Exploring the Pros and Cons of Outsourcing Business Functions

The research paper titled 'Reflective Journal: Advantages and Disadvantages of Outsourcing Business Functions' explores the intricate dynamics of outsourcing in the global business landscape. As markets open up due to globalization, businesses increasingly turn to outsourcing to gain competitive advantages. This reflective journal outlines the process undertaken by a business student to study how outsourcing can improve business performance and reduce costs while also acknowledging its drawbacks. The research begins with setting objectives to explore outsourcing fundamentals and their impact on organizational turnover and consumer satisfaction. A comprehensive literature review was conducted, analyzing theories from scholars like Cicek, Ozer, Krstic, and Kahrovic, which highlighted drivers such as cost savings, core competencies, IT development, and globalization as key factors in effective business outsourcing. Statistical analysis revealed that while outsourcing offers benefits like access to global talent and reduced operational costs, it also poses risks including job losses in the home country and potential data breaches. Real-world examples from companies like Unilever and Alibaba were used to illustrate successful outsourcing strategies. The research design combined qualitative and quantitative methodologies, employing interviews with executives and structured questionnaires for employee feedback, while adhering to ethical standards. Despite facing challenges such as communication barriers with top-level executives and delays in completing the analysis, the study provided valuable insights into outsourcing practices. Ultimately, this research aims to equip future business professionals with a nuanced understanding of outsourcing's role in enhancing organizational efficiency.

Running head: REFLECTIVE JOURNAL
Reflective Journal: Advantages and Disadvantages of outsourcing Business Functions
Student Name
University name
Author Note

REFLECTIVE JOURNAL
Introduction
The globalization has resulted in a development of open market and new business
policies. In this blooming market of business outsourcing I, as a business student felt that
adequate knowledge is necessary for my future. Therefore I wanted to study the advantages and
disadvantages of business outsourcing as my research topic. The organizations have to choose
appropriate business partners in order to effectively run the business. Through this research paper
I aimed to design a research methodology plan in order to explore the advantages and
disadvantages of outsourcing and how it builds up the business efficiency.
Learning Experience
Before initiating the research I set a few research objectives for the project. My primary
objective was to explore how outsourcing fundamentals are used in increasing the business
performance and reducing cost. I also wanted to extend the research on the role outsourcing
plays in business operations. The positive and negative impacts are also analyzed through this
project. I set research objectives such a way that develops certain project scopes like defining
impact of outsourcing on organizational turn over and consumer satisfaction.
Exploring the Literature
In order meet the research objectives I had to conduct a literature review on the available
literature on similar topics. I wanted to explore how various theorists and researchers have
incorporated the business outsourcing in business functions. As I explored multiple secondary
resources like journals and literatures, I had the opportunity to compare them to gain a deeper

REFLECTIVE JOURNAL
view. Initially I investigated the concept of business outsourcing and realized that it is a big
industry, upon which a large number of employees depend and it gives the company a
competitive edge as well. I referred theories of such scholars like Cicek, Ozer, Krstic and
Kahrovic in order to define the outsourcing in business operations. My initial research
highlighted that factors like investment reduction, cost savings, core competence, IT
development and globalization act as the main driver for an effective business outsourcing. The
companies are utilizing the global open market in the most effective way with the help of
outsourcing. I found that in this paper the author had conducted research on certain number of
operating companies and the result demonstrated that the productivity has grown enormously
because of the implementation of outsourcing operation strategies. As I mentioned earlier many
researchers have stressed on the factor that good outsourcing partners are required for
outsourcing to operate profitably.
Analyzing the research findings
The statistical analysis of the research found that most of the jobs are getting outsourced
in developing countries because they provide cheaper options. Outsourcing helps the companies
to find best talents from all over the world. Few disadvantages of outsourcing have been
discussed as well. Employees from the organizations that are outsourcing suffer from
employment loss. The confidentiality of data becomes more prone to be leaked and misused. I
also focused on literature that has taken examples from organizational practice of business
outsourcing from the real world. Like for Unilever, by applying ERP system for outsourcing in
multiple countries the company saved huge amount. For a company like Alibaba the outsourcing
became strategy to expand the business successfully. Following certain researchers who I
explored during my reviewing I can conclude that outsourcing is time efficient and budget

REFLECTIVE JOURNAL
friendly so it is most likely to be adapted by most number of companies in near future. I followed
multiple researchers minutely and realized that outsourcing of business has both advantages and
disadvantages. The advantages are mainly flexibility of business, speed increase and more
profitability where the disadvantages are related to data protection and management control.
Setting up Questions and Exploring Answers
After reviewing the literature I set the primary question to identify the advantages and
disadvantages of business outsourcing and then I set some secondary research questions that
primarily ask questions related to the consequences, importance, impacts and limitations of
outsourcing in business operations. The literature analysis helped me to establish the hypothesis
is associated with the business outsourcing. The hypothesis I established mainly dealt with
employee skills for effective outsourcing, the strategic evaluation and the opinions of the
employees regarding the outsourcing program.
Future prospect
The findings of the research will help me to gain adequate knowledge and grow as a
skilled business professional. In the competitive global market the knowledge on outsourcing
will add to my experience and my future hirers are most likely to consider it with importance.
The information from the research can be utilized by the organizations in the outsourcing
operations. Other researchers can get information from this research that might help them to
enhance the research and open up new possibilities.

REFLECTIVE JOURNAL
Observations and Connections
I had to prepare a research design and methodology that could guide me towards the right
direction of the research. I chose the mix methodology where I used both qualitative and
quantitative research methodologies to gain and analyze the relevant data related to my research.
I focused more on the qualitative research on the effect of outsourcing on the organizational
practice. I have conducted an in depth interview with the selected higher level executives of the
organizations on the organizational working structure. I had set a well structured questionnaire
for recognizing the employee behavior. I had followed the ethical policies to conduct the
research in the right way. For the quantitative research I followed a sampling method that
involves small population. I performed statistical testing on the data I collected and applied on
other organizations those are involved in outsourcing.
Conclusion
I faced few research limitations while conducting the research; like I could not engage in
effective communication with the top executives of the company. I also struggled to document
appropriately in the standard structure. Finally the biggest I challenge I faced was that I failed to
complete the research analysis within the instructed period. I started the research on 29th
September and it was supposed to be completed by 11th of January but I managed to complete the
complete by 20th January. However this research was a long and difficult yet enriching journey
for me. The data and information I gathered throughout the research helped me to gain
knowledge that will help me in my career as a business professional.