Business Research on Outsourcing: Advantages and Disadvantages

Running head: BUSINESS RESEARCH
Outsourcing Business Functions
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BUSINESS RESEARCH 1
Table of Contents
Introduction......................................................................................................................................2
Project Objective.............................................................................................................................2
Research justification.......................................................................................................................2
Literature Review............................................................................................................................3
Meaning and concept of Outsourcing..........................................................................................3
Advantages of outsourcing...........................................................................................................4
Disadvantages of outsourcing......................................................................................................7
Conclusion.......................................................................................................................................9
References......................................................................................................................................11

BUSINESS RESEARCH 2
Introduction
In the international business scenario, the business could confront from the stiff competition to
operate their business acts to meet accountability. Moreover, the cost control is imperative aspect
wherein the different methods are concentrated by the company like fair treatment in the
organization, a strong mission, and co-operation (Baraldi, Proença, Proença, & De Castro, 2014).
Business outsourcing function could be a crucial way of operating the business acts and make the
decision accordingly. In addition, it is evaluated that business outsourcing is a key component
that has been enhanced popularity in the recent era (Hernandez & Ona 2015). It acts is the
business when the large company decided to give its routine job act to a third party company,
which is effective to manage cost and time in the company (Pearce 2014). Through this method,
most of the business acts are related to consumer care work as well as such acts could not be a
key factor in the organization. But, at the same time, it is also founded that business outsourcing
is an act which is generally used by big industry wherein the different functions and acts could
be outsourced by a third-party company (Patil & Wongsurawat, 2015).
Project Objective
The primary purpose of this study is to critically examine the outsourcing of business functions.
Hence, the following research objectives will be accomplished by the study:
 To comprehend the concept and meaning of business outsourcing function
 To comprehend the advantages of business function outsourcing
 To examines the disadvantages of business function outsourcing
Research justification
Business outsourcing is the practice wherein job function act and any work form are assigned to
another individual as well as firm. It is practiced to manage acts across the country. It is

BUSINESS RESEARCH 3
practiced to manage the job acts and enlarge its business acts across the country. Furthermore,
business is identified as business acts that could be essential in a specified situation. For
example, the organization desires to create and sell particular goods and services. But, it is not
needed that same organization creates goods in their region due to the higher cost as compared to
another state. Therefore, it can outsource this act of business to third party, company in which
the cost of the product is lower. Hence, this activity could come under business outsourcing.
Literature Review
Meaning and concept of Outsourcing
According to Schniederjans Schniederjans & Schniederjans (2015) core business function
outsourcing is determined as the procedure of business wherein corporation outsources their
some function to the third party due to managing each activity and make the decision
accordingly. For example, most of the organization has outsourced their telephonic section and
managing the customer business acts to the third party, which has the capability to run the
business acts of the firm and make the decision accordingly. It could be effective in outsourcing
business activity. Moreover, it is evaluated that business outsourcing being a larger industry that
is identified as the BPO (business process outsourcing).
In support of this, Kumari Singh Mishra & Garza-Reyes (2015) stated that organization could
outsource their many activities such as housekeeping abilities of the office building as well as
janitorial services. This activity could be effective for the firm of service management as the new
business practices flow. It is also stated that outsourcing is determined as the business approach
that assigns the process, decision, and functions for the firm to a third-party firm. It could be
operated by negotiating an agreement as well as contract with vendors that takes the