Benefits and Risks of Offshoring and Outsourcing at Three Ltd: A Study

This report analyzes the benefits and risks of offshoring and outsourcing for Three Ltd, a global telecommunications company. The research explores the concepts of offshoring and outsourcing, their impact on business operations, and the specific advantages and disadvantages for Three Ltd. The study investigates market development and product development strategies to overcome operational and cultural risks associated with these practices. The methodology includes a literature review, research philosophy (interpretivism), and data collection methods (questionnaires and secondary sources). The report examines the benefits of offshoring (business growth, control) and outsourcing (access to skilled expertise, 24/7 operations), while also addressing associated risks such as cultural and operational challenges. The research uses thematic analysis to analyze data and recommends alternative research methodologies. The conclusion summarizes the findings and provides recommendations for future research. The report is a valuable resource for understanding the complexities of offshoring and outsourcing in a global business context.

Research Project

Table of Contents
CHAPTER 1: INTRODUCTION....................................................................................................1
Overview of research..............................................................................................................1
Background of research..........................................................................................................1
Research aim:.........................................................................................................................2
Research Objectives: .............................................................................................................2
Research questions:................................................................................................................2
Rationale of research..............................................................................................................2
CHAPTER 2: LITERATURE REVIEW.........................................................................................2
Concept of offshoring and outsourcing..................................................................................3
Benefits of outsourcing and offshoring upon operation of Three..........................................3
Risks of outsourcing and offshoring upon operation of Three Ltd.......................................4
Different ways through which Three can easily overcome risks of outsourcing and offshoring
upon operation........................................................................................................................4
CHAPTER 3: RESEARCH METHODOLOGY.............................................................................4
Research Philosophy..............................................................................................................5
Research Approach.................................................................................................................5
Data collection........................................................................................................................5
Time Horizon..........................................................................................................................6
Data analysis...........................................................................................................................6
Sampling.................................................................................................................................6
Research limitation.................................................................................................................6
Ethical Consideration.............................................................................................................6
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION......................................................7
CHAPTER 5: REFLECTION AND RECOMMENDATION FOR ALTERNATIVE
RESEARCH METHODOLOGY...................................................................................................19
Reflection ............................................................................................................................19
Recommendation of alternative research methodology ......................................................19
CHAPTER 6: CONCLUSION......................................................................................................20
REFERENCES .............................................................................................................................21

APPENDIX ...................................................................................................................................22
Research Proposal Form......................................................................................................22
Research Ethics approval form.............................................................................................30

Title: To analyse benefits and the risks of offshoring and outsourcing upon operation of an
organisation. A study on Three Ltd.
CHAPTER 1: INTRODUCTION
Overview of research
Offshoring is consider as an important activity to obtaining the products and services
from one country to another. Mainly, it is related with operational process like supporting,
manufacturing, accounting and many more. Along with this, it also takes advantages of cost
differentials through relocating industries from costly nation to the cheaper economics with the
aim of sell the goods. Offshoring is not only related to the production of physical goods but also
linked to the services. It also save money for both seller and consumers as well. On the other
hand, outsourcing is also refers to the activities in which products and services obtained from
third party firm (Caniato and et. al., 2015). Furthermore, it also consider as a business practices
in which organisation hire other firm and person for executing activities or handling business
operation. As per current scenario, business organisation outsource services to improve their
performance level. Apart from this, outsourcing is related with the information technology that
includes development and programming. It help in establishing the positive image of the
company at market place and at the same time also provide opportunities to expand their
operational activities at global level.
Background of research
Offshoring and outsourcing play a crucial role in business activities in attaining higher
growth at market place. In this regards outsourcing occur when business pays to the outsider
suppliers towards the services and products. In order to keep their competitive image in market
place, company needs to hire talented workforce from third party organisation which may help
them in effectively executing entire business activities in systematic manner. Current research
based on Three Ltd., is a global brand under which different UMTS based mobile phone network
and broadband internet provider (Deftereos, 2016). Company operate their business in Hong
Kong, Macau, Austria, Denmark, Ireland, Italy and UK as well. It was founded in 2002 with the
aim of serving their services to large number of customers in over the world. Along with this, it
also provides 3G and 4G services by using its own network infrastructure.
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Research aim:
"To analyse benefits and the risks of offshoring and
outsourcing upon operation of an organisation". A study on Three
Ltd.
Research Objectives:
 To determine concept of offshoring and outsourcing.
 To identify benefits of outsourcing and offshoring upon operation of Three.
 To examine risks of outsourcing and offshoring upon operation of Three.
 To investigate different ways through which Three can easily overcome risks of
outsourcing and offshoring upon operation.
Research questions:
 What are the concept of offshoring and outsourcing?
 What are the benefits of outsourcing and offshoring upon operation of Three?
 What are the risks of outsourcing and offshoring upon operation of Three?
 What are the different ways through which Three can easily overcome risks of
outsourcing and offshoring upon operation?
Rationale of research
Current research is based on determining the benefits and risk of offshoring and
outsourcing within the operational function of the company. By carry out this research,
investigator easily understand and learn more towards the research topic that help them in taking
right and reliable results in future (Graham and et. al., 2017). It also support investigator to
enhance their skills and knowledge in order to draw a valid conclusion at the end of the research.
Along with this, the main purpose of undertaking research for self interest. This will contribute
in making their skills and knowledge more strong through which they can easily attain positive
outcomes.
CHAPTER 2: LITERATURE REVIEW
Literature review introduces as an essential section of research project. This part of
research helps an investigator by providing valid and deep information regarding the study.
Literature review is a systematic process which will assist an investigator to gather proper data
regarding the impact of offshoring and outsourcing process on business operations. In this
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section, aims and objectives of study will be address in systematic manner. Along with this,
different number of authors have give their opinion regarding the concept and impact of
outsourcing and offshoring business practice (Gylling and et. al., 2015).
Concept of offshoring and outsourcing
Offshoring and outsourcing are important part of any organisation due to provide
additional way to increase of their business operations. Both techniques are contributed into
globalisation to get advantage which is connected with these methods. There are defined both
methods for clear knowing about the improvement of an organisation is presented below:
Offshoring - According to Jonathan Webb, 2017, outsourcing is defining about the
internal activities which move from third party. There are consisting of resettlement of
organisational process from one nation to other. There are consisting those processes which is
actually transferable like producing, accounting , supporting etc. The main cause of dispersion to
cut down the price of labour cost as well as economic conditions.
Outsourcing - As per the opinion of Jeffrey Glen, 2018, it is mainly utilised by company
to spread out their business operations. It is consisting of the process to recruit people from
outside party and present their services and develop goods. It is mainly presented by staff
members in past.
Benefits of outsourcing and offshoring upon operation of Three
There are defined advantages of both methods which is connected with a company in the
condition of availing it to spread out business operations at international level.
Benefits of offshoring in Three Ltd.
Business Growth - According to the Peter Hammon, 2016, it is one of the major
advantage that can help to Three Ltd due to apply this method of offshoring in the context of
globalisation to deduct the cost of labour.
Control – It is important advantage which is connected with the utilisation of this method
is about control due to there is no engagement of any third party in reference to conduct
procedure of resettlement of the procedure of an organisation.
Benefits of Outsourcing to Three Ltd
Get access to skilled expertise - According to the Gino Lisondra, 2019, Outsourcing is
the procedure to recruiting of skilled expertise who can help to organisation to meet with their
goals and objectives.
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Running business 24x7 – Outsourcing of work by Three Ltd from the nation like Japan
to provide opportunity in various zone to conduct functions every time.
Risks of outsourcing and offshoring upon operation of Three Ltd
According to the Simone Seth, 2010, Offshoring as well as Outsourcing are kind of
business practice. With the help of these methods expand business operations at global level.
There are defining offshoring and outsourcing related risk in the reference of Three Ltd
presented below:
Cultural Risk – It is presented through different work ethics, varying communication
etiquette and language difference. Three Ltd influence by different types of business success and
their operations.
Operations Risk – Three Ltd face problem of sub par level service quality, disruption of
business, cost or overruns. Compliance risk and information security risk are consist under
operational risk.
Different ways through which Three can easily overcome risks of outsourcing and offshoring
upon operation
There are identified several ways for Three Ltd to enlargement of their business activities
at global level -
Market Development - According to the Annmarie Hanlon, 2018, market development is
an effective strategy for Three Ltd to increase heir business activities. It can occur through
promoting existing product at new market.
Product Development – It is defined as effective plan of action that will support to a
company in their improvement as well as their business activities at international level. The
particular strategy of Three Ltd launch new product at existing market place. Through different
activities a business intensify their operations in reference to packaging, improve quality.
CHAPTER 3: RESEARCH METHODOLOGY
It is one of the important section of whole research as it provide support to investigator to
undertake research activities in systematic manner. As it includes various methodology used by
investigator to gather relevant data and information from certain sources (Kaur, Singh and
Majumdar, 2018). This will improve the chances of attaining positive and reliable outcomes.
Mainly, it is a process applied by investigator to make better decision within the research that
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support in attaining set target and objectives in stipulate time frame. In this regards, there are
different research methods followed by investigator while executing activities of research. All
these are as follows:
Research Philosophy
It is related with belief towards the ways and option in which data and information should
be gather, analysed and interpreted. With the help of this, investigator can easily collect the right
information towards the selected topic and area as well (Liang and et. al., 2016). Mainly, it
classified on the basis of two philosophy such as interpretivism and positivism research
philosophy:
Positivism philosophy- This type of method is related with the view points that is based
in the factual knowledge collect through observation. In this, all the information can easily
interpretation in objectives basis. As it may aid in improving the chances of drawing a valid
conclusion.
Interpretivism philosophy- It refers to the philosophical in which researcher used group
by diverse approaches including phenomenology and constructivism as well. By this, researcher
gained valid information and at the same time also improve the chances of attaining positive and
reliable results at the end of research (Mihalache and Mihalache, 2016).
For carry out this research, investigator will use interpretivism research philosophy as it
help in gathering subjective information towards the specified research topic and area as well.
Research Approach
Inductive and deductive are two useful approach of research which is mainly depend on
qualitative and quantitative research. For this report, inductive approach of research will be
applied because it helps in collection of reliable data regarding the study. On the other hand,
deductive approach is not useful for this project because it take more resources of company.
Data collection
There are two kind of data collection methods including primary and secondary. Under
primary method of data collection, questionnaire is most useful instrument which will be applied
by researcher in accumulation of reliable and valid information regarding the current
investigation (Modarress, Ansari and Thies, 2016). In case of secondary method, books,
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magazines, journals etc., sources will be applied. Thus, both are useful methods of data
collection and support an investigator to gather appropriate data regarding the topic.
Time Horizon
Gantt chart introduces as an useful tool for identification of starting and ending time
duration about the investigation. This chart helps investigator to analysis time period of each
activities such as development of aims and objectives, literature review, research methodology,
data collection and data analysis etc. Along with this, Gantt chart is also useful for completing
full project within given time period (Musteen, 2016).
Data analysis
Thematic analysis consider important method of data analysis. As in the case different
themes will be created on each questions. Thematic analysis will also assist an investigator to
complete full dissertation within given time duration.
Sampling
Probability and non-probability are refers two types of sampling method. According to
this project, probability sampling will be applied by researcher. Main reason about selecting this
sampling is it not take more cost and time of an organisation (Oshri, Kotlarsky and Willcocks,
2015). With the help of probability sampling, 40 respondents will be selected. On the other side,
non-probability sampling is not useful according to this research because it need more time of an
enterprise.
Research limitation
There are different limitation in research which will impact on investigator while
accumulation of appropriate data from respondents. Insufficient time, lack of capital, lack of
resources, improper behaviour of participants etc. are identify major limitations of this project
which will effect on researcher while completion of research systematically and ethically
(Patrucco, Scalera and Luzzini, 2016). There are some limitation of research methodology such
as selection of sample size, development of aims and objectives etc.
Ethical Consideration
It is important for researcher to perform each activities of investigation in ethical manner.
Ethical consideration mainly related with three principles which is informed consent, anonymity
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and confidentiality. All these are main principles which must be follow by researcher while
completion of study in ethical and accurate manner.
CHAPTER 4: DATA ANALYSIS AND INTERPRETATION
Questionnaire
Name:
Age:
Contact no.:
Email address:
Q1) Do you have any idea about the concept of globalisation?
a) Yes
b) No
Q2) Does globalisation allow business organisation to expand their operational at global
level?
a) Yes
b) No
Q3) Ares you aware about the offshoring and outsourcing?
a) Yes
b) No
Q4) Is offshoring and outsourcing play crucial role in operational activities of Three Ltd.?
a) Yes
b) No
Q5) What are the benefits of offshoring for business organization and its operations as
well?
a) Enhance efficiency level
b) Time zone advantage
c) Reduce operational cost
Q6) As per your point of view, what are risk occur due to offshoring on Three Ltd.
operations?
a) Decision rights and authority
b) Lack of Proper Work Dissemination
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c) Culture-Barrier
Q7) What are the ways by which Tree can reduce the risk of offshoring on its operational
activities?
a) Use of advance technology
b) Appropriate training programs
c) Tie up with legal agency
Q8) What are the major advantage of outsourcing for business organization?
a) Reduce risk factor
b) Improve business growth
c) Improve flexibility in staff
Q9) What are the ways through which Three Ltd. can overcome from issues associated
with outsourcing?
a) Clear understanding of decision making power
b) Understand outsourcing company’s culture
c) Putting new process
Q10) Recommended the ways by which company improve their performance at global
level.
DATA SHEET
Q1) Do you have any idea about the concept of globalisation? Frequency
a) Yes 25
b) No 15
Q2) Does globalisation allow business organisation to expand their
operational at global level?
Frequency
a) Yes 30
b) No 10
Q3) Ares you aware about the offshoring and outsourcing? Frequency
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a) Yes 25
b) No 15
Q4) Is offshoring and outsourcing play crucial role in operational
activities of Three Ltd. ?
Frequency
a) Yes 30
b) No 10
Q5) What are the benefits of offshoring for business organization and
its operations as well?
Frequency
a) Enhance efficiency level 20
b) Time zone advantage 10
c) Reduce operational cost 10
Q6) As per your point of view, what are risk occur due to offshoring
on Three Ltd. operations?
Frequency
a) Decision rights and authority 15
b) Lack of Proper Work Dissemination 15
c) Culture-Barrier 10
Q7) What are the ways by which Three Ltd. can reduce the risk of
offshoring on its operational activities?
Frequency
a) Use of advance technology 15
b) Appropriate training programs 13
c) Tie up with legal agency 12
Q8) What are the major advantage of outsourcing for business
organization?
Frequency
a) Reduce risk factor 20
b) Improve business growth 10
c) Improve flexibility in staff 10
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