Benefits and Risks of Offshoring and Outsourcing: A Morrisons Study

This report provides a comprehensive analysis of offshoring and outsourcing strategies, focusing on their application within Morrisons, a leading supermarket chain. The introduction offers an overview of globalization, emphasizing the need for businesses to leverage resources effectively, and introduces the concepts of outsourcing and offshoring. The background section details Morrisons' operations, its market position, and the rationale behind considering outsourcing and offshoring. The research aims to evaluate the benefits and risks associated with these strategies, with specific objectives including understanding the concepts, identifying advantages and disadvantages, and determining the impact on business expansion. The literature review explores the definitions of offshoring and outsourcing, their different types (onshore, offshore, nearshore), and the associated benefits and risks, such as cost savings, access to specialized skills, and potential challenges like cultural differences and confidentiality concerns. The report further examines the relationship between outsourcing and offshoring with Morrisons’ business expansion, highlighting how these strategies facilitate market analysis and resource allocation. The methodology section outlines the research approach, while the data analysis and interpretation section provides findings related to the research questions. The conclusion summarizes the key insights and offers recommendations for Morrisons regarding its offshoring and outsourcing practices.

Research Project

Table of Contents
TITLE:.............................................................................................................................................1
INTRODUCTION...........................................................................................................................1
Overview of Research.................................................................................................................1
Background of Research.............................................................................................................1
Significance of Research.............................................................................................................1
Research Aim..............................................................................................................................2
Research objectives.....................................................................................................................2
Research questions......................................................................................................................2
LITERATURE REVIEW................................................................................................................2
The concept of offshore and outsourcing of resources...............................................................2
The benefits and risks associated in outsourcing and offshoring................................................3
The relationship between outsourcing and offshoring with expansion of business by
Morrisons....................................................................................................................................5
METHODOLOGY..........................................................................................................................6
TIME SCALE..................................................................................................................................8
DATA ANALYSIS AND INTERPRETATIONS...........................................................................9
RESEARCH OUTCOMES............................................................................................................14
REFLECTION & RECOMMENDATION....................................................................................15
CONCLUSION..............................................................................................................................16
REFERENCES..............................................................................................................................17
APPENDIX....................................................................................................................................19

TITLE:
“To investigate the benefits and risks of offshoring and outsourcing upon business
functions on an organisation.” A study on Morrisons.
INTRODUCTION
Overview of Research
Globalisation refers to the process in which business runs at international level and
provide more growth prospects. This is the process in which there is exchange of ideas, resources
which helps in integration and interaction among people, political parties (Alguezaui and Filieri,
2014). Hence, it is clear that globalisation requires more resources such as funds, human
resources, technological aspects, etc. In this report, there is discussion about benefits and risk
associated with offshoring and outsourcing of resources. Out-sourcing refers to the process of
making allocation of resources from outside the organisation. Off- sourcing refers to performing
business operations such as manufacturing, accounting, etc. at some other country to save cost.
There are some changes which are required to be taken to work at international level such as
more marketing, change in technological aspects, etc. In case of expanding business, it is not
compulsory that organisation has all the resources in best and better manner. In this research,
there is discussion about Morrisons which is a fourth largest Super Market chain having
headquarter in England UK.
Background of Research
Morrisons is the company which deals in super market sector. This organisation is fourth
largest in retail sector. This is because they operates in different parts of country such as Russia,
Ireland, etc. There are around 498 stores in different parts which assist in running business at
globalise level. There is requirement of some resources which is relevant for performing business
operations in the form of outsourcing and off sourcing. Off sourcing refers to performing
operations in more than one country to achieve cost benefits advantage and economies of scale.
While out- sourcing refers to the process in which third party performs operations on the basis of
company. This helps to provide quality services to consumer and achieve good customer base. In
environment, changes are taking place with rapid speed such as change in demand of consumers,
technological up-gradations, etc. In this case managers of Morrisons prefer to takes collect
resources from outside the organisation. As per change in plans and policies, there are
1

possibilities that managers of Morrisons can take actions to hire resources from external
environment in order to expand business and achieving cost advantage (Cavusgil and et. al.,
2014).
Significance of Research
This research is conducted in order to analyse benefits and risks associated with
outsourcing and offshoring of resources. Hence with this report, it is easy for reader to
understand the concept of offshoring and outsourcing. With the help of this research researcher is
able to understand about research tools and techniques. Researcher is able to enhance data
analysis and collection skills which helps to pursue research is effective and efficient manner.
With studying this topic, pros and cons of outsourcing and off-sourcing can be evaluated which
assist researcher if they want to avail this service from outside organisation. Morrisons deals in
retail sector where there is requirement of different sources for proper working of organisation
maintaining cost and profit. This topic is vast and relevant in market, so reader enhance
knowledge about it.
Research Aim
“To evaluate the benefits and risks of offshoring and outsourcing of business functions of an
organisation.” A study on Morrisons.
Research objectives
 To understand the concept of offshore and outsourcing of functions.
 To understand the benefits and risks associated in outsourcing and offshoring.
 To determine the relationship between outsourcing and offshoring of functions with
expansion of business.
 To recommend improvements in offshoring and outsourcing of functions in Morrisons.
Research questions
 Do you understand the concept of offshore and outsourcing of functions?
 What are the benefits and risks associated in outsourcing and offshoring?
 What type of relation occur between outsourcing and offshoring of functions with
expansion of business by Morrisons?
 What are the recommendations for improvements in offshoring and outsourcing of
functions by managers of Morrisons?
2

3

LITERATURE REVIEW
The concept of offshore and outsourcing of resources
In business operations, there are many changes which are taking place in external
environment, so it is important for managers of Morrisons to take actions accordingly (Dhar,
2012). Morrisons is the organisation which operates in different parts of country, so it is not
possible to perform all activities with available resources hence in this case there is requirement
of assistance from external market. In general people think there is similarity in both the
terminology.
According to Jonathan Webb (2019); offshoring is the technique to reduce cost for the
organisation by performing business operations such as manufacturing, accounting, etc. in one
another countries. Hence in this case, managers of Morrisons plan to operates business
operations in different geographical region. For instance: in developed countries there is
expensive labour, resources, etc. In order to deal with this situation, managers can operates its
business in developing countries to reduce cost and achieve good profits. While outsourcing
refers to the technique in which managers of organisation gives authority to third party for
running business. This is the situation which arise in case of peak load of work, lack of
resources. This situation arise mainly in case of human resources. For instance: at the time of
festive season, there is overcrowding of consumers at store. Hence in this case managers of
Morrisons has to hire employees on part time basis. This is known as outsourcing. This is done
with proper specification because there is requirement of perfection of services
According to Jim Iyoob (2019), there are different types of outsourcing. Some of them
are discussed as under-
Onshore outsourcing- As per this, Morrisons locate resources to other organisation
which is part of same home country. With the help of this outsourcing, there is ease in
performing operations because both the companies have knowledge about local trends.
Offshore Outsourcing- According to this outsourcing, external party which is located in
some foreign country. Hence with the help of offshore outsourcing, expansion of business is
possible which helps ion attaining good brand image in industry.
Near Shore outsourcing- As per this outsourcing, business operations are performed by
this party which is situated at near place to country, region, etc. having similar culture, religion
4

and trends. This outsourcing is beneficial because there is similarity in trend, so it is easy to
collect information and then provide best quality of products to consumers.
The benefits and risks associated in outsourcing and offshoring
In business environment, changes are taking place with rapid speed so it is essential to
analyse those changes and then implement to working this (Gerbl and et. al., 2015). For instance:
managers of Morrisons are thinking to expand business in South Africa, so in this case, they have
two options either to offshore or outsource resources. In offshoring, business can expanded in
Africa because cost of operating business is low. Labour is cheap, resources are easily available,
etc. are the benefit available for managers of Morrisons. While as per other option, outsourcing is
the method which is used by managers of Morrisons in which they can give authority to third
person for running business in South Africa. Hence, there are some benefits and risk which is
associated with these options.
According to Renato (2019), outsourcing is one of the most common technique used by
different organisation in order to make long term resistance in industry. Benefits and risks of
outsourcing are as under-
Benefits Risks
 There is use of special skills which
assist in providing good quality in the
brand name of Morrisons.
 With the out sourcing, there is no core
competence and this helps in facing
less competition in industry.
 Organisational effectiveness can be
achieved with the help of third party
(Gurung and Prater, 2017). This is cost
savy approach which helps to achieve
good image in industry.
 Confidential information which is part
of management of Morrisons gets
revealed. This affects business
operations in negative manner.
 In outsourcing, personnel are hired
from external market. Hence this affects
morale of existing workers and this lose
their loyalty in organisation.
 There is no clear level of cooperation
from external parties. Hence this affects
relation with external party and this
affects growth and expansion of
Morrisons.
5

Apart from above discusses risk and benefits in implementing offshoring. Cost is one of
the important component which affects revenues of organisation. Some benefits and risks which
are associated with offshoring are as under-
Benefits Risks
 With the help of offshoring, economies
of scale can be achieved. There is
saving of cost for Morrisons and has
positive impact on sales and revenues.
 In offshoring, there is contract between
managers of Morrisons with third party,
which helps in reducing cost and
maintaining working efficiency of
overall organisation.
 There is favourable political policies
which helps to perform business
operations in desirable manner. So
business can expand at globalise level.
 There is difference in culture, trends,
religion of people, so there are
possibilities that there is difference in
preference of consumer and offshore
client.
 In case of offshore transaction,
sometimes third person is ready to
perform business operations under
brand of Morrisons. They have release
business plans and strategies to
competitive brand (Haakonsson, Jensen
and Mudambi, 2012).
 While working in other country results
in costly approach, there are many cost
which are related to operating with third
party under contract of offshoring.
The relationship between outsourcing and offshoring with expansion of business by Morrisons
Morrisons has operations in many countries. They have different products and services
which they offers to consumers according to market trends. According to Jensen, 2012; with the
help of outsourcing and offshoring market analysis can be done which helps to provide product
and services according to their demand. It is not possible to make available resources ready for
the time of emergency, hence in this case both the techniques are preferred. For instance: in
expansion business, managers of Morrisons can contract with third person. This is the approach
which helps to expand business at international level with minimum cost. This decision is taken
by considering all the factors such as cost of labour, availability of raw material, etc. Hence this
6

is the cheap way to expand business with cost advantage. But there is negative impact of
offshoring because there are possibilities of conflict with their person. This affects brand image
of Morrisons in negative manner.
Outsourcing is the process in which hiring of employees or collecting resources with the
help of external market. In case of festive season, there is more demand for product and services
by consumers. Hence in this case, there is requirement of numbers of workers which helps to
provide timely services to consumers (Jimmy Gandhi, Gorod and Sauser, 2012). With the help of
this technique, consumers faith in brand is maintained because they are getting quality products.
Hence in case of globalisation outsourcing is beneficial. But it has some negative aspects as well.
In case of need, there are possibilities that managers of Morrisons may use costly option which
affects sales and revenues. External party does not have knowledge about working ethics and
performance criteria of Morrisons. hence this may creates conflict among existing and external
workforce.
There is important role of managers of Morrisons to take actions according to external
market, so they can plan actions according to change in external market. There is requirement of
employees participation, so it is easy to implement strategies which helps to get positive impact
on organisational growth and development. According to Stentoft, J., Mikkelsen, O. S. and
Jensen, J. K., (2016), With the help of out sourcing, there is reduction in unemployment rate and
political assistance can also achieved to Morrisons. Hence it is identified that there is direct
relationship between globalisation of business with outsourcing and offshoring resources.
Hence it is clear that there is positive and negative relationship between offshoring and
outsourcing with globalisation of business. In order to get positive impact it is essential that
managers of Morrisons have to analyse market, properly plan to get positive impact on
operations of company (Lahiri, Kedia and Mukherjee, 2012).
Recommendations to improve offshoring and outsourcing of resources in Morrisons
There are some recommendations which has to be taken in mind by managers of
Morrison in order to get positive impact on performance of organisation. For instance: while
employees are raised with the help of outsourcing, then managers must hire specialised personnel
who have knowledge about changes which are taking place in external market. While offshoring
resources cost must be considered because there are many hidden cost such as legal contract fees,
commissions, etc. which makes this approach costly. Confidential information must not be
7

revealed in front of outsiders so they can not mis-use it. There is requirement of proper induction
program to out source employees so there is proper coordination among external and existing
workforce.
8

METHODOLOGY
Research can be conducted with the help of proper analysis because this is the study
which provides complete and in- depth information about topic. There are many activities such
as introduction, setting aims and objectives, research methodology, etc. which helps to complete
research within specified time with achieving aims and objectives. Researcher has to perform
research in ethical and effective manner which helps to give relevant and authentic information
to readers. Hence in order to get positive out come, there is use of different techniques such as
research approach, philosophy, design, etc. These techniques are discussed as under in detail-
Research philosophy- This is the outer most layer in the research onion. Research
philosophy is of three types i.e. pragmatist, interpretivist and positivist research philosophy. In
this research, pragmatist research approach is used. This is used because this provides complete
and in- depth information about topic by analysing different prospectives. This research
philosophy bridges gap between remaining two methods because it covers aspects of these two
(Larsen, Manning and Pedersen, 2013).
Research approach- After research philosophy, approach is used. In this research
deductive approach is used. This is the technique which provides information about research
topic by analysing different resources. With observation, issues can be identified and appropriate
knowledge can be conveyed to reader. Apart from deductive approach, inductive is the second
method which can be used by searcher. But research use deductive approach because this suits
with pragmatist research philosophy and deep analysis is done about research topic which helps
to complete research in time.
Research design- There is specific format in which research will be done. There are three
types of research design descriptive, exploratory, experimental. In this research, descriptive
research design is used which provides collect and specific format for completion of research.
Research strategy- Research strategy is the technique which is used to analyse data and
then provide complete information in its regard. There are different strategies such as survey,
case study, observation, etc. In order to collect information regarding, strategy questionnaire is
used. This is the suitable method which is used to provides correct and relevant information
about research topic (Linares-Navarro, Pedersen and Pla-Barber, 2014).
Research choice- Research choice can be understood with the help of qualitative and
quantitative research. In this research, qualitative method is used. As per this method, less
9

numerical data is used but it provide reason about having some specific view. Qualitative
research method is effective for performing research in relevant manner by considering all the
aspects. This strategy is suitable with deductive approach and pragmatist philosophy.
Time horizon- Time horizon refers to time required to complete this project. This
research is complete within 10 weeks in which all the activities are considered. In this time all
the activities such as introduction, research aims and objectives, research methodology, etc.
Techniques, procedure and research instruments- There is proper process to collect and
complete research by achieving research aims and objectives. There are mainly two research
techniques i.e. formative and summative (Massini and Miozzo, 2012). There are proper activities
which are performed to complete research such as introduction, aims and objectives, literature
review, data collection, analysis of collected data, etc. With the help of these, it is easy to get
better and proper outcome.
Data source- This is the source which is used to collect information related to relevant
topic. There are two source collect data i.e. primary and secondary. Primary source is the
technique in which data is collected by researcher on the basis of primary data. Information
collected from this method is relevant and fresh. Secondary source is the technique in which
information is collected from online sources, books, journals, etc. This information is already
collected by some other person so this can be old or out of trend. In this report, both the methods
are used in order to get complete and in- depth information about research topic.
Sampling- Sampling is the way to choice few number of respondents as part of
population for collecting information related to research topic. There are two method of sampling
i.e. random and non random sampling. In this research random sampling method is used in which
there is equal chances of being selected from the total population. With this method, there is less
possibilities of partiality and it is easy to collect data free from biasness.
Research ethics- Ethics is one of the important aspect which is considered by researcher
in completing and attaining aims and objectives (Mihalache and Mihalache, 2016). This research
is conducted in ethical and relevant manner because information which is collected with the help
from respondents. There is proper confidentiality of information and it is used for research
purpose only.
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Research limitation- in conducting research, there are some limitations which affects
achieving aims and objectives. In this research, there is lack of time due to which researcher is
not able to complete it within specified time.
Research reliability and validity- This research is reliable and valid because data is
collected and presented in authentic manner. With this research, researcher is able to enhance its
knowledge about globalisation and in near future can conduct research in significant manner.
Research budget- Budget is one of the main aspect which is considered by researcher to
complete project (Nassimbeni, Sartor and Dus, 2012). While conducting this research, there is
requirement of some finance for collecting information and other activities. Hence this requires
cost of around £5800.
In this research, qualitative method because this provides reason of some specific view.
Questionnaire is used as primary source. Questionnaire refers to some set of questions related to
topic. These questions are asked with respondents in order to collect information on the basis of
research topic. There are 10 questions which are asked from 50 employees working in
organisation.
TIME SCALE
Time scale is the technology which is used by researcher in completing research
(Pedersen and et. al., 2013). There are many activities which is related to research such as
introduction, aims and objectives, research methodology, etc. With the help of these activities
aims and objectives can be achieved and researcher is able to provide complete and relevant
information to readers. Hence time scale is the technique which provides information about
research topic. There are some specific time required for each research activity which provides
complete information to researcher and team mates, so they have complete it within specified
time. Time scale provides information about time allotted to different activities which help top
complete it within specified time (Oshri, Kotlarsky and Willcocks, 2015).
Gantt chart is another approach which is used by researcher to acknowledge activities
through pictorial description. These are the techniques which provides information about
completion of whole project. In completing this project there is requirement of around 10 weeks
which helps to achieve aims and objectives of research.
Work break down structure is the strategies which divides whole project in different
department. As research is time consuming and long term process, so with the help of work
11

break down structure it is easy for researcher to distribute task among different people. This
helps to attain aims and objectives with effectiveness and efficiency.
12

DATA ANALYSIS AND INTERPRETATIONS
Data Analysis- This is the technique which is used to collect information related to
research topic. In this research, thematic approach is used. As per this approach, there are themes
above questions which provides brief information about question. This helps to provide relevant
information to readers and they are able to enhance their knowledge.
Questionnaire
Q1. Do you understand the concept of offshore and outsourcing of resources?
Yes
No
Q2. Are you satisfied with the current performance of Morrisons?
Yes
No
Q3. What is the impact on performance of Morrisons with outsourcing and offshoring of
resources?
Positive
Negative
Q4. Does Morrisons can carry out business expansion with the help of offshore and
outsourcing of resources?
Yes
No
Q5. What are the benefits which company can attain with the help of offshoring and
outsourcing?
Cost effectiveness
Improvement in quality of services and products
Customer satisfaction
Achieving competitive advantage
Q6. What are the components which must be considered by Morrisons while outsourcing
and offshoring resources?
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Available internal resources
Objectives of association
Satisfaction of workforce
Q7. Are there some issues Which Morrisons face in outsourcing of resources?
Yes
No
Can't say
Q8. List some issues faced by Morrisons in offshoring and outsourcing of resources?
Change in external market policies
Conflict among internal and external parties of organisation
Possibilities of leakage of information
Q9. What are the corrective measures which helps to overcome issues arise in outsourcing
and off shoring resources?
Proper communication techniques
Engagement of workforce
Regular market analysis
Q10. Recommendations for Morrisons for getting positive impact on expansion of business
at globalise level with offshoring and outsourcing of resources?
DATA INTERPRETATION
Theme1: Concept of offshore and outsourcing of resources
Q1. Do you understand the concept of offshore and
outsourcing of resources?
Frequency
Yes 39
No 11
14

Interpretation: As per above graph, it is clear that out of 50 respondents, 39 have
knowledge about concept offshore and outsourcing, reasons behind using this techniques. 11
respondents are not aware bout this concept. Hence it is interpreted that it is easy for managers of
Morrisons in perform operations with external forces and expand business at globalise level.
Theme2: Current performance of Morrisons
Q2. Are you satisfied with the current performance of
Morrisons?
Frequency
Yes 36
No 14
15
Yes No
0
5
10
15
20
25
30
35
40
39
11
Frequency

Interpretation: According to above mentioned graph, it is clear that most of employees
are satisfied with performance of organisation because out of 50 candidates 36 are satisfied.
While remaining 14 are not satisfied. Hence it is clear that with outsourcing and offshoring
existing employees are satisfied and discussion is required to be conducted with employee to
understand their mindset.
Theme3: Impact on performance of Morrisons with outsourcing and offshoring of
resources
Q3. What is the impact on performance of Morrisons with
outsourcing and offshoring of resources?
Frequency
Positive 28
Negative 22
16
Yes No
0
5
10
15
20
25
30
35
40 36
14
Frequency

Interpretation: As per this graph, it is clear that with the help of outsourcing and
offshoring of resources positive impact are recorded according to 28 respondents in the form of
business expansion, quality services, etc. While according to 22 candidate, there are negative in
the form of lack of confidentiality, costly approach, etc. So it is interpreted that positive impact is
achieved with collecting resources from external sources.
Theme 4: Assistance of offshoring and outsourcing of resources
Q4. Does Morrisons can carry out business expansion with the
help of offshore and outsourcing of resources?
Frequency
Yes 33
No 17
17
Positive Negative
0
5
10
15
20
25
30 28
22
Frequency

Interpretation: As per above graph, it is clear that according to 33 candidates, there is
positive impact on performance of Morrisons with outsourcing and offshoring of resources.
While remaining 17 respondents disfavours it. Hence it is concluded that benefits are more, so
external components must be used by Morrisons.
Theme 5: Benefits of offshoring and outsourcing
Q5. What are the benefits which company can attain with the
help of offshoring and outsourcing?
Frequency
Cost effective and customer satisfaction 12
Improvement in quality of services and products 18
Achieving competitive advantage with business expansion 20
18
Yes No
0
5
10
15
20
25
30
35 33
17
Frequency

Interpretation: As per above picture, according to 12 respondents, cost benefits and
customer satisfaction can be achieved with outsourcing and offshoring. 18 candidates have idea
that it helps in improving quality of products and services and remaining 20 says competitive
advantage can be achieved as business expansion is easy with using external sources. Hence it is
interpreted that benefits can be achieved with collecting resources from external environment,
hence it is easy for managers to expand business at international level.
Theme 6: Components to be considered in outsourcing and offshoring of business
Q6. What are the components which must be considered by
Morrisons while outsourcing and offshoring resources?
Frequency
Available internal resources 22
Objectives of association 18
Satisfaction of workforce 10
19
0
4
8
12
16
20 12
18 20
Frequency

Interpretation: As per above discussion, it is clear that managers of Morrisons has to
consider some components while raising resources from external environment. According to 22
candidates, managers has to analyse internal resources associated with Morrisons. 18 says that
objectives has to be considered and remaining 10 says that satisfaction of existing workforce is
essential. Hence it is interpreted atht with considering these components positive impact can be
analysed in growth and expansion of business at international level.
Theme 7: Outsourcing of resources
Q7. Are there some issues which Morrisons face in outsourcing
of resources?
Frequency
Yes 28
No 12
Can't say 10
20
Available internal resources
Objectives of association
Satisfaction of workforce
0
5
10
15
20
25 22
18
10 Frequency

Interpretation: As per above graph, it is evaluated that according to 28 respondents,
there are some issues which arise while collecting resources from external environment. 12 says
that no issues will arise and remaining 10 candidates have no idea about this. Hence it is
interpreted that majority of population says that there are some issues, so these must be
considered by managers of Morrisons.
Theme 8: Issues which arise in outsourcing resources
Q8. List some issues faced by Morrisons in offshoring and
outsourcing of resources?
Frequency
Change in external market policies 33
Conflict among internal and external parties of organisation 12
Possibilities of leakage of information 5
21
Yes No Can't say
0
5
10
15
20
25
30 28
12
10
Frequency

Interpretation: According to this graph, there is discussion about some issues which
cause negative effect on use of resources from external market. As per 33 respondents, change in
external market policies, 12 says there are possibilities of conflict among existing and temporary
employees. While remaining 5 respondents says that possibilities of leakage of information
which affects business operations in negative manner. As per this discussion it is clear that
changes in external environment is the biggest issue which arise in offshoring and outsourcing of
resources by managers of Morrisons.
Theme 9: Corrective measures which helps to overcome issues
Q9. What are the corrective measures which helps to
overcome issues arise in outsourcing and off shoring
resources?
Frequency
Proper communication techniques 20
Engagement of workforce 17
Regular market analysis 13
22
Change in external market policies
Conflict among internal and external parties of organisation
Possibilities of leakage of information
0
5
10
15
20
25
30
35 33
12
5
Frequency

Interpretation: As per above graph, it is identified that there are some corrective actions
which has to be taken by managers of Morrisons in order to get positive outcome. According to
20 respondents, there is requirement of proper communication techniques, so internal as well as
external parties can aware about roles and responsibilities. While 17 respondents have view that
engagement of workers and remaining 13 favours for regular market analysis. Hence it is
interpreted that with these techniques actions are taken to get positive impact with outsourcing
and offshoring of resources.
23
Proper communication techniques
Engagement of workforce
Regular market analysis
0
2
4
6
8
10
12
14
16
18
20
20
17
13
Frequency

RESEARCH OUTCOMES
In this research, data is collected with the help of primary as well as secondary data.
Questionnaire is used as primary data while online sources, books, journals are used to collect
secondary data. From the above discussed questionnaire, it is clear that out of 50 respondents, 39
have knowledge about outsourcing and offshoring so it is easy for managers of Morrisons to
collect resources from external sources. Majority of employees are satisfied with current
performance of organisation, so it is easy to make changes in working style with communicating
with workforce. With outsourcing and offshoring, according to 28 respondents positive results
can be achieved because there is improvement in quality of products and services offered to
consumers and cost can be reduced. According to 33 respondents, outsourcing and off shoring of
resources helps in operating business at globalise level.
Majority of respondents favours this techniques because it helps in competing with
external organisation and out shine at globalise level. As per 22 respondents, availability of
internal sources has to be analysed by managers of Morrisons while outsourcing and offshoring
resources from external market. Out of 50 employees 28 says that there are some issues which
arise in this technique such as change in external market policies, leakage of information, etc.
There is requirement of measures through which managers of Morrisons to get positive return.
Out of 50 respondents, 20 favours for using proper communication technique.
From the secondary sources of collecting data it is clear that outsourcing is the techniques
in which business operations is transferred to some other person in order to satisfy consumer
demand and provide them best quality product and services. While offshoring is the technique
which assist in performing operations at some geographical region which assist in attaining cost
advantage. There are different types of outsourcing such as offshore, onshore and nearshore
outsourcing. These are the techniques which are used s per objective off business. There are
some benefits and risk such as change in external market components, costly approach, leakage
of confidential information, ease in business expansion, achieving competitive advantage in
industry, etc. Hence it is communicated to stakeholders that there is positive as well as negative
relationship between outsourcing of resourcing and expansion of business at international level.
There is requirement of some policies which has to be followed by managers of Morrisons to get
positive outcome.
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REFLECTION & RECOMMENDATION
While conducting this research, I am able to understand the concept of outsourcing and
offshoring of resources. In this research, I collected data with the help of questionnaire which is
filled by employees of organisation. There is positive energy in my team so we are able to
achieve aims and objectives within specified time. I can also use personal interview in place of
questionnaire. While conducting this research it is identified that it is tough to collect response
from employees through questionnaire which help to collect data from candidates and understand
their personal views about research topic. There is issue of personal conflict among team mates
because of improper communication. This affects project activities in negative manner. But
because of some responsible teammates research aims and objectives are achieved.
From the above discussion, it is clear that there are some issues which arise in
outsourcing and offshoring resources from external market. Hence in order to overcome them,
there are some recommendations which has to be followed by managers of Morrisons.
 As there are many changes which are taking place in business environment such as
change in legal and political policies, customer trends, etc. In order to deal with change in
political and legal policies, managers of Morrisons must hire expertise personnel who
have knowledge about these techniques, so it is easy to cooperate with it.
 Managers of Morrisons must use different aspects for regular market analysis. This helps
to perform operations according to demand of consumers and possibility of wastage in
less. This also assist in providing best quality product and services because with
outsourcing managers of Morrisons hire individuals who are expertise in it.
 Managers must contract with external parties, so outsourcing and offshoring is cost
effective for Morrisons.
 Managers of Morrisons must use proper communication with existing workforce, so they
are aware about reason of outsourcing,. This reduces possibilities of conflict among
external and internal parties of Morrisons.
Manager of Morrisons must provide relevant and appropriate information to external
personnel which is hired under outsourcing or offshoring agreement. This helps to reduce
possibilities of revealing confidential information in front of external parties.
25

CONCLUSION
From the above discussion, it is clear that with the help of outsourcing and offshoring
resources business expansion at international level can be done. There is requirement of some
activities such as regular market analysis performed by managers of association to expand
business at international level. In this report, questionnaire is used as primary source of data and
response is collected from 50 workers. Hence according to majority of respondents, business
expansion is possible with outsourcing and offshoring resources by maintaining cost of
operations and quality of products and services. In this research aims and objectives are achieved
within specified time.
26

REFERENCES
Books and Journals
Alguezaui, S. and Filieri, R., 2014. A knowledge-based view of the extending enterprise for
enhancing a collaborative innovation advantage. International Journal of Agile Systems
and Management. 7(2). pp.116-131.
Cavusgil, S. T., and et. al., 2014. International business. Pearson Australia.
Dhar, S., 2012. From outsourcing to Cloud computing: evolution of IT services. Management
Research Review. 35(8). pp.664-675.
Gerbl, M., and et. al., 2015. A multi-theory approach to understanding the business process
outsourcing decision. Journal of World Business. 50(3). pp.505-518.
Gurung, A. and Prater, E., 2017. A research framework for the impact of cultural differences on
IT outsourcing. In Global Sourcing of Services: Strategies, Issues and Challenges (pp.
49-82).
Haakonsson, S. J., Jensen, P. D. Ø. and Mudambi, S. M., 2012. A co-evolutionary perspective on
the drivers of international sourcing of pharmaceutical R&D to India. Journal of
Economic Geography. 13(4). pp.677-700.
Jensen, P. D. Ø., 2012. A passage to India: A dual case study of activities, processes and
resources in offshore outsourcing of advanced services. Journal of World Business.
47(2). pp.311-326.
Jimmy Gandhi, S., Gorod, A. and Sauser, B., 2012. Prioritization of outsourcing risks from a
systemic perspective. Strategic Outsourcing: An International Journal. 5(1). pp.39-71.
Lahiri, S., Kedia, B. L. and Mukherjee, D., 2012. The impact of management capability on the
resource–performance linkage: Examining Indian outsourcing providers. Journal of
World Business. 47(1). pp.145-155.
Larsen, M. M., Manning, S. and Pedersen, T., 2013. Uncovering the hidden costs of offshoring:
The interplay of complexity, organizational design, and experience. Strategic
Management Journal. 34(5). pp.533-552.
Linares-Navarro, E., Pedersen, T. and Pla-Barber, J., 2014. Fine slicing of the value chain and
offshoring of essential activities: empirical evidence from European multinationals.
Journal of Business Economics and Management. 15(1). pp.111-134.
Massini, S. and Miozzo, M., 2012. Outsourcing and offshoring of business services: challenges
to theory, management and geography of innovation. Regional Studies. 46(9). pp.1219-
1242.
Mihalache, M. and Mihalache, O. R., 2016. A decisional framework of offshoring: integrating
insights from 25 years of research to provide direction for future. Decision Sciences.
47(6). pp.1103-1149.
Nassimbeni, G., Sartor, M. and Dus, D., 2012. Security risks in service offshoring and
outsourcing. Industrial Management & Data Systems. 112(3). pp.405-440.
Oshri, I., Kotlarsky, J. and Willcocks, L. P., 2015. The Handbook of Global Outsourcing and
Offshoring 3rd Edition. Springer.
Pedersen, T., and et. al., 2013. The offshoring challenge. London: Springer.
27

Online
W. Jonathan. 2019. What Is Offshoring? What Is Outsourcing? Are They Different?. [Online].
Available through: <https://www.forbes.com/sites/jwebb/2017/07/28/what-is-
offshoring-what-is-outsourcing-are-they-different/#2f00a0492a2e>.
I. Jim. 2019. Onshore, Offshore, or Near Shore What is the Difference?. [Online].
Available through: <https://www.etechgs.com/blog/onshore-offshore-near-shore-
difference/>.
Stentoft, Mikkelsen and Jensen, 2016. Offshoring and backshoring manufacturing from a supply
chain innovation perspective. [Online]. Available through:
<https://www.tandfonline.com/doi/abs/10.1080/16258312.2016.1239465>.
Renato. 2019. Outsourcing: Why Outsource? Potential Benefits and Risks. [Online]. Available
through: <https://www.outsourcefitch.com/benefits-risks-outsourcing>.
28

APPENDIX
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)
Title: “To investigate the benefits and risks of offshoring and outsourcing upon
business functions on an organisation.” A study on Morrisons.
Research objectives
Research questions
 Do you understand the concept of offshore and outsourcing of functions?
 What are the benefits and risks associated in outsourcing and offshoring?
 What type of relation occur between outsourcing and offshoring with expansion of business by
Morrisons?
 What are the recommendations for improvements in offshoring and outsourcing of resources by
managers of Morrisons?
Research objectives
 To understand the concept of offshore and outsourcing of functions.
 To understand the benefits and risks associated in outsourcing and offshoring.
 To determine the relationship between outsourcing and offshoring with expansion of business
by Morrisons.
 To recommend improvements in offshoring and outsourcing of functions in Morrisons.
29

Section Two: Reasons for choosing this research project
This research is conducted in order to understand concept of offshoring and out-
shoring of functions in order to run in effective and appropriate manner at
international level. With conducting this research researcher is able to improve
data collection and analysis skills.
Section Three: Literature sources searched
Concept of offshore and outsourcing of functions
Offshoring of operations refers to the process through which business can relocate in one to
another country because of cost effective approach. This helps in performing manufacturing,
accounting and other supporting activities in effective and relevant manner. While outsourcing refers to
process in which organisation hires other company to perform specific task. This is the way through
which organisation can performed by other person to avail efficiency in operations.
Benefits and risks associated in outsourcing and offshoring
There are different benefits and risk associated with outsourcing and offshoring of activities.
With the help of outsourcing of activities, efficiency in products and services can be achieved. While
risk is that outsider person gets to know about confidential information of association.
With offshoring of functions, it is easy to expand business with maintaining cost. While there is
challenge of proper planning and market research which is time and cost consuming approach.
Relationship between outsourcing and offshoring with expansion of business by Morrisons
There is positive relations among outsourcing and offshoring of operations with expansion of
business. When business activities are performed at country where cost is cheap and business
expansion is possible. So there is positive impact on changes in operations. This is relevant for making
business successful which is important to achieving good brand image. While outsourcing helps in
maintaining quality of product and services. Managers are able to compete with external factors which
helps in growth and development.
Improvements in offshoring and outsourcing of functions in Morrisons
30

There are some recommendations which helps to get positive impact on changes which are
taking place in business operations. There must be proper planning related to outsourcing and
outsourcing of resource. Employees must be aware about sources through which organisation select
sources and perform activities. It is important to convey workforce about information which has to be
keep confidential.
 https://www.forbes.com/sites/jwebb/2017/07/28/what-is-offshoring-what-is-outsourcing-are-
they-different/#2f00a0492a2e
 https://www.etechgs.com/blog/onshore-offshore-near-shore-difference/
 https://www.outsourcefitch.com/benefits-risks-outsourcing
Section Four: Activities and timescales
Activities to be carried out during the research project
(e.g research, development and analysis of ideas,
writing, data collection, numerical analysis, tutor
meetings, production of final outcome, evaluation,
writing the report):
How long this
will take:
Milestone one: _______collection of data__________
31

Target date (set by tutor): ____13/3/2019_______________
Milestone two: ____________Analysis of data___________
Target date (set by tutor): _____23/3/2019_________________
Gantt Chart
Section Five: Research approach and methodologies
What type of research approach and methodologies are you likely to use
and why? What your areas of research will cover:
Research is the study of topic in order to enhance knowledge with conducting
product tools and techniques. Research onion is the frame work which provides
complete information about different concepts to conduct research in more
effective and efficient manner.
Research philosophy is the concept which talks about change in strategy through
which all the aspects of research topic can be understood. In this research
pragmatist philosophy is used because this suits with all the other concept.
Research method- there are two methods to conduct research. Qualitative and
quantitative research. In this research qualitative concept is analysed because
32

this helps to get knowledge about reason about some specific views.
Research design- There are three types of research design i.e. experimental,
exploratory, descriptive. In this research , descriptive research design is used
because this is the method through which complete concepts, aspects, etc. which
re followed can be understood to analyse outcome and conclusions.
Research approach: After research philosophy, approach is used. In this research deductive
approach is used. This is the technique which provides information about research topic by analysing
different resources. With observation, issues can be identified and appropriate knowledge can be
conveyed to reader. This is the source which is used to collect information related to relevant topic.
Primary and secondary source: There are two source collect data i.e. primary and secondary.
Primary source is the technique in which data is collected by researcher on the basis of primary data.
Information collected from this method is relevant and fresh. Secondary source is the technique in
which information is collected from online sources, books, journals, etc.
Sampling: Sampling is the way to choice number of respondents for collecting information. In this
research, random sampling method is used in which there is equal chances of being selected from the
total population. With this method, there is less possibilities of partiality and it is easy to collect data
free from biasness.
UNDERSTANDING THE RESEARCH ONION: AN ILLUSTRATION. 2019. [Online]. Available
through: <https://nairaproject.com/blog/understanding-the-research-onion-methodology.html>.
Comments and agreement from tutor
Comments (optional):
I confirm that the project is not work which has been or will be submitted
for another qualification and is appropriate.
Agreed: ________________ (name)_______________ Date ______________
Comments and agreement form project proposal checker( IV sampling)
Comments (Optional):
I confirm that the project is appropriate.
33

Agreed /Disagree: (Name of the IV)
Date
34

Research Ethics approval form
All students conducting research activity that involves human participants
or the use of data collected form human participants are required to gain
ethical approval before commencing their research. Please answer all
relevant questions and note that your form may be returned if incomplete.
For further support and guidance please see your respective Unit Tutor:
Before completing this form, we advise that you discuss your proposed
research fully with your unit tutor. Please complete this form in good time
before your research project is due to commence.
Section 1: Basic details:
Project title:
Title: “To analyse the benefits and risks of offshoring and outsourcing in
globalisation of business.” A case study on Morrisons.
Student name:
Student ID number:
Programme:
College Name:
Intended research start date:
Intended research end date:
Section 2 Project summary
Please select all research methods that you plan to use as a part of your project:
 Interviews Yes No
 Questionnaires Yes No
 Observations Yes No
 Use of personal records Yes No
 Data Analysis Yes No
 Action Research Yes No
 Focus Groups Yes No
 Others (Please specify) :
Section 3: Participants
35

Please answer the following questions, giving full details where necessary.
Will your research involve human participants?
Who are the participants? Tick all that apply:
Ages 12-16: Young people aged: 17-18 Adults
How will participants be recruited (identified an approached)?
Participants are recruited with the help of non sampling method.
Describe the processes you will use to inform participants about what you are
doing:
in order to communicate with participants there is use of official mails, meetings,
etc.
How will you obtain consent from participants? Will this be written? How will it be
made clear to participants that they may withdraw consent to participate at any
time?
In order to obtain consent official forms are used and this is in written form.
Studies involving questionnaires: will participants be given the option of omitting
questions that do not wish to answer?
Yes No
If no please explain why below and ensure that you cover any ethical issues
arising from this
Studies involving observation: Confirm whether participants will be asked for
their informed consent to be observed.
Yes No
Will you debrief participants at the end of their participation (i.e give them a brief
36

explanation of the study)?
Yes No
Will participants be given information about the findings of your study?(This could
be a brief summary of your findings in general)
Yes No
Section 4: Data Storage and Security
Confirm that all personal data will be stored and processed in compliance with the
Data Protection Act (1998)
Yes No
Who will have access to the data and personal information?
Researcher analyse and access data personally and in detail to collect data
systematically.
During the research:
Researcher
Where will the data be stored?
Data will be stored in computerised form.
Will mobile devices such as USB storage and laptops be used
Yes No
If Yes, please provide further details:
After the research:
Where will the data be stored?
How long will the data and records be kept for and in what format?
37

Will data be kept for use by other researchers? Yes No
Section 5 : Ethical Issues
Are there any particular features of your proposed work, which may raise ethical
concerns? If so, please outline how you will deal with these:
It is important that you demonstrate your awareness of potential risks that may
arise because of your research. Please consider/address all issues that may apply.
Ethical concerns may include, but are not limited to the following :
 Informed consent.
 Potentially vulnerable participants.
 Sensitive topics
 Risk to participants and /or researchers
 Confidentiality/anonymity
 Disclosures/ limits to confidentiality
 Data storage and security, both during and after the research (including
transfer, sharing, encryption, protection).
 Reporting
 Dissemination and use of your findings.
Section 6: Declaration
I have read, understood and will abide by the institution’s Research and
Ethics Policy: Yes No
I have discussed the ethical issues relating to my research with my Unit
Tutor:
Yes No
I confirm that to the best of my knowledge:
The above information is correct, and this is a full description of the
ethical issues that may arise in the course of my research
Name: Date:
Please submit your completed form to your supervisor and also attach to
the Research Proposal when submitting to Turnitin.
38

Questionnaire
Q1. Do you understand the concept of offshore and outsourcing of resources?
Yes
No
Q2. Are you satisfied with the current performance of Morrisons?
Yes
No
Q3. What is the impact on performance of Morrisons with outsourcing and offshoring of
resources?
Positive
Negative
Q4. Does Morrisons can carry out business expansion with the help of offshore and
outsourcing of resources?
Yes
No
Q5. What are the benefits which company can attain with the help of offshoring and
outsourcing?
Cost effectiveness
Improvement in quality of services and products
Customer satisfaction
Achieving competitive advantage
Q6. What are the components which must be considered by Morrisons while outsourcing
and offshoring resources?
Available internal resources
Objectives of association
Satisfaction of workforce
Q7. Are there some issues Which Morrisons face in outsourcing of resources?
Yes
No
Can't say
39

Q8. List some issues faced by Morrisons in offshoring and outsourcing of resources?
Change in external market policies
Conflict among internal and external parties of organisation
Possibilities of leakage of information
Q9. What are the corrective measures which helps to overcome issues arise in outsourcing
and off shoring resources?
Proper communication techniques
Engagement of workforce
Regular market analysis
Q10. Recommendations for Morrisons for getting positive impact on expansion of business
at globalise level with offshoring and outsourcing
40