Analysis of Outsourcing and Backshoring in Business Operations

The study explores the evolving landscape of outsourcing and backshoring, pivotal components influencing contemporary business strategies. It analyzes how these practices affect global supply chain management and the decision-making processes in international business settings. Drawing from a range of scholarly sources, this paper examines both the benefits and challenges associated with outsourcing and backshoring, offering strategic insights for businesses aiming to optimize operational efficiencies and market responsiveness. The research underscores the necessity of balancing cost considerations with quality control and local market needs, while also considering long-term sustainability in global operations. By providing a comprehensive overview of theoretical perspectives and practical implications, this paper aims to equip business leaders and managers with the knowledge required to make informed decisions about outsourcing and backshoring strategies.

Running Head: REFLECTIVE REPORT
Business Research Individual Reflective Journal

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I gained my awareness towards the advantages and disadvantages regarding the outsourcing
business function. I also learned that the outsourcing is a business procedure that includes
product and services through venture contract with suppliers. Additionally, it is analysed that
most of the organization has used outsource business to decline the labour and transportation
cost (Arlbjørn, et al., 2014). I also learned that the business outsource can positively
influence the performance of business as well as it also quit negative impact on the business
in long-term. I gained my knowledge about project scope in depth. In additionally, it can be
said that the business outsources can be effective to easily enhance the performance of an
organization in long-run. The outsource business function can be advantageous for saving the
cost of organization. Because, it enabled the organization to decline the labour cost as well as
transportation cost of firm. It will support to enhance the efficiency of business by increasing
the productivity of firm in an appropriate manner. At the same time, I also analysed that there
are some significant factors that show the advantages of outsourcing business named
available for 24 hours, outsourcing business process for increasing efficiency, and focus on
the core business process. In oppose to this, it can be said that there are some factors that
influence outsources business function named Involvement in the hidden cost and Loss of
Managerial Control (Cavusgil, et al., 2014). Other factors are Pricing issues, Security risk
related to exposure of sensitive data, and Political and cultural disadvantage. I gained my
depth understanding about these factors that can negative impact on the firm. In additionally,
I also understood that execution of innovation in the business function can be significant to
obtain favourable outcome from the business in long-run. In addition to this, it can also be
said that I also gained my knowledge regarding the finance and accounting, human resource
management, and legal procedure. In addition to this, it can also be said that the outsourced
business function can enabled the organization to categorize the activity of an organization
that will be supportive to complete the specified task in less time and cost (Dolgui, et al.,

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2013). I also learned that when an organization to make contract with third party then they
relocating some power of management to the party.
As a result, it can create the issue related to the management of power in the business
function in the upcoming period. Moreover, the difference between political and cultural
factors can create also the problem for an organization due to outsourcing the business
function. Further, I also understood that in the current period an organization has suffered
from the leakage of confidential data and in the outsourcing business function it can be a
primary issue for an organization. Therefore, it can be said that such kinds of issues can resist
the organization to invest in the outsourcing. In oppose to this, I also gained my knowledge
regarding the research objectives that were important to perform the research activity in an
appropriate manner. In addition to this, I also gained my knowledge about the particular
reason of businesses outsource functions. I also increased my knowledge about the scope of
the project. It can be analysed that most of the researcher has completed the researcher on the
business outsource function but there is lack of advantages and disadvantages of the business
outsource the function (Hsu, et al., 2013). So, I learned that the research topic was
appropriate. I gained some sectors that are important in the outsourced business function such
as human resource management, finance and accounting department, and legal procedure. I
also learned about the development of hypothesis to accomplish the research issue in a
systematic manner. I also gain my knowledge about the creation of research question that
played an imperative role in the accomplishment of research issues. At the same time, it can
also be said that the research design plays a crucial role in the collection of data
appropriately. The research design supports to select the appropriate technique for solving the
issues of research in a significant manner (Schniederjans, et al., 2015). I also learned about
qualitative research a design that was appropriate for research. At the same time, I understood

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that the qualitative research design can support to develop the theoretical understanding about
the research issue.
At the same time, I also learned that a researcher can use this research design method in case
the research is subjective in nature. I improved my understanding about some significant
factors such as ethnographic studies, case studies, historical data collection, and grounded
theory. Additionally, I understood that the research design can support to make an
appropriate decision to solve the research issue. In addition to this, I gained my awareness
about the research methodology that supports to provide the appropriate techniques to
eliminate the research issues in an appropriate manner. I addition to this, it can also be said
that understanding about the research approaches can be also beneficial in the research. I
increased my consciousness about the inductive approach that is appropriate for this research.
It can be evaluated that the inductive approach is supportive to collect the theoretical
understanding of the research issue. The inductive approach also uses at the time of
subjective research (Willcocks, et al., 2013). I also gained my understanding about the
reliability and validity of research approach due to obtaining the appropriate outcome in the
specified time. I increased my knowledge about the sampling method and sample size that
were required to accomplish the research task successfully. I also learned that the probability
sampling method is supportive to effectively complete the research objectives. The
probability sampling method provides the equal chance to the respondents for reacting in
oppose to the questionnaire (Vetráková, et al., 2013).
I also improved my knowledge about the data collection method such as primary and
secondary data collection method. In the primary data collection method, some significant
sources are used like observation, interview, and content analysis. The primary data
collection method helps to offer the fresh or new data to the researcher while the secondary
data collection method offers information from the existing information (Sekaran, et al.,

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2016). There are some sources that were included in the secondary data collection methods
such as a journal, company website, online and offline sources, books, academic journals, and
magazine. At the same time, it can also be said that understanding about data collection
methods can be supportive to improve my research skills in an appropriate manner (Smith,
2015).
Along with this, I also learned about the variables that affect the research in long-term. I also
gained my knowledge about the research limitation due to effectively perform the task of the
research objectives in an appropriate manner. There are different kinds of factors that can
negatively influence to accomplish research such as lack of time and cost, lack of resources,
and lack of financial resources (Taylor, et al., 2015). In addition to this, it can be said that the
knowledge of research limitation can also be supportive for conducting the research in future.
Moreover, it can also be said that I also gained my knowledge about the time schedule in a
systematic manner.

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References
Arlbjørn, J. S., & Mikkelsen, O. S. (2014). Backshoring manufacturing: Notes on an
important but under-researched theme. Journal of Purchasing and Supply
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Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L.
(2014). International business. USA: Pearson Australia.
Dolgui, A., & Proth, J. M. (2013). Outsourcing: definitions and analysis. International
Journal of Production Research, 51(23-24), 6769-6777.
Hsu, C. C., Liou, J. J., & Chuang, Y. C. (2013). Integrating DANP and modified grey relation
theory for the selection of an outsourcing provider. Expert Systems with
Applications, 40(6), 2297-2304.
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and
insourcing in an international context. UK: Routledge.
Sekaran, U., & Bougie, R. (2016). Research methods for business: A skill building approach.
USA: John Wiley & Sons.
Smith, J. A. (Ed.). (2015). Qualitative psychology: A practical guide to research methods.
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Taylor, S. J., Bogdan, R., & DeVault, M. (2015). Introduction to qualitative research
methods: A guidebook and resource. USA: John Wiley & Sons.
Vetráková, M., Potkány, M., & Hitka, M. (2013). Outsourcing of facility management. E+ M
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Willcocks, L., & Cullen, S. (2013). Intelligent IT outsourcing. UK: Routledge.