Research Project: The Impact of Outsourcing on an Organisation

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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.
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Research Project
(The Impact of Outsourcing
on an Organisation)
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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.
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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
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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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concern over outsource their business for the purpose of making effective expansion. The writers
view represents that outsourcing is a easy way to exploring the operations of firm at wider level,
but it is an effective tool which is used as a major strategic source of expansion of business, thus
organisations are widely concern over using outsourcing as to expanding business with core skill,
idea and experience. In the case of MTN Group Ltd. the company has plan to outsource some of
its call centre facilities in a bid to utilise its operations and develop customer experience. For
business growth, MTN Group has adopted a hybrid outsource model which will result in the firm
retaining few call centre operations while others are outsources to a third party vendor. As per
the views analysis in the project it has been determined that outsource is effective for the
businesses to expand its operations and attain benefits.
The benefits and drawbacks of Outsourcing.
As per the opinion of James Buck, 2019, Organisations in today's contemporary business
situation are interested over applying outsourcing as their key strategic aspect in respect to
managing businesses functions to reduce extra cost and streamline efficiency. The process of
outsourcing basically includes enlisting services and products from outside of the organisation.
In today's business era, organisation are not much capable to operate all operations in effective
manner and organisations are widely concern over using outsourcing as their key strategic step in
respect to reducing extra cost and maintaining the operations of firm in effective manner.
Outsourcing can be much more extended in larger businesses corporations (Lama and et. al.,
2014). Outsourcing is determined as an effective business strategy which plays a vital role in
assisting the organisational functions, actions, operations and decision responsibilities from the
internal management to the outside suppliers. Outsourcing is a vast concept which has numerous
advantages and disadvantages, in which some are associated as below:
Benefits of Outsourcing
Improve focus on core business activities: This is the potential benefit of outsourcing the
operations of businesses, thus it can make an organisation free to focus on organisational basic
strength, allowing the employees to be focused over their business task and on the upcoming
strategies, thus this all aspects are effective for the firm in smooth functioning of business
operations in effective manner. Business focus is required for each size of organisations for
operate at global level, however the proper focus over business operations crate benefit for the
firm in execution of organisational activities in more effective and efficient manner.
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Increased Efficiency: This is also a major benefit which can associated through the
increased efficiency of operations and productions. In today's business environment
organisations are concern over choosing an outsourcing business which mainly particularize in
the activity or service an individual and organisation want to carry which can help in attaining
more foraminiferous, cost-efficient service, often of wider quality (Le Roes, 2017). This is the
major aspect for a business to develop the efficiency of work in order to achieving potential
attainment or profitability. With developing productiveness and efficiency, an organisation can
be more successful, better-prepared for industry situation and have an efficient cash flow which
may result in attainment of higher profitability and growth.
Controlled Cost: One of the key benefit of outsourcing is cost savings, thus the major
focus of businesses is to saving the cost, however organisations are using strategic step of
conducting outsource operations in respect to controlling the cost of firm. The less expenses of
organisational functions and labour, and decreases in operating expense makes it captivating to
outsource. High cost saving and effective control over it attained through outsourcing can help
an individual or business to release capital for making investment in different suitable areas.
Drawbacks of Outsourcing
Hidden Cost: This is the major disadvantages of outsourcing the business operations.
Operations related with outsourcing are considered to be cost effective in nature, thus an
individual or organisation requires to beware of getting ripped off. Outsourcing organisations are
concern over higher profitability and they approach small as well as medium size business
owners to make collaboration with them and sign a lengthy contractual agreement or they make
the agreement as per their own term which may influence the operations by paying plenty, so it is
essential for the business to carefully readout the agreements in respect to making business safe
from unexpected cost (Maitho, 2017). This issue is mainly faces at the situation when the norms
are not clearly mentioned or explained.
Security Risk: This termed as one of the major disadvantage of outsourcing as in this,
various risks are involved like losing sensitive information, loss of data confidentiality. For the
execution of outsource operations, organisations are generally facing the issue of security, thus it
is essential for businesses to have proper control on the operations of firm in respect to avoid the
chances of uncertainty.
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Reduction in quality Control: This is also a major drawback of outsourcing, thus in the
competitive market the key concern of the business is to achieving key position as to maintaining
the image of firm. Due to the motivation regarding profit organisations are not very much
seeking over the quality of work which may result in higher dissatisfaction of people. This create
bad influence over the image of firm and organisation will not be able to sustain for long run of
business operation.
As per the opinion analysis of the authors it has been stated that outsourcing has
numerous benefits and drawbacks over the operations of business, However the writers
represents that the outsourcing is applied by the businesses for reducing cost and streamline the
efficiency of work, but the discussion of the concept determines that businesses are applying
outsourcing at their key strategy for expansion of business at wider level. Outsourcing is
effective in developing the coverage area of organisational operations that could beneficial for
them in attaining higher profitability by providing more effective customer facilities. MTN
Group Ltd has outsource its operations through implementing different call centres and outsource
experienced employees for the purpose of providing effective services to their customers.
According to the detailed analysis of the aspect of outsourcing it has been determined that
outsourcing is beneficial for the business in terms of attaining higher growth and success and the
key demarit of outsourcing is that it is some how cost consuming in nature, so it is required for a
business to implement an effective plan at the time of outsourcing its business in respect to
success of the plan and attain benefits.
The influence of outsourcing on the business performance of MTN Group
Limited.
As per the views expressed by Lfedapo Adeleye, 2011, Businesses in each segment
around the globe in the last few decades have significantly concern over turned to outsourcing,
thus it considered to be the major strategic step taken by the business to execution of business in
systematic manner. The internationalisation or externalisation of organisational activities are
traditionally performed in house in an attempt to enhance the competitiveness and develop
business operations and performance. In the present business environment, outsourcing is
considered as a centre strategy for the organisational change and development. In the
organisational context, the process of businesses and structural modification preceded through
radical alteration that based on the ground work for business process re-engineering. The present
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business trends are moving towards the aspect of realistic corporations that are based on the
relationships, co-operation and strategic business partnerships among several firms. The creation
of such sort of human states often begins with the determination and utilization of the concept of
core competences, in a manner which are effective in providing advantages that are beneficial in
nature to the businesses. MTN Group Limited is a big telecommunication firm that has its global
organisational functions. MTN Group Limited is South Africa's leading telecommunication
operator company, which is majorly concerned on rendering GSM merchandise items and
internet facilities in respect to maintaining the sustainability within global market (Malik, and
Blumenfeld, 2012). The company has its operations in African, European and Asian countries.
The company is majorly providing telephone and networking facilities to their operators in order
to sustain them wider run of business functions. MTN group Limited is a large
telecommunication operator which has concern over outsourcing organisational functions for the
intention of attainment of higher recognition at market. The company maintain its operations in
Mauritius through the subsidiary of MTN International (Mauritius) Ltd. Strategic outsourcing
also defined to the outsourcing which it is aligned with the company’s long-term strategy.
However, outsourcing is a major strategic action which has to be taken by the businesses for the
major intention of achieving potential success and profitability. The benefits which a business
concern expect from strategic outsourcing involves attaining a gain in competitive advantage,
freeing up resources for core activities, market repositioning and market share. Outsourcing has
positive impact on the operations of MTN Group Limited, thus the strategic outsourcing provides
an effective path way to the firm to increase their operations by the help of making changes in
their technologies which may also resulted the firm towards reducing cost and attaining higher
growth and success. The performance of MTN Group Limited has enhanced through the
execution of outsourcing operations. The strategic step of outsourcing helps the firm in
implementing good relationship with other outsource businesses and countries which develops
advantage for a business to achieving higher profitability and maturation.
The discussion of authors regarding the aspect of the impact of outsourcing over the
business performance of MTN Group Ltd. It has been signifies that outsourcing has positive
impact over the operations of MTN Group limited, Thus organisation has attained numerious
benefits through outsource of business operations like company has attain more profitability,
wider customers range, effective brand image, the focus of business on core activities are also
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increased. Outsourcing is a strategic step taken by the business to attaining growth and success,
but some time there are numerous factors that pushes a business to outsource their operations
like Global Reach, Attainment of cost benefit, Maintaining specialisation of operations,
Avoidance of unnecessary efforts etc. Outsource is also works for developing the competition of
business within market in respect to attaining significant profitability by enhancing competition
for its rivals.
The measures to overcome the challenges faced by MTN Group Limited
during outsourcing.
As per the opinion of Volber, 2018, In the past few decades’ organisations has decide to
outsource various aspects of their businesses for effective functions of a business. In the modern
business scenario businesses are not seems to be perfect on each sort of operations. However
organisations are concern over outsourcing their operations for increasing awareness among the
customers regarding their offered products and services and this also advantageous for the firm
in capturing a wider area to attain success and growth. Outsourcing is a vast concept which also
creates issues when an organisation first engages in actual outsourcing practices. MTN Group
Limited majorly direct at wider level and the primary focus of the business is to achieving
significant growth and success through the proper execution of outsourcing operations.
Outsourcing strategy defines how businesses are interconnected with the outsource partners and
how the organisations are operated within the operations, systems and processes of management
(Musau, 2016). It basically enables a business to encourage the alignment of organisation and
Information Technology (IT) substructure in respect to derive the higher benefit from their
investments in technology.
The MTN Group is the most primal rising industry operator which offers conjunctive
subscribers in around 22 states or regions in Africa and the Middle East. The company majorly
turned voice, data and internet services, cloud services, machine-readable monitoring
technology, mobile money, as well as various other mobile services (involving m Health,
mEducation and mInsurance). Companies wide product range make the company more unique
and leading. MTN is catalogued on the JSE Limited in South Africa under the share code
“MTN”. In the year of 2014, MTN had over 223 million subscribers around its trading
operations in Afghanistan, Benin, Botswana, Cameroon, Cyprus, Ghana, Guinea-Bissau, Guinea
Republic, Iran, Ivory Coast, Liberia, Nigeria, Republic of Congo (Congo-Brazzaville), Rwanda,
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South Africa, Sudan, South Sudan, Swaziland, Syria, Uganda, Yemen and Zambia. As a large
telecommunication operator, company majorly operates its global business functions through the
help of its subsidiaries which may resulted the business in achieving competitive position. The
company outsource its business operations through its subsidiaries, this is the best way to put
organisational presences in a new area. The company has faces various challenges while
outsourcing operations like expectation, culture, Cost Margins etc. The company has taken
various steps to overcome the issues in which some potentials are associated as below:
Process Adjustments: This is the best way to manage operations of firm in effective
manner. MTN Group Limited has set up new procedure of working in respect to reducing the
issue of work flow. However, an appropriate set up for execution of operations are effective in
developing the moral and working ability of people within the work place.
Proper setup of Agreement: This is the best way to overcome the issue of outsourcing,
thus as a large business enterprise, MTN Group Limited is majorly concern over increasing its
outsourcing operations in respect to increasing its operations and function but it may create
multiple issue for the firm in smooth functioning of operations, security of data and
confidentiality of information.
For overcome with such kind of issues organisation is concern over developing a good
agreement with outsource company in order to better performance of business operations and
function. In the agreement, MTN Group Limited has provided each norm and policies which are
necessary to be performed through the organisations in order to reducing the chances of errors
while implementation of outsourcing operations (Mutua and Gichure, Mutunga, 2017).
Decision Right and Authority: This is also a best measure to reducing the issue of
outsourcing, thus MTN Group Limited has keep the authority of taken decision in regards to the
operations of firm in respect to reducing the chances of issues that are taken place while the
implementation of the operations of outsourcing. This may reduce the chance of interruption of
others which create benefit for the firm in taken up effective decision for betterment of business.
Conclusion
Outsourcing is a practice of using outside the organisation to handle work in a normal
manner that performed within firm. It is one of the great option for those which make the process
of work easier to handle. It is helpful for the organisations to be competitive in international
market. It allows them to sell into foreign markets with the overseas branches. It is strategic use
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of the outside resources in order to perform the activities which are mainly handled through
internal staff as well as resources. With the help of using well managed outsourcing agreement,
MTN Group Limited can easily operate its operations within market in effective manner. Mainly,
impact of the outsourcing on business of MTN Group Limited is positive. Mainly, reason to
outsource is to cut costs and reaping advantages of the strategic outsourcing. For an instance:
minimizing overhead, enhance efficiency, recruit skilled expertise, minimise turnaround time
and also generate the higher profit. The outsourcing is undertaken to give competitive benefits to
MTN Group Limited through delegating the process of business to the external agencies and also
make innovation in its business. The outsourcing helps in minimize the recruitment as well as
operational costs.
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Research Methodology
Research methodology is considered as the most basic piece of an examination work,
along these lines it assumes a successful obligation in giving a precise bearing to the researcher
to complete the work in right way. This additionally defines as the procedure which is utilized by
researcher to accumulate information and data to draw substantial and solid result (Njagi, 2017).
Research methodology comprises of systematized step that help an agent of the investigation
towards the right way in regard to tending to the issue in legitimate way. In the given section of
dissertation detailed evaluation has been conducted with respect to the antithetic sort of research
tools and methods that are connected by the researcher so as to accomplish the confined
destinations of the present exploration work has been given. What's more, in the given piece of
approach a suitable legitimization has additionally been made as for the techniques that are being
picked through the examiner in regard to execute the research in a legitimate manner. This is the
portion of examination essentially manages the use of various tools and methods to complete the
present research in appropriate way. This part of investigation involves various tools that are
effective in providing support to the work in right manner some key aspects are type of
investigation, research design, approach, philosophy, data collection tools, analysis tool,
sampling etc. (Nyamai, Ouma and Osida, 2017). This all perspectives are altogether work to
offer help to the examination in reasonable way.
Type of Investigation:
The essential thought of an investigator is to choose the most reasonable sort of research
in regard to do the work in right way. An exploration is significantly founded on two key angles
one is qualitative and other one is quantitative in nature, in this way the determination of
research type depends on the information aggregated by the researcher. An exploration is either
qualitative or quantitative in nature. The qualitative research is fundamentally comprising on the
information amassed through qualitative methods, in this manner this source is viable in building
up an in-depth knowledge base by accumulation of information from qualitative means (Olanya,
2013). An examination is said to be qualitative in the nature when an exploration significantly
manages human points of view and sentiments. On the opposite side, quantitative research
depends on the utilization of quantitative information which are assembled as measurable data.
An examination is known to be quantitative for the situation when it essentially manages
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investigation of numerical statistical data points as in this data are significantly founded on
numerical perspectives. The considered investigation here with significantly dependent on the
investigation of the Impact of Outsourcing on an Organization. In this, qualitative research type
is connected by the researcher with the end goal of collection of important and viable
information.
Research Design:
Research design is outlined as a well planned set of procedure which is used in
accumulating or analysing the measures of variables that are predetermined in the chosen area of
work. Research design is basically works as the blue print of the investigation which
significantly provide specification to the research method selection. This section of methodology
emphasises on three major aspects i.e. descriptive, exploratory and experimental investigation
design, thus the appropriate recognition of design is required to carry out the work in proper way
(Olanya, 2012). The descriptive research design is majorly based on representing investigation
by in-depth analysis of available information and illustration and exploratory on the other side
based on developing some new idea or model that are related with a chosen area of study.
Furthermore, experimental research design includes scientific or mathematical evaluation for
creating and rendering definite theory that are connected with the specified area of work. The
selected area of research deals with the influence of outsourcing over the operations and
performance of an organisation. In this present research, descriptive is the selected design as it is
widely effective tool for qualitative investigation and significantly based on the execution of
detailed investigation.
Research Approach:
Research approach is defined as an arrangement and technique which comprises of the
means of wide presumptions to point by point strategy for information gathering, investigation
and elucidation. This part is significantly including on two noteworthy viewpoints like inductive
and deductive research approach. Deductive methodology is demonstrated by the making of
theory as in this outcomes are acquired through directing investigation over the accessible
statistical data points (Rweikiza, 2013). On the opposite way, inductive investigation approach is
emphasising on detailed investigation on the existing facts and figures, thus in this as per the
observation of the project certain patterns are develops. This approach is basically based on the
creation of theories through the help of tentative hypothesis. In the present investigation work,
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inductive research approach is most applicable tool thus it is most effective aspect for execution
of qualitative research as in this theories are prepared on the basis of hypothesis that supports the
overall work in proper manner.
Research Philosophy:
Research philosophy is considered to be the most valuable aspect of research
methodology thus this part is determined as a content form which is precede on aspect of
investigator for execution of exploration activities. This section is emphasising on two aspects
such as positivism and interpritivism research philosophy. In interpritivism philosophy,
investigator is concern over adoption of qualitative information in respect to conducting an in-
depth evaluation and on the other side positivism philosophy is mainly applied in the scientific
research where the overall work is based on statistical or mathematical aspects. In the chosen
area of work interpritivism philosophy has been taken into prior action through the investigator
thus it is most effective methodology for execution of qualitative investigation as in this data is
majorly accumulated by evaluating the views and perspective of multiple authors and writers.
Data Collection Methods:
In the execution of an research work information gathering is the most reasonable
viewpoint along these lines in this amassing of information and data depends on two critical
perspective like primary and secondary tools of information accumulation. The primary research
is directed with the end goal of aggregation of the information which is accumulated for the
absolute first time and especially new for a specific region of research, accordingly in this
information is for the most part assembled through interview, survey, observation and focus
group (Silvestrin, 2017). On the opposite side secondary research is directed for aggregation of
information through books, journals, published research articles and so on. This part is powerful
in execution of theoretical structure to help the investigation in proper manner. In this present
research work both primary and secondary tools are connected by the researcher, as primary
sources are connected to directing a study with the assistance of questionnaire, additionally in
this survey is filled by the chose respondents who are having thought concerning the picked
region of study. Despite what might be expected secondary sources are accustomed to leading
the area of writing survey by the help of writers perspectives.
Data Collection tools:
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The considered project is based on the evaluation of the impact of outsourcing on the
operations of business at global level. In this present area of work information is basically
gathered from qualitative aspects as in this primary and secondary tools are applied to drawing
valid and reliable outcome. In this current area of work thematic analysis applied by the
researcher as it is most suitable tool that helps the investigator in accumulation of relevant data.
In this present area of study interview has also being conducted to accumulating more
effective information that supports the work in right manner. In this interview is conducted with
manager, thus manager of the firm is selected to gather actual and accurate information.
Data Sampling:
Data sampling is encompassing on accumulation of data from the population, in this
section sample is arises throughout the actual population. This section is emphasising on
probabilistic and non-probabilistic data sampling tools (Sutton and Olomi, 2012). In the chosen
area of study data has been accumulated by random method which is the significant part of non-
probabilistic tools, thus in this data has been accumulated by random people as in this selected
responsive are the employees of the organisation as they are very much effective in providing
relevant and reliable information. In this sample size of 40 respondents has been chose for carry
out the exploration content in positive way.
Ethical issue:
This considered as the highly essential feature of a research work, it is essential for the
investigator to execute investigation in liable way through following the ethics and norms of
research. The key role of the research is to make sure their responsive in regards to the security
and safety of their personal data, thus confidentiality requires to be maintained, thus it is required
for the research to make sure that the individualized information of respondents is safe and never
be used in unauthorised manner. Researcher should also ensure their respondents that not any
kind of private data is asked which may affect the emotion and sentiments of people (TOGOHM,
2013). The researcher also requires to concern over the path through which aims and objectives
are attained for creating actual and fact-full results. In an investigation work researcher is the
only who is responsible for executing the work in suitable mode to attaining at the key results
and for this it is also essential for the investigator to design a time frame in which all activities
are executed as per the priority of the task. Researcher should also gather information from
authentic sources in respect to providing justified support to the work.
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Validity and Reliability
At the time of conducting an exploration work the key consideration of the researcher is
to properly analyse the aim and objectives of the research in respect to drawing valid and reliable
outcome. Validity and reliability are two different aspects which works separately for an
investigation. Reliability is referring as a measure of stability or consistency of test scores.
Reliability is defined to the extent to which assessment are consistent. For the purpose of
reaching at the criteria for validity, the investigator requires to gather information from authentic
sources. on the other side a research is proved to be valid when reliable and valid results are
obtained. Validity has shown the actual validity of the research thus in this the judgement has
been given on the basis of the authenticity of data (Vögel, 2014). A research is reliable when
positive outcome has been drawn in any situation. Validity and reliability of research is majorly
based on the outcome of the research, thus the suitable tools and methodologies are used for the
purpose of executing investigation work in right manner. The selected area of research is said to
be valid and reliable hence suitable study has been conducted and proper outcome is being
drawn.
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Data Analysis, Results and discussion
This is also another crucial aspect of an exploration activity thus it plays an effectual role
in analysing the data and information for the intention of movement at the accurate outcome.
This section plays imperative part in providing valid and reliable outcome. In an investigation
work it is prominent for the researcher to evaluate the accumulated information for the purpose
of creating accurate outcome which support the investigation in evaluation of the issue in proper
manner (Wahome, 2017). In the chosen area of investigation work Thematic analysis is
considered through the investigator thus it is the most viable tool to providing suityable analysis
over the research issue. Moreover in thematic analysis themes are developed that are connected
to the research questions that are included in questionnaire, thus this part provides a direct
analysis on research issue. This section of research depend over primary as well as secondary
sources, thus primary source is gathered through developing a questions as in this data has been
analysed through thematic analysis. On the contrary discussion also being made on the literature
review, thus proper outcome can be drawn through analysing primary as well as secondary
information in proper manner.
Questionnaire
Q1) Are you aware about the concept of Outsourcing in the context of
business?
Frequency
Yes 36
No 4
Q2) Do you think that outsourcing will impact on productivity of MNT Group
Ltd.?
Frequency
Yes 37
No 1
Neutral 2
Q3) According to you, if outsourcing the business will prove beneficial for
MNT Group Ltd.?
Frequency
Agree 37
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Disagree 3
Q4) What are the major factors that pushes a business to outsource their
operations?
Frequency
Global Reach 12
Attainment of cost benefit 8
Maintaining specialisation of operations 10
Avoidance of unnecessary efforts 10
Q5) What are the key benefits of conducting outsource business operations? Frequency
Improve focus on core business activities 13
Increased Efficiency 12
Controlled Cost 15
Q6) What are the major drawbacks of outsourcing operations of a business? Frequency
Hidden Cost 15
Security Risk 10
Reduction in quality Control 15
Q7) What major benefits attained by MTN Group Limited through outsourcing
operations of firm?
Frequency
Get Access to skilled expertise 8
Focus of core activities 12
Better risk management 10
Saving cost 10
Q8) Which kind of influence outsourcing does have over the operations of
MTN Group Limited?
Frequency
Positive 30
Negative 4
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Neutral 6
Q9) What measures are used by MTN Group Limited to overcome the
challenges faced during outsourcing?
Frequency
Process Adjustments 15
Proper setup of Agreement 10
Decision Right and Authority 15
Q10) According to you MTN Group Limited is benefited by its outsourcing
business operations?
Frequency
Yes 36
No 4
Q11) What is the main effect of outsourcing on cost efficiency of MNT Group
Ltd.?
Frequency
Cost reduction 15
Saving labour cost 15
Convert fixed cost into variable cost 10
Q12) What are the main effect of outsourcing on profitability of MNT Group
Ltd.?
Frequency
Value enhancement 12
Increasing competition 18
Enhance profitability margin 10
Q13) What are the ways by which MNT Group Ltd. can enjoy the benefits of
outsourcing?
Frequency
Economise the production cost 14
Making improvement in HR practices 13
Optimise the available resources 13
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Q14) Provide recommendation to MTN Group Limited for developing the
business operations in respect to attaining competitive edge.
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Theme 1) People are aware about the concept of Outsourcing in the context of business.
Q1) Are you aware about the concept of Outsourcing in the context of
business?
Frequency
Yes 36
No 4
Interpretation:
According to the portrayal of the view of Smriti Chand as the concept analysis about
outsources, through the opinion of Smriti Chand it has been interpreted that 36 out of 40
individuals know about the idea of Outsourcing as it is the most fundamental perspective which
assumes basic job with regards to business. Anyway in the present current business time the key
rationale of every little just as enormous business undertakings is to achieving higher
development and accomplishment inside the business focus, in this way organizations are worry
over redistributing their activities in regard to accomplishing higher development and
achievement. Remaining individuals don't know about the idea of redistributing along these lines
they are not having any kind of close to home enthusiasm for respects to the equivalent.
26
36
4
Yes
No
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Theme 2) People think that outsourcing will impact on productivity of MNT Group Ltd.
Q2) Do you think that outsourcing will impact on productivity of MNT Group
Ltd.?
Frequency
Yes 37
No 1
Neutral 2
Interpretation:
According to the examination of the venture it has established that 37 out of 40
respondents said that outsourcing will impact on productivity of MNT Group Ltd as per their
opinion company will attained a higher position through outsource of their business operations.
They are in favour of the opinion expressed by Smriti Chand regrading the aspect of
outsourcing, 1 respondents is not in favour with the same as per their view outsourcing will not
impact on productivity of MNT Group Ltd. and remaining people are select the option of neutral
as they are nit providing any discussion on the same.
27
37
1
2
Yes
No
Neutral
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Theme 3) People think that, outsourcing the business will prove beneficial for MNT Group
Ltd.
Q3) According to you, if outsourcing the business will prove beneficial for
MNT Group Ltd.?
Frequency
Agree 37
Disagree 3
Interpretation:
The interpretation has been provided through the views analysed by Alika Cooper, 37 out
of 40 respondents are agree with this statement that outsourcing the business will prove
beneficial for MNT Group Ltd. as per the proper study of the view of Alika Cooper ,
outsourcing business will possibly beneficial for the business in attainment of growth and
success. 3 people are disagreeing with the same as they are not think that outsourcing and global
business are not contradictory aspect and affect each other.
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37
3
Agree
Disagree
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Theme 4) There are different factors that pushes a business to outsource their operations.
Q4) What are the major factors that pushes a business to outsource their
operations?
Frequency
Global Reach 12
Attainment of cost benefit 8
Maintaining specialisation of operations 10
Avoidance of unnecessary efforts 10
Interpretation:
From the overall analysis of the project it has been interpreted that 12 out of 40 people
said that global reach is the major factor that pushes a business to outsource their operations, thus
it is most essential aspect for which a business put efforts in attainment of growth and success.
The perspective has been provided after analysing the opinion of Mary Christine Galang, 2017,
Business now a days are work in competitive market and their are multiple factor that significant
pushes a business to outsource their operations for the purpose of attaining growth and success. 8
people are in favour of attainment of cost benefit, 10 people are go with maintaining
specialisation of operations and remaining people are in favour of avoidance of unnecessary
efforts.
29
12
8 10
10
Global Reach
Attainment of cost benefit
Maintaining specialisation of
operations
Avoidance of unnecessary
efforts
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Theme 5) There are different benefits of conducting outsource business operations.
Q5) What are the key benefits of conducting outsource business operations? Frequency
Improve focus on core business activities 13
Increased Efficiency 12
Controlled Cost 15
Interpretation:
According to the detailed analysis of the project it has been represents that There are
different benefits of conducting outsource business operations. as per the views analysis of James
Buck, 13 out of 40 respondents are in favour of improve focus on core business activities, thus
this consist to be the core of business to attain sustainability within market place. 12 people are
in favour of increased efficiency and remaining people are go with controlled cost.
31
13
12
15
Improve focus on core
business activities
Increased Efficiency
Controlled Cost
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Theme 6) There are various drawbacks of outsourcing operations of a business.
Q6) What are the major drawbacks of outsourcing operations of a business? Frequency
Hidden Cost 15
Security Risk 10
Reduction in quality Control 15
Interpretation:
As per the overall analysis of the chart it has been interpreted that there are various
drawbacks of outsourcing operations of a business. 15 out of 40 responded said that hidden cost
is the major disadvantage of outsourcing business operations, The views has has been provided
through the discussion analysed by James Buck in the above mentioned sections. 10 people are
in favour of security risk and remaining people are go with reduction in quality control.
32
15
10
15
Hidden Cost
Security Risk
Reduction in quality Control
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Theme 7) There are various benefits attained by MTN Group Limited through outsourcing
operations of firm.
Q7) What major benefits attained by MTN Group Limited through outsourcing
operations of firm?
Frequency
Get Access to skilled expertise 8
Focus of core activities 12
Better risk management 10
Saving cost 10
Interpretation:
According to the detailed evaluation of the survey report it has been analysed that 8 out
of 40 people said that get access to the skilled experts is the major benefit which is attained by
MTN Group Limited through outsourcing, 12 people are in favour of focus on core activities of
MTN Group Limited has enhanced, 10 people go with better risk management and remaining
people are in favour of saving cost.
33
8
12 10
10
Get Access to skilled
expertise
Focus of core activities
Better risk management
Saving cost
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Theme 8) Outsourcing have positive influence over the operations of MTN Group limited.
Q8) Which kind of influence outsourcing does have over the operations of
MTN Group limited?
Frequency
Positive 30
Negative 4
Neutral 6
Interpretation:
From the provided discussion on the selected area of issue it has been determined that 30
out of 40 people are said that Outsourcing has positive influence over the operations of MTN
Group Limited, thus outsourcing is effective for the firm in attainment of higher growth by
expansion of business in a new geographical area. 4 people are go with negative influence as per
their opinion outsourcing has negative impact over the growth of MTN Group Limited and
remaining people are neutral about the same.
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30
4
6
Positive
Negative
Neutral
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Theme 9) There are different measures that are used by MTN Group Limited to overcome the
challenges faced during outsourcing.
Q9) What measures are used by MTN Group Limited to overcome the
challenges faced during outsourcing?
Frequency
Process Adjustments 15
Proper setup of Agreement 10
Decision Right and Authority 15
Interpretation:
From the in-depth analysis of the project it has been evaluated that there are different
measures that are used by MTN Group Limited to overcome the challenges faced during
outsourcing. 15 out of 40 people said that process adjustment is the key measure that is used by
MTN Group Limited to overcome the challenges faced during outsourcing, the opinion has
provided by the view analysis of Volber and 10 people are in favour of proper setup of
agreement and remaining people are go with decision right and authority.
35
15
10
15
Process Adjustments
Proper setup of Agreement
Decision Right and Authority
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Theme 10) MTN Group Limited is benefited by its outsourcing business operations.
Q10) According to you MTN Group Limited is benefited by its outsourcing
business operations?
Frequency
Yes 36
No 4
Interpretation:
The above mentioned graph represents that 36 out of 40 people are in favour with this
statement that MTN Group Limited is benefited by its outsourcing business operations as
company has attained various benefits in controlling cost, managing risk, proper management of
resources etc. This analysis has been provided through the opinion analysis of Bick, Luiz and
Townsend, Remaining people are not in favour with the same as per their opinion MTN Group
Limited is not much benefited through its outsourcing operations.
36
36
4
Yes
No
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Theme 11: There are different effect of outsourcing on cost efficiency of MNT Group Ltd.
Q11) What is the main effect of outsourcing on cost efficiency of MNT Group
Ltd.?
Frequency
Cost reduction 15
Saving labour cost 15
Convert fixed cost into variable cost 10
37
15
15
10
Cost reduction
Saving labour cost
Convert fixed cost into variable
cost
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Interpretation:
As per the description of the above mentioned chart it has been evaluated that there are
different effect of outsourcing on cost efficiency of MNT Group Ltd. 15 out of 40 people are go
with the option cost reduction, thus according to the above mentioned discussion of James Buck,
cost reduction is considered to be the major effect of outsourcing. 15 people are go with saving
labour cost and remaining are go with convert fixed cost into variable cost.
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Theme 12: There are various effect of outsourcing on profitability of MNT Group Ltd.
Q12) What are the main effect of outsourcing on profitability of MNT Group
Ltd.?
Frequency
Value enhancement 12
Increasing competition 18
Enhance profitability margin 10
39
12
18
10
Value enhancement
Increasing competition
Enhance profitability margin
Document Page
Interpretation:
From the discussion of the above mentioned project it has been evaluated that there are
various effect of outsourcing on profitability of MNT Group Ltd. 12 out of 40 people are in
favour of value enhancement as per the opinion of Lfedapo Adeleye value enhancement is the
key benefit attained by MNT Group by the effect of outsourcing. 18 people are in favour of
increasing competition and remaining people are in favour of enhance profitability margins.
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Theme 13: There are different ways by which MNT Group Ltd. can enjoy the benefits of
outsourcing.
Q13) What are the ways by which MNT Group Ltd. can enjoy the benefits of
outsourcing?
Frequency
Economise the production cost 14
Making improvement in HR practices 13
Optimise the available resources 13
41
14
13
13
Economise the production cost
Making improvement in HR
practices
Optimise the available
resources
Document Page
Interpretation:
From the description of the above mentioned graph it has been interpreted that there are
different ways by which MNT Group Ltd. can enjoy the benefits of outsourcing. As per the
views of Volber, 14 out of 40 people are in favour of economies the production cost, 13 people
are go with making improvement in HR practices and remaining people are go with optimise the
available resources.
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Interview
This is also an another effective tool for analysis of information in effective manner, thus
in this a personal session is executed and questions are asked to satisfying the requirement of the
study. In the present research work interview is conducted to accumulate more reliable
information and in this questions are asked by the manager of the firm, as manager is more liable
in providing fact-full information regrading the operations of the firm.
Interview
Q1) How important it is for a business to focus on key operations?
Q2) What can be the major reason for a business to outsource their operations?
Q3) What do you think their can be any alternative for outsourcing?
Q4) Do you think, outsourcing promotes productivity and profitability?
Q5) Do you think that there can be any drawbacks for outsourcing and how these can be
minimised?
Interviewer 1) How important it is for a business to focus on key operations?
Manager: As per the view of manager, it is essential for a business to be focused towards the
key operations of a business, thus this is effective in attainment of growth and success. Manager
determines that,. the growth and progression of a business is based on effective implementation
of its key operations. Thus they focus of the organisation is to proper execution of its key
operations in respect to attaining higher growth and success.
Interviewer 2) What can be the major reason for a business to outsource their operations?
Manager: The analysis over, what can be the major reason for a business to outsource their
operations conducted to determine the major causes and the manager of the firm has provide
opinion that there are multiple reasons for like competition, organisational target to enhance
profitability, wider market reach, cutting down the cost etc. for which a business has planned to
outsource their operation. Outsourcing is effective in providing a wider platform to the
businesses to outsource its operations and achieving growth and success.
Interviewer 3) What do you think their can be any alternative for outsourcing?
Manager: Outsourcing is an effective tool which is widely applied by business as their key
strategic step to attain more profitability and benefit. A question asked to the manager that there
can be any alternative of outsourcing in a business. Manager provides description on that,
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outsourcing is the best aspect that plays effective role in growth and development of business at
wider level. In the context of business scenario outsourcing is used as the major strategic step to
explore the operations of firm at wider level. Outsourcing is effective in expansion of business at
wider level and efficient in reducing cost of production.
Interviewer 4) Do you think, outsourcing promotes productivity and profitability?
Manager: The manager provides acceptance of the statement that outsourcing promotes
productivity and profitability of the firm, thus outsourcing is effective for the firm in outsource
their operations at wider level and attain significant benefits by achieving their business targets.
With the of outsourcing MTN group Limited has expand their business through its call centres
and fulfilling the desires of people at wider scale. This also create value in attainment of higher
profitability via success of wider business operations and effective outsourcing of organisational
activities.
Interviewer 5) Do you think that there can be any drawbacks for outsourcing and how these can
be minimised?
Manager: The manager determines that there are different drawbacks of outsourcing like Hidden
Cost, Security Risk, Reduction in quality Control, these are having huge impact over the growth
and profitability of the firm. The key focus of the firm is to reducing the issues in respect to
attaininment of higher growth and success at market place. There are multiple measures that re
effective in minimising the drawbacks of outsourcing like Process Adjustments, Proper setup of
Agreement, Decision Right and Authority etc. These are effective in overcome with the issue of
outsourcing.
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Discussion
The concept of Outsourcing in the context of business.
From the general examination of the task it has been talked about that Outsourcing is
defined as a basic perspective which depends on the act of contracting for administrations from
an outside substance while holding command over business resources and oversight of the
administrations being redistributed. In business terms re-appropriating plays out an essential job
in development and improvement of business through leading proper strategic approaches.
Redistributing is considered as a successful key advance which can be pick by little just as
enormous business undertakings which are works at global level. In the present current business
time rivalry inside market is high and the key thought of business is to achieving higher
development and accomplishment inside commercial centre. Organisations are focused on using
outsourcing strategy thus it is effectual in rendering various benefits to the businesses like
reduction in cost, effective management of resources, suitable use of assets etc. Outsourcing is
effective in providing suitable path way to the organisations to grow their organisational
functions at wider scale. Outsourcing majorly helps a business in enhancing the growth and
brand image of firm which create value in development of international operations of a business.
The benefits and drawbacks of Outsourcing.
According to the detailed evaluation of the investigation it has been discussed that
organisations, in today's competitive organisational era the key concern of the firm is achieving
competitive position by developing their enterprise operations at wider scale. Internalisation of
business operations are benefited for the business in achievement of significant profit and wide
market reach, which cause benefit in attainment of competitive edge. Outsourcing is recognised
as the process which mainly includes enlisting products and services through outside of the
business, thus in this organisations are approaching other operators to conduct their global
business operations in respect to achieving higher growth and success. Outsourcing is basically
ascertained as an effectual business strategy that plays a critical role in assisting the
organisational functions, processes, activities and decision responsibilities from the internal
management to the outside providers. Outsourcing has various importance like improving
organisational focus on core business operations which might be effective in smooth working of
business operations. Outsourcing is also effective in increasing efficiency, however business
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firms are developing opportunities within market through outsource their business operations
which create benefit for the firm in attaining huge monitory benefits through capturing a wide
area by efficiently managing business operations. The another benefit of outsourcing is
controlling business cost which is the most important aspect for a business attaining benefits in
term of profitability. Outsourcing also has various drawbacks like it incurred hidden cost,
security risk and reduction in quality control etc. These are the major drawbacks of outsourcing
which has huge impact over the operations of business.
The influence of outsourcing on the business performance of MTN Group
Limited.
As per the in-depth evaluation of the research it has been analysed that organisations now
a day's are significant concern over opting outsourcing business operations in order to moving
ahead in significant manner. In the context of business outsourcing is considered as the potential
strategic step which has positive impact over controlling business operations and proper
management of organisational resources. MTN Group Limited is a large multinational
telecommunication service provider organisation which operates in telecommunication services,
GSM products and internet facilities and the key motive of the firm is to significant advantage
within market place by improvising its offerings as per the changing preferences and needs of
buyers. Outsourcing has positive influence on the operations of MTN Group Limited, thus as a
large telecommunication provider company outsourcing provides a wide area to the organisation
to expand its organisational functions at market place. The performance of MTN Group Limited
has increased by the execution of outsourcing operations. The strategic step of outsourcing helps
the firm in implementing good relationship with other outsource businesses and countries.
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Conclusion and Recommendation
Conclusion
As per the in-depth evaluation of the study it has been identifies that outsourcing has
positive impact over the increasing performance and operations of businesses, thus it is effective
in reducing cost, increase access to new and advance technology, emergence of new expertise,
core competence concentration, fast implementation of operations, fast service delivery and
higher profitability. However, the rate of business performance as an outcome of outsourcing is
high in both long and short term businesses operations and business executives are committed to
attach their success to outsourcing processes. The potential intention of the project is to analyse
the influence of outsourcing on an organisations execution. A case study on MTN Group
Limited. The study was assisted through the research aim and objectives, thus the overall work
of research is based on the issue mentioned in aim and objectives. The in-depth discussion
regarding the aspect of outsourcing is effective in analysing the potential impact of outsourcing
on the business operations of MTN Group Limited. The company operates at large level and
widely concern over enhancing its operations at global level. The company significantly
applying the strategic step of outsourcing in respect to developing the operations of firm in
effective manner.
From the general evaluation of the project it has been discussed that Outsourcing is
insinuates as a fundamental viewpoint which relies upon the demonstration of contracting for
organizations from an outside substance while holding direction over business assets and
oversight of the organizations being redistributed. In business terms re-appropriating plays out a
fundamental employment being developed and improvement of business through driving
legitimate vital methodologies. Redistributing is considered as a fruitful key development which
can be pick by minimal similarly as gigantic business attempts which are works at worldwide
level. In the present current business time competition inside market is high and the key idea of
business is to accomplishing higher advancement and achievement inside business focus.
The study has also found that the cost is considered as the key aspect of driving
outsourcing in an organisation. The study also determined that the aspect of outsourcing is
effective in cutting down the cost of operation and managing organisational risk in appropriate
manner. Finally, the study represents that the need to concern over the core competencies, which
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recognised as the key reason for that organisations are chose to outsource business operations.
The study also found that outsourcing has majorly enabled an organisation to concentrate over its
key capacities and resources on developing and expanding organisation core competencies, thus
this may lead to the firm in betterment of organisational operations by attainment of competitive
advantage. However, proper strategic outsourcing assists the firm towards improving
performance in terms of increased profitability, market share, customer satisfaction and sales
growth.
Recommendation
The investigation in to actual action is depend on the evaluation of the impact of
outsourcing over the operations of an organisation. As per the in-depth discussion of the
dissertation it has been recommended that it is important for each size of business enterprises to
adopt outsourcing in order to proper execution of organisational operations at wider basis. As a
large and well reputed Telecommunication company MTN Group Limited should adopt strategic
and well thought out outsourcing partnership or agreement in respect to continuous reduction in
operations cost for the purpose of developing profitability and maturation. The company should
also focus over the performance of outsourcing companies in respect to better selection of
partnership which may lead the firm towards attainment of higher growth and success.
Company should also operate its international operations by the help of its subsidiaries,
thus the business expansion through subsidiaries are effectual in processing the transaction of the
business at higher basis. Organisation should also have concern over its subsidiaries in respect to
smooth functioning of operations.
The present area of study also recommends that organization should intelligibly analyse
their core competencies from the non-core operations in respect to setting up an aim which can
be followed by the firm as their major target. It is also necessary for the business to review the
potential welfare which are requires to be gained if the non-core operations are outsourced.
However, this is effective for the firm in attainment of higher growth and success within market
and provide higher competition to their rivals and the Core competencies can never be
outsourced.
Organisations should also establish a partnership with the service providers to set up an
efficient tool to determine the performance in which business requirements should be matched
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with the execution process by identifying new skills, abilities and knowledge for each project,
thus, it motivates businesses to obtain front-edge outsourcing.
According to the views analysis of the respondents, as the people think that outsourcing
is widely effective for the growth and progression of MTN Group Ltd in terms of developing
their operations and function. From the opinion analysis of the respondents it has been
recommended that, in the market competition within businesses are so high and the as a large
multinational telecommunication brand MTN Group Should use various measures like process
adjustment, proper setup of agreement and decision right and authority as to addressing the
issues and challenges that are faced by firm during outsourcing of business operations. However
outsourcing is resulted in attainment of higher growth and success for the firm, thus as to
achieving more success and benefits of outsourcing, people suggest that company should apply
different ways like economies the production cost, making improvement in HR policies and
optimise the available resources. Furthermore these all are effective for the firm in attainment of
suitable advantages within market place.
From the views analysis of the manager it has been recommended that the key motive of
each business is to attaining higher growth and success at market place through properly
execution of organisational operations and functions. The company has its world wide operations
so they should conduct effective outsourcing operations for implementation of better relationship
with customers and other business organisations. Thus this create value for the firm in attainment
of higher growth and success at market place.
From the detailed analysis of the project it has been recommended that outsourcing has
positive impact over the operations of an organisation. This study is effective for the researcher
in personal as well as professional basis, thus the selected area of study has wider scope in
development of knowledge regarding the chosen area of work. From the analysis of the project it
has been suggested that researcher should conduct deep analysis for exploring the idea regarding
the area of outsourcing and how it is effective for the firm in attainment of growth and success.
MTN Group Ltd is a large telecommunication multinational company which has its wide
operations and from the deep analysis of the dissertation it has been suggested that company
should outsource those operations which are creating benefits in monetary terms, thus this create
advantage for the firm in attaining higher growth within market. Company should also analyse th
market in which they want to outsource their operations, thus suitable market selection is
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required for the growth and development of outsourcing operations. As a large
telecommunication services provider MTN Group should be focuses towards creating an
appropriate administration plan in respect to systematic execution of operations. The firm should
also develop effective time schedule in which proper timing allotted to the each operations, thus
this could be beneficial in systematic implementation of resources. Companies should also
choose a Managed Service Provider which is known as MSP to supply and manage their
contingency workforce, and pull off other outsourcing tasks. MSPs bring new efficiency to the
selection and management of providers of outsourcing services and independent contractors.
Company should outsource their secondary operations as this way they will get the better quality
output to use in their own operations as quality of services and products of firm will be better as
they are only indulger in that particular operation.
Area for further work
The acknowledged research is depend of the evaluation of analysing the impact of
outsourcing over the operations of businesses. This study has future benefits for the people who
are interested within the similar area of industry and the businesses which are deals in similar
field. This study assists an individual and investigator in execution of similar area of study in
proper way. This study explores the skills and idea base of people who are interested in the area
of outsourcing and its aspects. This study also provides an in-depth analysis to the businesses
whichever plan to outsource their business operations in respect to reducing extra cost and
achieving significant position within market.
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