Offshoring/Outsourcing: Benefits and Risks Analysis of Lebara

This report examines the benefits and risks associated with offshoring and outsourcing strategies, using Lebara, a UK-based telecommunications company, as a case study. The introduction highlights the increasing importance of these strategies for businesses seeking to compete effectively in the global marketplace. The report explores the concepts of offshoring and outsourcing, defining them within the context of today's competitive landscape. It investigates the advantages of these approaches for Lebara, such as market expansion and cost reduction, while also identifying the challenges, including cultural differences and communication barriers. The research methodology incorporates both primary and secondary data collection methods, including questionnaires and literature reviews. The report aims to provide a comprehensive understanding of the impact of offshoring and outsourcing on Lebara's operations and offers insights into how the company can leverage these strategies to achieve sustainable profitability and a competitive edge. The report also includes a Gantt chart and references to support the analysis.

Research Project

Table of Contents
TOPIC..............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
REFERENCES................................................................................................................................5

TOPIC
“The benefits and the risk of offshoring and outsourcing”.- Case Study on Lebara
INTRODUCTION
Today's the growth drivers are often more strategic and mainly focus on carrying out
value added activities which impose intense level of competition and challenge over organisation
in accomplishing their goal in an efficacious and expeditious manner. To survive within
competitive marketplace for longer period of time, an establishment requires to acquire various
advanced techniques which lead them to improve their sales performance. However, outsourcing
and offshoring are the two techniques which is regarded as one of the powerful determinant that
assist company to expand their market share or size in an trenchant manner (Bailey and De
Propris, 2014). Hence, outsourcing refers to delegation of regular business processes to any third
organisation which is done by utilising money, manpower, time and other core activities of
business. While offshoring relates to where establishment process or service are shifted or
relocated to some different country with an intent of acquiring benefit of lower cost. In context
of this report, it is based on Lebara which is a reputed and branded telecommunication firm
within UK industry. However, this project discuss about gain and challenges of offshoring and
outsourcing over company while functioning their process at global level.
Research Aim: To investigate the benefits as well as risk of offshoring and outsourcing over
Lebara in operating at global level.
Research Objective:
 To understand the concept of offshoring and outsourcing in today's competitive
marketplace.
 To identify the benefits of offshoring and outsourcing on Lebara while operating its
business function at international level.
 To determine the challenges of offshoring and outsourcing which Lebara come across
during operating at global level.
Research Question:
 What is the concept of offshoring and outsourcing in today's competitive marketplace?
 What are the benefits of offshoring and outsourcing on Lebara while operating its
business function at international level?
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 What are the challenges of offshoring and outsourcing which Lebara come across during
operating at global level?
Rationale
The main purpose of conducting this research is to understand the importance or value of
adopting offshoring and outsourcing into business operation and it's impact over organisation's
productivity. Along with this, to examine its positive and negative influence over Lebara while
acquiring advanced techniques for enlarging their market size at international pace. However,
this information enable Lebara to take corrective course of action in order to gain competitive
advantage and attain sustainable profitability.
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Literature Review
To understand the concept of offshoring and outsourcing in today's competitive marketplace.
As per the views of Cynthia Kroll, 2003, In current scenario of world, the concept of
globalisation plays a significant as it benefits them with several benefits like free trade of goods
and services, lower cost of operation, innovative or modern technology and many more.
However, outsourcing refers to those organisation in which they render their business process to
third part on contract base on the other hand offshoring getting the work done in different
country or region to leverage cost advantages (Difference Between Outsourcing and Offshoring,
2017). However, both the components contain its own benefits and drawbacks which influence
firm's decision making activities. It enable Lebara to expand their market division across the
globe without any obstacles as well as can acquire skilled labour in lower cost which enrich its
profit margin in an impressive manner. Additionally, this global tend of outsourcing in Lebara
company exhibit the decrease in overall cost as well as an increasing need for being more
competitive in international market. Furthermore, it has been evaluated from this study is that
adopting outsourcing technique by company help them to improve its workforce standards in
terms of knowledge, capability, innovation and creativeness for obtaining profit maximisation
within present market. Moreover, it help organisation to make use of innovative and advanced
recruitment techniques which help managers to identify the capability of each individual at the
stage of hiring a candidate in order to fill the vacant job position within its business function.
Along with this, it aid them to place each applied candidates in appropriate positions which
encourage personnel to put their best effort towards an accomplishments of organisational goal
or objective. Additionally, it aid company's superior to control over conflicts among team
members regarding growth opportunity , performance appraisal, satisfaction level and many
more that enrich Lebara's proficiency ratio. Apart from this, offshoring also impose several
benefits on establishment as it assist them to deliver best and better quality service at low cost
within fixed time in compare to outsourcing. Therefore, adoption of suitable tactics help Lebara
to achieve sustainable profitability and also can improve the overall performance within
competitive marketplace in a better mode.
To identify the benefits of offshoring and outsourcing on Lebara while operating its business
function at international level.
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According to Jacob Funk Kirkeggard, 2005, The present marketplace is becoming highly
competitive and challenging which become huge threat over companies to attain increased level
of productivity. Thus, outsourcing and offshoring impose huge impact over organisation as it
made easier for them in expanding their market in new geographical region and also in
acquisition of advanced technologies (Offshoring and outsourcing - advantages and
disadvantages, 2019). Additionally, it assist Lebara to gain highly potential and skilled
workforce, identify market trend or demand, lower risks and many more that help firm to gain
competitive advantage and sustainable proficiency. . Along with this, Lebara can access its
movement of service i.e. upgrading the virtual network, innovation in mobile application to
different geographical regions without any trade barriers and with less cost. Moreover, with an
implication of outsourcing within Lebara functional areas, it assist them to generate enormous
employment opportunity which improve the life standard of community or society. Apart form
this, offshoring and outsourcing are regarded as one of the effective tool as it help them to
implement best strategic decision in order to sustain within competitive industry for longer
period of time in an amended manner. One of the key benefit which these techniques provides
to Lebara is that it help them to acquire highly talented and competitive personnel who lead an
organisation to enrich its brand image among competitors in an innovative and creative style.
Henceforth, the appropriate decision lead company to accomplish its business objective in a
better manner.
To determine the challenges of offshoring and outsourcing which Lebara come across during
operating at global level.
In the views of Ashok D. Bardhan, 2003, Although the term globalization influence the
company in positive manner yet it contain several challenges which directly effect over
organisation bran value and profitability. One of the foremost threat which Lebara face while
operating at global level is social and cultural differences as each region or country contains its
own regulation for functioning their entire process (Four Outsourcing Challenges (And How To
Solve Them), 2018). The another issue which an organisation come across is that communication
problem which may arise confusion or ambiguity among employees. Moreover, linguistic barrier
creates misunderstanding and misconception among firm's personnel that effect its working
culture and profitability. Due to this, it reduce Lebara's proficiency and capacity to obtain profit
maximisation with an optimum utilisation of resources in an trenchant and expeditious way. In
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addition to this, while operating service in worldwide through outsourcing, Lebara undergoes
with a challenge of acquiring highly skilled manpower who can put their best contribution by
imposing novel ideas for acquiring best position within competing UK market. Apart from this,
outsourcing or offshoring the services impose several difficulties over companies in terms of
political factor because policies or regulation are varies from each geographical region. Due to
which, it impact negatively over organisation decision making capability as well as on attaining
positive perception from targeted marketplace.
Research Methodology
This section is viewed as one of important part of research as it define the way of
gathering data or information in order to complete the task in an appropriate manner. There are
two ways of collecting data which are as follows:
Primary: In this, data or information is collected for first time from respondents by
making use of several techniques like questionnaire, observation, surveys and many more.
Hence, in this report, data are gathered with the help of questionnaire which render them to gain
accurate and valid information in order to improve the quality of work (Di Mauro and et.al.,
2018).
Secondary: This process is relate with those where information about specific topic is
already finished by authors or publishers and this is the reason it is called as second hand
information. However, this report also utilises several articles, journals, magazines for
completing the task in a stipulated time-frame.
Qualitative and Quantitative
Research methods are split broadly into two types i.e. qualitative and quantitative. The
data which is presented in the form of numerical and they are evaluated by using mathematical
and statistical methods. On the other hand, the research which presents the ideas in exploratory
form which help an investigator to delve deep understanding in order to make the project valid
and authentic within marketplace (Koku, 2015).
Sample Size
It is a statistical method of assembling data form larger size of population as it is
classified into probability and non- probability technique. Hence, for this report, investigator
make use of random sampling method and its sample size is 20 respondents.
Gantt Chart
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Work Break Down Structure:
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REFERENCES
Books and Journals
Bailey, D. and De Propris, L., 2014. Manufacturing reshoring and its limits: the UK automotive
case. Cambridge Journal of Regions, Economy and Society. 7(3). pp.379-395.
Di Mauro, C and et.al., 2018. Offshoring and backshoring: A multiple case study analysis.
Journal of Purchasing and Supply Management. 24(2). pp.108-134.
Koku, P. S., 2015. A view from the street: an exploratory study of consumer attitudes toward
offshoring of professional services in the United States. Journal of Services Marketing.
29(2). pp.150-159.
Liu, S. and Wang, L., 2014. Understanding the impact of risks on performance in internal and
outsourced information technology projects: The role of strategic importance.
International Journal of Project Management. 32(8). pp.1494-1510.
Raassens, N., Wuyts, S. and Geyskens, I., 2014. The performance implications of outsourcing
customer support to service providers in emerging versus established economies.
International Journal of Research in Marketing. 31(3). pp.280-292.
Valle, S., García, F. and Avella, L., 2015. Offshoring intermediate manufacturing: Boost or
hindrance to firm innovation?. Journal of International Management. 21(2). pp.117-134.
Online
Difference Between Outsourcing and Offshoring, 2017.[Online] Available Through;
<https://keydifferences.com/difference-between-outsourcing-and-offshoring.html>
Four Outsourcing Challenges (And How To Solve Them), 2018.[Online] Available Through;
<https://www.forbes.com/sites/theyec/2018/01/31/four-outsourcing-challenges-and-how-
to-solve-them/#2e616f345451>
Offshoring and outsourcing - advantages and disadvantages, 2019.[Online] Available Through;
<https://www.mybusiness.com.au/sales/3366-offshoring-and-outsourcing-advantages-
and-disadvantages>
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Research Proposal Form
Student Name: ______________________ Student ID:
____________
Centre Name: _____________________
Tutor: ________________ Date:
___________________
Unit: ____________________
Proposed Title: ______________________________________________
Section One: Title, objective, responsibilities
Title or working title of the research project (in
the form of a question, objective or hypothesis)
The benefits and the risk of offshoring and
outsourcing”.- Case Study on Lebara
Research objectives (e.g what is the question you
want to answer? What do you want to learn how
to do? What do you want to find out?):
 To understand the concept of offshoring and
outsourcing in today's competitive
marketplace.
 To identify the benefits of offshoring and
outsourcing on Lebara while operating its
business function at international level.
 To determine the challenges of offshoring
and outsourcing which Lebara come across
during operating at global level.
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