Research Project: The Impact of Outsourcing on an Organisation

This research project examines the influence of outsourcing on the business operations of MTN Group Limited, a leading telecommunications company. The study investigates how outsourcing impacts cost reduction, resource management, and competitive advantage. It explores the benefits and drawbacks of outsourcing, analyzing its effects on MTN Group's performance and identifying strategies to overcome challenges. The research employs a qualitative approach, using a descriptive research design and both primary and secondary data collection methods, including questionnaires administered to organizational employees. The findings conclude that strategic outsourcing improves organizational performance by reducing expenses and risks, increasing flexibility, and fostering competitive advantages. These improvements lead to enhanced sales, profitability, customer satisfaction, and market share. The report provides valuable insights for businesses considering outsourcing as a strategic tool for growth and efficiency.

Research Project
(The Impact of Outsourcing
on an Organisation)

Abstract
This chosen research work based on the evaluation of the influence of outsourcing over
the enterprise operations of MTN Group Limited, which is a market leader in the fast moving
telecommunication company. The key motive of research is to processing the cognition in
regards to the influence of outsourcing on the business operations of MTN Group Limited.
Outsourcing is the most effective and widely applied strategic step which is opt by businesses for
the reason of reaching at the higher position and success by reducing cost and managing
resources in proper manner. The study is based on a specified area of issue which can be
analysed through the aim and objectives, thus are effectual in directing the whole evaluation in
effective way. The section of literature review in consist of various aspect like concept of
outsourcing, benefits and drawbacks of outsourcing, the influence of outsourcing on the
enterprise execution of MTN Group Limited and the measures to overcome the challenges faced
by MTN Group Limited during outsourcing. The in-depth analysis over the area assist the
investigation in support the study in proper manner.
This study has been done on the ground of qualitative investigation in which descriptive
research design was used to conducting in-depth analysis, thus it recognised to be the appropriate
source to accumulation of valid and reliable data. In this, primary as well as secondary tools were
applied to gather relevant information. However, questionnaire was applied to gather information
from organisational employees thus they are most suitable in providing in-depth data related to
the operations of firm.
The investigation concludes that strategic outsourcing, results in improved authoritative
execution by decreasing the two expenses and dangers, expanding adaptability for development
just as opening up distinct advantages for centre competency building. This prompts improved
deals, better benefits, increasingly fulfilled clients and better piece of the overall industry.

Table of Contents
Abstract ...........................................................................................................................................2
TITLE..............................................................................................................................................1
Introduction......................................................................................................................................1
Literature Review ............................................................................................................................8
Research Methodology .................................................................................................................17
Data Analysis, Results and discussion ......................................................................................22
Discussion .....................................................................................................................................43
Conclusion and Recommendation ................................................................................................45
Conclusion ...........................................................................................................................45
Recommendation..................................................................................................................46
Area for further work ...........................................................................................................47
References .....................................................................................................................................48
Appendix .......................................................................................................................................51

TITLE
The Impact of Outsourcing on an Organisation.
Introduction
Overview of the Research
Outsourcing is reasoned as an understanding in that one businesses hires other
organisations to be accountable in order to conceived or existent activities which is or could be
done internally. In another work outsourcing is also refers as a process which involves
transferring workforces, resources and assets from one organisation to another. In today's global
organisational era the primary obligation of an organisation is to achieving competitive revenue
and profit via enhancing its business operations at large level (Christie, 2014). Outsourcing is
considered as a strategic use of outside sources that are appropriate to play functions which are
mainly assisted through inside employees and available resources. With the use of effective and
well managed outsourcing agreement, organisations can attain growth in market that would
otherwise be uneconomical.
In this present research work MTN Group Limited is the selected businesses. It is a
transnational large South African mobile Telecommunication company, which offers variety of
services to the buyers in order to maintaining their sustainability at work place for life long
execution of business functions. The company mainly operates in many African, European and
Asian Countries. The company has incorporated in the year of 1994 and the native management
quarter of the business is in Johannesburg, South Africa.
Outsourcing is basically referring as the procurement regarding goods and services
through resources which are external to the firm. It also defined as a phenomena in which an
organisation delegates part of its internal functions or operations to a third party and the third
party attaining full control over that organisational operation/process. In this competitive era,
businesses are majorly concern over reaching at higher growth and success and for this,
organisations are considering the concept of outsourcing as a major strategic step to attaining
competitive edge. Outsourcing is considered as the major need for organisation thus it is
effective in reducing and managing business cost, which create benefits for the firm in
achievement of significant opportunities and development (Wanyama, 2013). The project
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mainly based on the study about the impact of outsourcing over the performance of business, for
better understanding of the project, planned aim and objectives are developed for better analysis
of research issue, an appropriate literature review will be taken place to provide theoretical
support to the investigation and in this, methodologies will be apply that supports the activity in
appropriate way. Furthermore, information evaluation will be implement for the purpose of
proper determination of information to drawing accurate and effective results. Conclusion and
recommendation will be made on the outcomes of the research.
Background of the Research
With a progressively turbulent business environment, businesses are constantly looking
for better opportunities and ways for attaining higher competitive advantage in between of the
commercial centre, thus this develops advantage for an organisation in enhancing their brand
value (Comelli, 2012). One of the strategies that firms can employ to acquire sustainable
competitive advantage is contract manufacturing which is basically known as outsourcing thus, it
considered to be an effective part of a business process, that is origin through the external service
providers with no any kind of regard for the type of relation with these suppliers. MTN Group
Limited is popular South African Multinational telecommunication products and services
provider company. The company has its major operations in European, African and Asian
Countries, The main office or native operations of the firm is conducted from Johannesburg,
South Africa. The company has started its business operations from the year of 1994 as a public
limited company. The organization widely deals as a public limited company which has
approximately 17510 staffs who are putting their significant attempts in the development and
maturations of business. The organisation has provided GSM related products and Internet
services. In the year of 2015, the overall revenue of the firm is around 15.432 Billion. MTN
International (Mauritius) Ltd. is a part of MTN Group Limited, it is an investment holding
company which offers telecommunication services, by its subsidiaries. The company was
formerly known as mobile Telephone Network International Limited. The company has its
worldwide operations and the it is widely concern over enhancing its operations for the intention
of reaching at significant position within market where growth and profitability is high. The
company was majorly based in Port Louis, Mauritius. MTN International (Mauritius) Ltd.
majorly operates as a subsidiary of MTN Group Limited. Outsourcing has been recognised as
one of the potential strategy which organisations utilize in respect to remain competitive in the
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current dynamic business environment. MTN Group Limited have adopted outsourcing for
implementing an appropriate value chain activity to third parties in respect to exploring the
business operations at wide scale. This is due to the significance of resulting from likewise lower
cost, better customer satisfaction and more importantly freeing the management to concentrate
on the more strategic issues by ceding the non-core operations to specialized firms. MTN Group
Limited is also operating in telecommunication operators, so outsourcing is effective for the firm
in reducing extra cost which helps the business in achieving significant position. Outsourcing is
effective in developing good relationship among two countries or organisations in terms of
conducting trading, however the good relations helps the two regions in positively satisfying the
fundamental needs of customers within commercial centre.
Purpose of the Study
The considered project is based on analysing the perceived influence of outsourcing on
the overall performance of a business (Contreras and Jacob, 2017). The key motive of execution
of this investigation is to conduct detailed investigation over the research issue in respect to
address it in appropriate manner. This study helps people, learner or students in exploring the
idea and cognition in regards to the chosen sphere of work. This is a broad domain of
investigation that sought to implement the interaction among the drive for outsourcing and the
influence of this sort of outsourcing on the business operations and performance (Wiengarten,
Pagell and Fynes, 2013). This is an academic research which provide personal as well as
professional benefits to individual, thus this survey look into the cognition of learner and the
people who are very much interested towards the specified area and also assist people towards
attaining growth in their professional aspects. In this developed organisational environment, the
rivalry level is so broad within the market and businesses are more concern over their transaction
to make them better and cost effective in nature for attaining long term future benefits like higher
growth, sustainability and competitive advantage. In today's business world, cost reduction is one
of the major reason due to which organisations are concern over adopting the strategy of
outsourcing in their business operations. Organisations are concern on resolving the issue and for
this outsourcing is considered to be the potential aspect that helps businesses in attaining
competitive advantage. Outsourcing basically allows an individual or organisations to lower
down the spending on determinate costs and manage uncertain costs that can effect the potential
savings (De Pascalis, 2017). The major purpose for choosing the concept of Outsources and its
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impact over organisational operations and performance is to analysing all the aspects related with
outsources and its effectiveness in organisational growth. The present area of work is suitable in
exploring the cognition and skill level of learner in regards to the concept of outsourcing and
how it is benefited for the growth of business. This study is effectual for the people who are
interested in regards to the selected area of study and looking for their future business
departments, thus outsourcing is a key aspect of business and this provide a specific assistance to
the people to conduct easy business operations. This survey also performs an effective and
crucial role in rendering reliable information to the students, from management studies and for
whom study regarding outsourcing is effective.
Rational of the Research
The investigation into actual consideration is related to the evaluation of the influence of
Outsourcing on an organisation. The selected research is a wide academic area that gives detailed
evaluation over the investigation issue. This survey is basically based on the issue of the
influence of outsourcing over functions of the business in effectual way (Dibie, 2017). This plays
vital role in developing the idea of people regarding the with outsourcing which performs an
effective perspective in implementing the skills in professional level. This is a management level
investigation and it is not required to having such sort of knowledge to each individual, so the
potential reason behind conducting the investigation is to exploring knowledge in respect to the
effectiveness of outsourcing and how it could be benefited for developing opportunity for
businesses. This study has benefit for researcher, learners and organisations, the people who are
interested towards the similar area and based on the operations, related with outsourcing. This
study has some positive benefits for the organisations, which operates at wider level and based
on outsourcing operations. With the help of this research, people will get to know about the
significance of outsourcing and how it provides effectiveness to reducing cost and attaining
competitive advantage. This study has future benefits for the businesses in terms of smooth
functioning of organisational operations. This study is also effective in assisting the
organisations which are not using outsourcing as their key strategic step towards attainment of
higher position. This exploration work is executed for the individual interest of the investigator,
thus in-depth evaluation over the chosen area helps the investigator in attaining future goals
related with business objectives in effective manner (Dickinson and Schaeffer, 2015). In-depth
analysis on outsourcing is effective in developing an effectual theoretical framework that gives
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potentials regarding the aspect of outsourcing and this research also develops future benefits for
researcher and individuals who are willing to get knowledge about the chosen area of work.
Research Aim
Investigation aim is determined as a broad and brief expression that signifies the overall
purpose of the study. This majorly present in the form of predetermined statement which provide
proper assistance to the investigator to conduct all investigation actions in proper way. This is the
key area of an exploration work and the key aim of this particular investigation is "To explore
the perceived impact of outsourcing on the overall performance of an organisation". A study on
MTN Group Limited.
Research Objectives
This is also an another key aspect of the section of introduction, which provides a clear
direction towards moving forward in a right direction. This area of an exploration is interrelated
through the point of the investigation as in this factors are characterized in little explanations that
means the content of investigation in broad manner. This part underpins the researcher in
collection of information through examining the factors in appropriate way. The noteworthy
destinations of this specific research are related as under:
 To understand the concept of Outsourcing in the context of business.
 To identify the benefits and drawbacks of Outsourcing.
 To determine the influence of outsourcing on the business performance of MTN Group
Limited. To evaluate the measures to overcome the challenges faced by MTN Group Limited
during outsourcing.
Research Questions
This is additionally a basic part of examination in light of the fact that with the assistance
of research question, the piece of writing audit must be done in appropriate manner, so this
assumes most essential job in pushing ahead towards right way. In this ebb and flow case, the
scientist stresses on recognizing answers for following rundown of questions:
 What is the concept of Outsourcing in the context of business?
 What are the key benefits and drawbacks of Outsourcing?
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 What is the major influence of outsourcing on the business performance of MTN Group
Limited? What are the measures used to overcome the challenges faced by MTN Group Limited
during outsourcing?
Structure of the project
This is an imperative section of research project; thus it renders a broad way to the
investigator to conduct over all research actions in smooth way. Structure is referring as an
outline specification of the work which clearly defines a path way that assist towards reaching at
the potential outcome. A project includes different elements that are associated as below:
Introduction: This recognised as the key way of a investigation work, as it works as a primary
step which provides an effective overview regarding the chosen area of study (Glaister, 2014).
This presents the overview, background, the purpose, rational and the aim or objectives of the
investigation.
Literature Review: It is another and second essential aspect of an investigation work, it basically
gives a core details regarding to the selected area of work. This part of investigation is effectual
in developing a theoretical framework which provide an in-depth evaluation related to the chosen
field of work. This part of investigation is basically depend over secondary sources, thus in this
data are basically accumulated by through books, journals, published research articles etc.
Research Methodology: It is third and most significant piece of an investigation work, along
these lines it gives a precise supporting to the investigator to execute the general proposition in
factual manner. This area depends on different application which supports the general work in
right way. Research procedure includes kind of examination, explore configuration, inquire
about methodology, look into theory, information gathering apparatuses, information analysis
and so forth.
Data Analysis: It is the key aspect of a study in that accumulated information is determined in
the direction of research objectives and questions that are widely based on research aim. It
renders detail information related to outcome of the investigation. This part of investigation
majorly helps the researcher in analysing the overall information by the help of using thematic
analysis as it is the most suitable tool that helps the researcher in drawing valid and reliable
outcome (Mann and Graham, 2016).
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Conclusion and Recommendation: It is the last area of an investigation work wherein legitimate
end is attracted understanding with research targets and point of the research. Alongside that,
suggestions are likewise given for getting improvement the present working environment with
the assistance of creating extent of learning for workforce.
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Literature Review
A literature review is a most effective aspect of a research area, thus it mention as both
statement and compendious of the complete and current state of cognition or idea on a chosen
area of study has found in academic books and journal articles. This section of investigation
plays an imperative part in execution of theoretical frame work by accumulation of information
by critically analyse the views and cognition of different authors and writers. The investigator
requires to execute an inside and out survey of information distributed through method for
secondary sources. In this, information is essentially collected by secondary aspects like books,
journals, distributed research articles, online destinations and so on. In this segment, significantly
backing can be given through investigation of past writing in legitimate way (Kareem,
Unachukwu and Okegbemi, 2018). The area makes an establishment for researcher by giving
them data from different viewpoints. The different speculations and models identified with field
of study is assessed through this area. In addition, the results logical in past investigations is
resolved in order to distinguish writing hole. This segment is significantly viable in giving a top
to bottom evaluation over the exploration issue through talking about the point of view of
various authors and writers who are having huge learning and thought base in the particular
territory. This segment fundamentally builds up an inside and out hypothetical structure which is
successful in giving help to the perusers with respect to the region of research.
The concept of Outsourcing in the context of business.
According to the opinion of Smriti Chand, 2019, Outsourcing is determined as an activity
which is done in-house is allotted or expanded to an stranger or outsider seller on a revenant
ground. outsourcing is referring as the organisational activity of acquiring for employment from
an external aspects at the place where holding the control over business possession and
inadvertence of the services being outsourced. In the context of business, outsourcing performs a
crucial role in the success and development of businesses in appropriate manner. Outsourcing
was not informally determined as a concern strategy until the year of 1989, thus, this tools is
effective and reliable for smooth functioning of businesses and most of the businesses were not
significantly autonomous they outsourced those operations for that the organisation had not
attained ability at internal basis (Kiarie, 2017). The utilization of outside providers for these is
significant, however frill organizations might be named the standard stage in the progression of
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re-appropriating. This predominantly support business and its organizations is the accompanying
stage. In the range of 1990s, as associations began to focus more on cost-saving measures, they
started to re-appropriating those limits imperative to run an association anyway not related
expressly significantly business. Re-appropriating can be considered as the indispensable use of
outside advantages for perform practices generally helped through within staff and resources.
Redistributing is generally called energizes the board, thusly it is a reasonable strategy by which
associations contracts out genuine abilities to explicit and compelling organization supplier, who
become significant colleagues. Associations have been worry over employing contractual worker
for explicit kind of work or to a particular scope of pinnacles and through in their remaining task
at hand and have framed long haul connections through which a business abilities supplement or
supplement their own.
Outsourcing is widely known as a business process outsourcing. This determined as the process
of hiring people of other organisations, at international and domestic level to manage business
activities in proper manner (KIZITO, 2015). Outsourcing has various benefits for business
operations like reduction in cost, proper management of resources, significant use of businesses
assets etc. Outsourcing has become common business practice which allows a large and medium
size organisational centres to outsource their organisational activities for the purpose of
enhancement of enterprises functions and actions. It basically allows an organisational concern
to centring about the core competencies and, more significantly, decreasing the costs and
improve organisational efficiency, all very much hassle-free. As time has gone through over the
last few decade or so, organisational owners now realize that there are many grounds on that
business from small as well as big size outsource assorted opportunities, jobs facilities, but the
most conspicuous reward seems to be the fact that it saves money. As per the opinion of Alika
Cooper, 2018, This recognised as the prior reason for which organisations are concern over using
the strategic step of outsourcing their business operations and attain high range of profit and
growth. In the context of large business organisation, outsourcing is effective in lower down the
cost and able to conduct business operations in considerably less money, this create value of
business organisations to achieving higher range of maturation and gainfulness by reducing the
extra cost of firm.
As per the views analysed by the authors, it has been stated that outsourcing is effective
for businesses to attain growth and success and in today's competitive era organisations are
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