Business Research Report: Outsourcing Business Functions - HI6008

This business research report, prepared for Holmes Institute's HI6008 course, explores the multifaceted concept of outsourcing business functions. The report begins with an introduction outlining the increasing prevalence of outsourcing and its impact on business performance, followed by a clear project objective to understand the factors driving outsourcing decisions and their consequences. The scope of the project is defined, focusing on the various aspects of outsourcing and the factors influencing its adoption. A comprehensive literature review synthesizes existing research, highlighting the advantages such as cost reduction and focus on core functions, as well as disadvantages including confidentiality concerns and potential quality impacts. The research employs qualitative methods, including interviews, to gather primary data, while secondary data is sourced from reputable online resources. The methodology includes discussions of research design, reliability, validity, sampling techniques, and data collection methods. The report also addresses limitations, such as time constraints, and presents a detailed time schedule. Finally, the report concludes by summarizing key findings, emphasizing the evolving importance of outsourcing and the factors that influence its strategic implementation. The report is available on Desklib, a platform providing AI-based study tools for students.

RUNNING HEAD: HI6008 Business Research
Holmes Institute, Trimester 2, 2017
Business Research Proposal
Advantages and Disadvantages of Outsourcing Business Functions
Written by: Leilani Dajalos (ABNN3215)
Submitted to: Dr. Mahmound Bakkar

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Table of Contents
Research Title:...........................................................................................................................2
Introduction................................................................................................................................2
Project Objective........................................................................................................................2
Project Scope..............................................................................................................................3
Literature review........................................................................................................................3
Research Questions/Hypothesis.................................................................................................4
Research Design and Methodology...........................................................................................4
Research Limitations..................................................................................................................6
Time schedule (Research plan)..................................................................................................7
Conclusion................................................................................................................................10
References................................................................................................................................10
Appendix..................................................................................................................................11

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Research Title: Advantages and Disadvantages of Outsourcing Business Functions
Introduction
Role of outsourcing of the business functions is increasing in the business environment due to
a variety of reasons. The concept of outsourcing has provided various advantages to the
business which helps in improving the performance of the business. There are few limitations
associated while using the concept of outsourcing. There has been a rise in the number of
organizations using outsourcing for performing the secondary functions of the business. This
research program will discuss the various pros and cons associated with the use of
outsourcing of the business functions. Data will be collected with the use of various
techniques or methods for developing knowledge regarding the research topic.
Figure 1: Outsourcing
Source: (Mirabella, 2017)
Project Objective
The concept of outsourcing has gained much importance in the business environment due to
its various advantages to the business. This research program has been conducted with a
motive to gain knowledge of the reasons which support the decision of outsourcing the
business functions. Data will be gathered for developing a better knowledge of these reasons

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and of the factors which adversely affect the decision of outsourcing of the business function.
Project Scope
Outsourcing is an important aspect which is being used by the businesses for the purpose of
conducting their secondary operations or functions effectively. Every function of the business
cannot be outsourced due to various factors and these factors will be discussed in this
research. In this research, the discussion will be made regarding the factors which determine
the decision of the business for outsourcing the functions of the business.
Literature review
In the words of Mella & Pellicelli (2012), the term outsourcing can be understood as the
delegation of the function of the business to the third party or outside party. This decision of
outsourcing the business function is taken by the business with a motive to enhance the
effectiveness of the business. The decision regarding the outsourcing depends on the type of
function which business is planning to outsource. Various functions of the business are being
outsourced for diverting the focus of the business on important functions. Companies are
outsourcing accounting function, computer services, human resource function and sales and
marketing function (Raassens, et. al., 2012).
According to Raudla and Tammel (2015), different advantages are there which
supports the decision of outsourcing of the business functions. These advantages include
reduction in the cost of the business, better functioning of the other functions of the business,
gaining expertise in the function outsourced, placing the efforts on the important tasks of the

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business, focus on the core functions of the business, enhancement in the productivity of the
business, investment on the core functions, better management of the resources and
identification of the new opportunities (Chang and Gurbaxani, 2012). On the other hand,
there are few disadvantages of using outsourcing which need to be considered while making a
decision. These disadvantages include a threat to the confidentiality of the business, hidden
cost, loss of control over the managerial decisions of the business, quality of the product or
service may get affected, negative impact on the image of the business and fall in the
customer satisfaction level. The decision regarding the outsourcing of the business function is
dependent on these advantages and disadvantages of the business (Freytag, et. al., 2012).
Research Questions/Hypothesis
Primary question
 What are the pros and cons of adopting the concept of outsourcing of business
functions?
Secondary questions
 What is the trend of outsourcing of the business functions in the changing business
environment?
 Which factors help in taking a decision regarding the outsourcing of business
functions?
Hypothesis
 Outsourcing of the business functions has reduced the burden of the business.
 Outsourcing of the business functions has resulted in the loss of control of the
business operations.

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Research Design and Methodology
Research methodology discusses the various methods which will be used by the researcher
for gathering data. Data collection is an important aspect of the quality of the research is
determined by the collected data. These methods are discussed below:
The process of the Qualitative Research: Qualitative research method has been chosen for
this research program. This method develops an understanding of the reasons, opinion, and
motivations. Qualitative research method has helped in the providing insights of the problem
of the research or helped in the development of ideas (Crossman, 2017). Data collection
process will be initiated with the help of primary and secondary sources. The interview will
be conducted for the purpose of gathering primary data directly from the respondents
(Khomba, 2011).
Approaches to reliability and Validity: ethical aspects will be considered in this research
which is crucial as these ensure that research is being executed in a right manner without
creating any harm to society. The researcher will follow few principles while conducting this
research. Principles of confidentiality, honesty, integrity, and fairness. Secondary sources
published after the year 2010 will be considered. The motive behind this is to present the
current or updated data.
Sampling and Sample Size: A sampling technique will be applied while conducting this
research. Limited time is available for completing this research for maintaining the relevance
of the research. Probability sampling will be used for analyzing the data and developing
conclusion on the basis of the analyzed data (Nirmala, 2013). Data will be collected from the
employees working in Multinational companies so as to gather data related to the research
topic. Data will be collected from 20 respondents. Analysis of the data is an important part of
the reliability of the data is based on this process.

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Data Collection Method: data collection process must be effective as the chances of success
are dependent on this process. Data has been gathered with the use of primary and secondary
methods. Primary data will be gathered with the help of an interview conducted face to face
and secondary data will be gathered with the help of internet sources (Persaud, 2010). When
the focus is on the reliability of the method, the secondary source is preferred on the primary
(Johnston, 2014). Primary data will be gathered from the employees of the organizations so
as to gather their views related to the research topic. Internet sources will be accessed for
gathering secondary data and gathering reliable form of data (Johnston, 2014).
Variables Specifications: face to face interview has been conducted for gathering data
related to the research. Targeted market for the face to face interview is the employees
working in large companies.
Research Limitations
There are few limitations which are being faced by the researcher which affects the research
and are not in the control of the researcher. These limitations need to be monitored and
mentioned to analyze them and adopt strategies for coping with the limitations. Limitations
identified for this research program are stated below:
 Availability of limited time for conducting the research. This limited time can affect
the research process. Researchers need to ensure that research is completed within the
time framed.
 Another limitation which can affect the research process is lack of access to the data.

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Time schedule (Research plan)
Sequenc
e
Activities Duration
(in Months)
Description
1) Making decisions
regarding the topic
2 The decision will be taken regarding the
topic on which research is to be
conducted.
2) Planning stage 5 Plans will be formulated for conducting
the research in a proper manner and
completing it successfully.
3) Initiating
implementation
process
8 This phase will in include the initiation
of the implementation process for
executing the plans.
4) Choosing data
collection methods
1 Methods will be selected for gathering
data as this data ensures that research is
executed by maintaining reliability.
5) Data collection stage 7 In this phase, focus is on ensuring quality
data is gathered
6) Analysis and
evaluation phase
3 Analysis will be done on gathered data
7) Conclusion and
recommendations
1 The conclusion will be based on the
analyzed data and recommendations will
be based on the whole research.
Gantt chart

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Conclusion
It can be summarised from the above discussion that the importance of outsourcing is
increasing with the change in the business environment. Outsourcing is being preferred by the
businesses depending on the type of the service which business is planning to outsource.
Different factors affect the decision regarding the outsourcing. These factors include the size
of the business, type of the function, the budget of the company and cost of outsourcing of
the function. Views of the different authors have been presented in this research program.
References
Brunsdon, C. (2017). Quantitative methods II. Progress in Human Geography, 41(4), 512–
523.
Chang, Y.B. and Gurbaxani, V. (2012). Information technology outsourcing, knowledge
transfer, and firm productivity: An empirical analysis. MIS quarterly, 36(4).
Freytag, P.V., Clarke, A.H. and Evald, M.R. (2012). Reconsidering outsourcing
solutions. European Management Journal, 30(2), pp.99-110.
Johnston, M. P. (2014). Secondary Data Analysis: A Method of which the Time Has Come.
Qualitative and Quantitative Methods in Libraries, 619 –626.
Khomba, J. (2011). Research Design and Methodology. University of Pretoria.

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Mella, P. and Pellicelli, M. (2012). The Strategies of Outsourcing and Offshoring. American
International Journal of Contemporary Research (ISSN: 2162-139X), pp.116-127.
Mirabella, M. (2017). Fantastic 2017 Growth Hack: 34% of Companies are Outsourcing. New
Theory.
Nirmala, Y. (2013). Chapter four: research design. Language in India, 13 (2), pp. 102.
Persaud, N. (2010). Primary data source. In N. Salkind (Ed.), Encyclopedia of research
design. Thousand Oaks, CA: SAGE Publications, Inc.
Raassens, N., Wuyts, S. and Geyskens, I. (2012). The market valuation of outsourcing new
product development. Journal of Marketing Research, 49(5), pp.682-695.
Raudla, R. and Tammel, K. (2015). Creating shared service centres for public sector
accounting. Accounting, Auditing & Accountability Journal, 28(2), pp.158-179.
Vendere. (2010). Lead Generation Outsourcing Statistics - Do you believe this graph?.
Vendere Partners.
Appendix
Graph 1: Functions being outsourced by the business
Source: (Vendere, 2010)