHAPTER 2: LITERATURE REVIEW
Introduction of Literature review
Literature Review is refers as the key aspect of an investigation work, thus it is the
fundamental aspect which is mainly considered by the researcher for the purpose of developing
an effective theoretical framework which assist the over all work in right manner (Green, Camilli
and Elmore, 2012). This section is mainly encompasses over gathering information from
different sources as in this area information accumulation is based on secondary sources i.e.
books, journals, published research articles, past investigation areas etc. In this proper analysis is
created over the area which focuses on benefits and challenges which are put forward by
offshoring and outsourcing on business operations of multinational company.
Main Body
The concept of offshoring and outsourcing business of a company.
As per the views expressed by Jonathan Webb, 2017, Offshoring and outsourcing are two
important and different aspects in the respect to business operations. Offshoring is mainly advert
as the movement of different functions and operation's of an enterprises to another country for
the reason of lower labour cost, favourable economic condition, wide market population etc. In
another words, offshoring is also refers as the procedure of relocating a business or an
organisational functions to another country in respect to gaining benefits by reducing labour cost
and an effective regulatory environment (What Is Offshoring? What Is Outsourcing? Are They
Different. 2017). Offshoring is an effective practice which is based on obtaining goods and
services from one place or relocating the procedure to another region or country for the reason of
attaining more benefits and advantages, therefore offshoring is mainly implemented by the
business for the reason of controlling cost, enhancing opportunities for businesses.
According to the opinion stated by Margaret Rouse, 2019, Outsourcing is refers as an
effective business practice in which organisations are concern over hiring another firm or an
individual to handle business operations, providing services, attempting business task that are
either previously done by the organisational workers or executed. Outsourcing is an effective
human resource practice which is practically implemented by the businesses as a cost cutting
measure. Outsourcing is also refers as a business contracting work out to a third party, thus it
mainly works as external organisation (Outsourcing. 2019). Outsourcing and offshoring both the
3

terms are effective in the context of providing opportunities to the businesses to attain higher
edge by cutting down extra cost. These two are implemented as the major aspect of human
resource and now it becomes the most integral part of a business to grow within commercial
market.
The benefits and risks availed by M&S by offshoring and outsourcing its business at
international market.
As per the opinion stated by Gino Lisondra, 2019, Offshoring and Outsourcing are two
different and widely considerable aspect of business, thus these two are significantly
implemented by the businesses for the purpose of attaining growth at global market. Marks and
Spencer as a paramount organisation which is concern over offshoring and outsourcing of their
business operations and for this the company has attained numerous benefits and also faces risk,
in which some are associated as under:
Benefits of Offshoring and outsourcing to Marks and Spencer:
Lower cost: This refers as the key benefit which is attained by Marks and Spencer
through outsourcing and Offshoring their business operations. The major reason of offshoring
and outsourcing is based on reducing the cost and boosting profit which in turns in developing
benefits for the firm in saving cost and attain growth (Gunasekaran and et. al., 2015).
Flexible business expansion: This is also another key benefit attain by business, thus
outsourcing and offshoring is mainly promotes global expansion as after implementation of
outsourcing and offshoring of the dealings of Marks and Spencer it is easy for the firm in
expanding the operations of business at vital level. Offshoring and outsourcing is also effective
in assisting the businesses in right way to expand globally and attain huge amount of benefit and
growth (Kumar, 2019).
Risk of offshoring and outsourcing to Marks and Spencer:
Exposing confidential data and information: The main risk associated with
offshoring and outsourcing is exposing of confidentiality. This is because, businesses are
required to share their confidential information with the third party that lead might be riskier for
company. This becomes drawback for company as the contractor or third party could misuse
provided information (Offshoring and outsourcing - advantages and disadvantages. 2019).
Lack of consumer focus and engagement: There are probable chances that third
party dealer or enterprise might be dealing with huge number of customers at a time. This
4

might create situation of ignoring customer demand and requirement. As a result, services
or products that are outsourced might be not satisfy customers in right manner. This
situation simply occurs due to lack of customers focus and engagement (Mackenzie, Tan,
Hoverman and Baldwin, 2012).
Globalisation drive success to M&S in offshoring its business.
As per the views presented by Mackey and Gass, 2015, globalisation is one of the
emerging topic that provides high range of profits to business association. This is because, the
term globalisation brings numerous of business opportunities for business entities which helps in
expanding their businesses at international marketplace in effective manner. Emerging trend of
globalisation also influences business organisation to offshore its business functions or activities
in another nations so that they could be completed on time in effective manner. This is basically
done for completing organisational activity within the provided time frame so that they could
gain competitive advantages at marketplace. For instance: Marks and Spencer often outsources
its tech jobs in different countries in order to save its costs (M&S outsources half of its tech jobs.
2019). This initiative of company of outsourcing its IT team is aiming to save around £30 per
year. This simply states that saving of cost directly leads to attainment of profitability as the
Marks and Spencer is securing some range of money every time. Along with this, it is also
assumed by the company that outsourcing will also raise speed of development and also make it
simpler which ultimately contributes in providing better experience to customers.
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CHAPTER 3: RESEARCH METHODOLOGY
Introduction of research methodology
Research methodology is considered as an effective procedure that is opted by
investigator for gathering appropriate information from various sources over the particular topic.
This section is an essential portion of investigation as it provides knowledge to readers that
which kind of research method is going to be used by them. It also provide knowledge on
different research objectives and questions and how information on this gathered, analysed and
evaluated. This section includes various sub sections that are described in the main body one
after another (McCusker and Gunaydin, 2015).
Main body
Research Approach
According to the current study, inductive approach has been opted to conduct this
investigation. Main reason behind selecting inductive approach in research as it is flexible and in
which investigator does not have to apply any pre-determined data. There are certain advantages
of inductive approach such as it assists in future inquiries and acts as a guide for future inquiries
(Gioia, Corley and Hamilton, 2013). Whereas, deductive approach in research is not considered
because it creates one-way communication which negatively influences on researcher while
collection of data from the selected population. Therefore, as compare to deductive approach,
inductive research is more concrete, accurate and realistic method. Inductive approach is
essential and valuable method for researcher to use and collect valid information regarding the
effectiveness of outsourcing and offshoring business practice of a Retailer. This method will also
assist an investigator to draw valid conclusion and gain better outcomes for current study.
Research Choice
There are essentially two choice of research for researcher that are qualitative and
quantitative. In this, quantitative research choice completely relies upon numerical and statistical
data gathered from various sources. On the other hand, qualitative research choice relies over
human perception, beliefs and knowledge. Both methods has their own importance in different
investigations. In the current study, researcher have used qualitative research as it will be
valuable in gathering relevant information from selected respondents. This will lead to
attainment of result in rightful manner (Miller and et. al., 2012) .
6

Sampling
Sampling refers to the effective method of choosing sample size from the overall
population. Sampling is done from different methods such as probabilistic and non probabilistic
strategy. These types are further classified into few sections that is stratified, judgemental
sampling, systematic and random sampling. In the current investigation, researcher have used
random sampling method for selecting sample size for current case. Random sampling method is
provides equivalent chance to all respondents to get selected. This ultimately supports them
choosing right sample size without any kind of bias activity. For current research 50 respondents
have been chosen by researcher through random sampling method (Mykhaylenko and et. al.,
2015).
Time Horizon
This is termed as an important tool that provides knowledge on the starting and ending
time of investigation activities. Usage of Gantt chart represents actual knowledge on required
time frame which is going to be consumed in the whole research (Oshri, Kotlarsky and
Willcocks, 2015).
7

Data Collection
Primary and secondary are introduces as a two crucial types of data collection method.
Questionnaire is consider as a part of primary method of data collection. It is utilised by
researcher for collecting primary information from the participant. On the other side, magazines,
books etc. are consider secondary source of data collection. As it will also used by researcher for
gathering secondary information from the respondents (Quinlan and et. al ., 2019).
Research instruments
Questionnaire
Q1) Are you aware about the concept of offshoring and outsourcing business of a company?
a) Yes
b) No
Q2) According to you, what are the more popular and useful options for international entry?
8

a) Exporting
b) Partnering
c) Greenfield venturing
d) Acquisition
Q3) What are the best options for outsourcing for M&S?
a) Professional Outsourcing
b) IT Outsourcing
c) Manufacturing Outsourcing
d) Project Outsourcing
Q4) What are the best options for offshoring for M&S?
a) Information technology outsourcing
b) Business process outsourcing
Q5) What are the benefits availed by M&S by offshoring its business at international market?
a) Low labor costs
b) Cheap availability of resources
c) Less government interference
Q6) What are the risks availed by M&S by offshoring its business at global level?
a) Cultural Barrier
b) Competitor risk
c) Poor communication
Q7) What are the strategies of managing risks of offshoring in M&S in global context?
a) Adoption of training programs
b) Set up marketing tools and techniques
c) Implementation of Flat communication
Q8) What are the advantages availed by M&S by outsourcing its business internationally?
a) Reduce operating cost
b) Improvement in quality
c) Focus on main business activities
d) Access to highly qualified skill pool.
Q9) What are challenges availed by M&S by outsourcing its business operations globally?
a) Unanticipated Costs
9

b) Communication Difficulties
c) Time Zone difference
Q10) What are the strategies or ways of managing risks of outsourcing in M&S at global level?
a) Proper planning
b) Utilisation of appropriate communication channels
c) Utilisation of technology
Q11) How globalisation can drive success to M&S in offshoring its business?
a) Improved information between different countries
b) Larger market
c) Coaching and training
Q12) As per your opinion, offshoring is best way for the success and growth of M&S?
a) Agree
b) Disagree
Q13) Is offshoring business practice beneficial for M&S in achievement of competitive
advantages at global level?
a) Yes
b) No
Q14) Recommend various ways through which M&S can easily maintain strong reputation at
global level.
Conclusion of research methodology
From the above described report, it can be concluded that research methodology is an
essential section. In this section qualitative research choice is employed by the investigator. Also,
both the primary and secondary method of data collection has been used by researcher for
gathering maximum information on the topic.
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CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
Data analysis or Frequency Table
Q1) Are you aware about the concept of offshoring and outsourcing business of a
company?
Frequency
a) Yes 40
b) No 10
Q2) According to you, what are the more popular and useful options for
international entry?
Frequency
a) Exporting 15
b) Partnering 10
c) Greenfield venturing 12
d) Acquisition 13
Q3) What are the best options for outsourcing for M&S? Frequency
a) Professional Outsourcing 10
b) IT Outsourcing 18
c) Manufacturing Outsourcing 9
d) Project Outsourcing 13
Q4) What are the best options for offshoring for M&S? Frequency
a) Information technology outsourcing 30
b) Business process outsourcing 20
Q5) What are the benefits availed by M&S by offshoring its business at
international market?
Frequency
a) Low labor costs 16
b) Cheap availability of resources 20
c) Less government interference 14
11

Q6) What are the risks availed by M&S by offshoring its business at global level? Frequency
a) Cultural Barrier 15
b) Competitor risk 17
c) Poor communication 18
Q7) What are the strategies of managing risks of offshoring in M&S in global
context?
Frequency
a) Adoption of training programs 15
b) Set up marketing tools and techniques 17
c) Implementation of Flat communication 18
Q8) What are the advantages availed by M&S by outsourcing its business
internationally?
Frequency
a) Reduce operating cost 13
b) Improvement in quality 15
c) Focus on main business activities 14
d) Access to highly qualified skill pool. 8
Q9) What are challenges availed by M&S by outsourcing its business operations
globally?
Frequency
a) Unanticipated Costs 16
b) Communication Difficulties 21
c) Time Zone difference 13
Q10) What are the strategies or ways of managing risks of outsourcing in M&S at
global level?
Frequency
a) Proper planning 16
b) Utilisation of appropriate communication channels 21
c) Utilisation of technology 13
12

Q11) How globalisation can drive success to M&S in offshoring its business? Frequency
a) Improved information between different countries 20
b) Larger market 16
c) Coaching and training 14
Q12) As per your opinion, offshoring is best way for the success and growth of
M&S?
Frequency
a) Agree 35
b) Disagree 15
Q13) Is offshoring business practice beneficial for M&S in achievement of
competitive advantages at global level?
Frequency
a) Yes 40
b) No 10
Data interpretation
Theme 1: Awareness about the phenomena of offshoring and outsourcing business of a
company
Q1) Are you aware about the concept of offshoring and outsourcing business of a
company?
Frequency
a) Yes 40
b) No 10
13

a) Yes b) No
0
5
10
15
20
25
30
35
40
40
10
Frequency
Interpretation: It has been interpreted awareness regarding the offshoring and
outsourcing of operations in chosen business of Marks & Spencer. 40 out of 50 respondents have
aware about the outsourcing and offshoring whereas left over 10 participants not have any idea
relating to the same. As majority of respondents have knowledge which will support an
organisation in development of its business internationally in successful manner.
Theme 2: Popular and useful options for international entry
Q2) According to you, what are the more popular and useful options for
international entry?
Frequency
a) Exporting 15
b) Partnering 10
c) Greenfield venturing 12
d) Acquisition 13
14

a) Exporting
b) Partnering
c) Greenfield venturing
d) Acquisition
0
2
4
6
8
10
12
14
16 15
10
12
13
Frequency
Interpretation: It has been described popular and effective options for international entry.
According to the 15 respondents, exporting is useful because it increase sales on an organisation.
10 respondent have view as partnering is more valuable entry mode because there is more capital
for M&S to expand their business. 12 participants have knowledge as greenfield venturing is
beneficial because there is high control over brand image and staffing. And remaining 13
participants have idea as acquisition is effective plan of action for M&S to enlarge their business
in another country.
Theme 3: Options for outsourcing
Q3) What are the best options for outsourcing for M&S? Frequency
a) Professional Outsourcing 10
b) IT Outsourcing 18
c) Manufacturing Outsourcing 9
d) Project Outsourcing 13
15

a) Professional Outsourcing
b) IT Outsourcing
c) Manufacturing Outsourcing
d) Project Outsourcing
0
2
4
6
8
10
12
14
16
18
10
18
9
13
Frequency
Interpretation: It has been determined best and suitable options for outsourcing for
M&S. 10 out of 50 respondents have opinion as professional outsourcing is effective. 18
participants have knowledge as information technology outsourcing is most appropriate. 9
employees believed as manufacturing outsourcing is valuable. And left 13 workers have opinion
as project outsourcing is more useful. Therefore, majority of respondents said IT outsourcing is
best way because it will helps them in development of its growth and success at international
level.
Theme 4: Options for offshoring
Q4) What are the best options for offshoring for M&S? Frequency
a) Information technology outsourcing 30
b) Business process outsourcing 20
16

a) Information technology outsourcing
b) Business process outsourcing
0
5
10
15
20
25
30
30
20
Frequency
Interpretation: This table has been concluded options for offshoring for Marks &
Spencer. 30 out of 50 respondents have opinion as information technology outsourcing is
important. As it will helps in enlarging operations of an multinational enterprise another country
with another organisation. It will also beneficial for a business to achieve success and growth
within given time period. Remaining 20 employees have idea as business process outsourcing is
more beneficial for M&S because it assist them in improving its business operations effectively.
Theme 5: Benefits of offshoring
Q5) What are the benefits availed by M&S by offshoring its business at
international market?
Frequency
a) Low labor costs 16
b) Cheap availability of resources 20
c) Less government interference 14
17

a) Low labor costs
b) Cheap availability of resources
c) Less government interference
0
2
4
6
8
10
12
14
16
18
20
16
20
14
Frequency
Interpretation: This graph has been concluded advantages of offshoring on business
operations of M&S. 16 respondents have view as low labor cost is one of the main advantage of
offshoring. 20 respondents have knowledge as cheap availability of resources is major benefit.
And remaining 14 employees have view as less government interference is main advantage of
offshoring business practice. Thus, offshoring is an effective business practice which will helps
an organisation in improvement of its business operations.
Theme 6: Risks of Offshoring
Q6) What are the risks availed by M&S by offshoring its business at global level? Frequency
a) Cultural Barrier 15
b) Competitor risk 17
c) Poor communication 18
18

a) Cultural Barrier b) Competitor risk c) Poor communication
13.5
14
14.5
15
15.5
16
16.5
17
17.5
18
15
17
18
Frequency
Interpretation: The above graph states that describes risks of offshoring on business
operations of M&S while they venturing into new market. 15 workers have opinion as cultural
barrier is major risk. 17 respondents believed that competitor is one of the main risk. Remaining
18 participants have opinion poor communication is biggest drawback of offshoring. Therefore,
poor communication is major drawback that negatively impact on an organisation and its
operations by increasing conflicts among employees.
Theme 7: Strategies for managing offshoring risks
Q7) What are the strategies of managing risks of offshoring in M&S in global
context?
Frequency
a) Adoption of training programs 15
b) Set up marketing tools and techniques 17
c) Implementation of Flat communication 18
19

a) Adoption of training programs
b) Set up marketing tools and techniques
c) Implementation of Flat communication
13.5
14.5
15.5
16.5
17.5
15
17
18
Frequency
Interpretation: This graph has been determined different strategies for managing
offshoring risk. According to the 15 respondents, adoption of training program is useful way for
M&S to use and reduce negative impact of cultural barrier. 17 respondents have opinion as
company must set up marketing tools and techniques which will assist them by overcoming risk
of higher competitions. Remaining 18 employees viewed as implementation of flat
communication considered to be most effective way for overcoming negative effect of
communication barrier.
Theme 8: Advantages of Outsourcing
Q8) What are the advantages availed by M&S by outsourcing its business
internationally?
Frequency
a) Reduce operating cost 13
b) Improvement in quality 15
c) Focus on main business activities 14
d) Access to highly qualified skill pool. 8
20

a) Reduce operating cost
b) Improvement in quality
c) Focus on main business activities
d) Access to highly qualified skill pool.
0
2
4
6
8
10
12
14
16
13
15
14
8
Frequency
Interpretation: It has been explained advantages of outsourcing over business operations
of M&S. As per the view of 13 employees out of 50, outsourcing helps M&S by reducing
operation cost. 15 workers have view as such type of business practice improve quality of
business. 14 workers have opinion as outsourcing focus on main business activities. And
remaining 8 workers have knowledge as outsourcing assist in access to highly qualified skill
pool.
Theme 9: Challenges faced by company by outsourcing its business
Q9) What are challenges availed by M&S by outsourcing its business operations
globally?
Frequency
a) Unanticipated Costs 16
b) Communication Difficulties 21
c) Time Zone difference 13
21

a) Unanticipated Costs
b) Communication Difficulties
c) Time Zone difference
0
5
10
15
20
25
16
21
13
Frequency
Interpretation: This graph has been explained challenges faced by company by
outsourcing its business. As per the opinion of 16 respondents, unanticipated costs is major issue
because it directly impact on customer's perception about the brand. 21 participants have opinion
as communication as the major problem as it creates conflict among employees. Remaining 13
respondents have idea as time zone difference is biggest challenge which impacts negatively
business operations.
Theme 10: Ways of managing risks of outsourcing
Q10) What are the strategies or ways of managing risks of outsourcing in M&S at
global level?
Frequency
a) Proper planning 16
b) Utilisation of appropriate communication channels 21
c) Utilisation of technology 13
22

a) Proper planning
b) Utilisation of appropriate communication channels
c) Utilisation of technology
0
5
10
15
20
25
16
21
13
Frequency
Interpretation: This table has been determined different strategies for overcoming
drawbacks of outsourcing on business operations of M&S. 16 respondents have idea as proper
planning will helps them in reducing impact of unanticipated cost. 21 workers have knowledge
as utilisation of appropriate communication channels will support an organisation by overcoming
effect of communication barrier. Rest of 13 respondents have view as proper utilisation of
technology is beneficial for a business enterprise to get over impact of time Zone difference.
Theme 11: Importance of globalisation in driving business success
Q11) How globalisation can drive success to M&S in offshoring its business? Frequency
a) Improved information between different countries 20
b) Larger market 16
c) Coaching and training 14
23

0
4
8
12
16
20
20
16 14
Frequency
Interpretation: This chart has been explained significance of globalisation in achieving
business success. 20 out of 50 respondents have knowledge as globalisation will helps an
organisation by improving information between different nations. 16 respondents stated
globalisation support an organisation by offering larger market. Remaining 14 respondents have
opinion as coaching and training is most essential part of globalisation which will support an
organisation to trained their workers and achieve higher competitive advantages.
Theme 12: Offshoring is best way for the success and growth of M&S
Q12) As per your opinion, offshoring is best way for the success and growth of
M&S?
Frequency
a) Agree 35
b) Disagree 15
24

a) Agree b) Disagree
0
5
10
15
20
25
30
35
35
15 Frequency
Interpretation: This graphical illustration determines effectiveness of offshoring for
M&S in improvement of its growth and success. 35 out of 50 respondents were agreed and
remaining 15 are disagreed. Therefore, majority of respondents are agreed which will be
beneficial for achieving of better position in the competitive market.
Theme 13: Effectiveness of offshoring while attainment of competitive advantages
Q13) Is offshoring business practice beneficial for M&S in achievement of
competitive advantages at global level?
Frequency
a) Yes 40
b) No 10
Interpretation: It has been explained importance of offshoring business practice while
achievement of competitive benefits at international level. 40 out of 50 respondents said as
offshoring is most effective practice for M&S to use and attain competitive advantages easily.
Remaining 10 respondents have view as offshoring is not essential for an organisation while
attainment of competitive advantages.
25

CHAPTER 5: RESEARCH OUTCOMES
Covered in PPT
CHAPTER 6: REFLECTION & RECOMMENDATION FOR
ALTERNATIVE RESEARCH METHODOLOGY-
Reflection
I am glad that I got this effective chance for performing research over the broad topic i.e.
“To Investigate the benefits and risks of offshoring and outsourcing on business operations of
multinational company. A study on Marks and Spencer. This investigation has helped me by
improving my literature review skill, time administration skill, data collection and data analysis
skill. By performing this study I become capable to increase my knowledge about the benfits and
shortcoming of outsourcing and offshoring on business operations. Apart from this, I faced
different issues while performing of investigation such as shortage of time, lack of capital,
behaviour of respondents is not proper etc. These issues highly impacted on mine while
collection of data from the respondents. In order to overcome these issues I have to follow
ethical consideration, use Gantt chart and identifying best resources of fund.
Recommendation for alternative research methodology
Questionnaire is an effective method to collect data which have been opted by researcher
for collecting data regarding the drawbacks and benefits of offshoring and outsourcing. Along
with this, there is an other research methodology which is “Interview”. It is an useful method of
collecting and interpreting data which would be helpful in gaining in-depth information about the
current study (Graham and et. al., 2017). This method will also beneficial for investigator while
driving of valid conclusion within given time duration. Along with this, interview method is
more useful for researcher to obtain detailed data regarding personal perceptions, opinions and
feelings.
CHAPTER 7: CONCLUSION AND RECOMMENDATION
Conclusion
It can be concluded role of globalisation in context of outsourcing and offshoring
business practice. Considering the above discussed findings, majority of participants have
sufficient information regarding the offshoring and outsourcing and its negative and positive
26

impact on business operations of an organisation. Exporting is a type of entry mode which has
been used by company to enter into new market. Along with this, different opinions for
outsourcing and offshoring ware also determined but information technology outsourcing is best
option of an organisation. As it will helps them in improvement of its success and enlargement at
international level. Large number of respondents have identified it to be cheap availability of
resources is main advantage and poor communication is main drawback of offshoring business
practice. Along with this, improvement in quality is major benefit and communication difficulty
is major disadvantage of outsourcing. Therefore, both outsourcing and offshoring have
advantages and disadvantage which will influence business operations in negative as well as
positive manner. As a conclusion, offshoring is used by company because it will helps them in
attainment of competitive advantages easily.
Recommendation
This report carries different recommendation through an organisation can easily get over
limitations of outsourcing and offshoring. Some effective ways will be determine as under:
Ways to overcome risk of offshoring: There are various risks of offshoring such as
cultural Barrier, competitor risk, poor communication etc. In order to address these issues, M&S
must provide training to their employees, set up marketing tools and techniques, and implement
flat communication. As these are more effective strategies for reducing negative impact of
offshoring business practice.
Ways to overcome risk of outsourcing: There are various limitations of outsourcing such
as unanticipated costs, communication difficulties, time zone difference etc. These are major
risks that negatively influence on business operations of Marks & Spencer. In order to solve
these issues, M&S must do proper planning, utilise appropriate communication channels and also
adopt latest technology. These ways helps an enterprise by solving issues of outsourcing and also
support them to gain competitive advantages easily.
Strategy to gain competitive benefits: In order to achieve competitive benefit, M&S
must previously conduct market research and hire talented employees. As knowledgeable and
talented worker plays vital role towards achievement of competitive advantages of Marks &
Spencer.
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