Determining Outsourcing Effectiveness: BG Group's Perspective

This report examines the effectiveness of outsourcing services within the context of the global business environment, using BG Group as a case study. It begins with an introduction that outlines the research's background, rationale, aims, objectives, and research questions, setting the stage for an in-depth analysis. The report then delves into a comprehensive literature review, exploring the concept of outsourcing, its effectiveness within BG Group, and the relationship between outsourcing and globalization. The research methodology chapter details the philosophical approach, research design, data sources, sampling techniques, and ethical considerations. The data analysis section presents findings related to outsourcing's impact on BG Group, including cost benefits, increased efficiency, focus on key areas, and access to skilled resources. The discussion also covers the impact of globalization on outsourcing. The report concludes with recommendations, reflections, and a summary of the findings, providing valuable insights into the strategic importance of outsourcing in today's business landscape. The report also includes a Gantt chart to visualize the research timeline and key activities.

How Effective is
Outsourcing Services
in Current Global
Business Setting
Company

Table of Contents
TITELE:...........................................................................................................................................3
CHAPTER1: INTRODUCTION.....................................................................................................3
Overview of research..............................................................................................................3
Background of research..........................................................................................................3
Rational of the research..........................................................................................................3
Research aim .........................................................................................................................4
Research objectives................................................................................................................4
Research questions.................................................................................................................4
CHAPTER2: LITERATURE REVIEW..........................................................................................4
CHAPTER3: RESEARCH METHODOLOGY..............................................................................7
CHAPTER4: DATA ANALYSES..................................................................................................8
CHAPTER5: RECOMMENDATION, REFELECTION AND CONCLUSION ........................23
Recommendation..................................................................................................................23
Reflection.............................................................................................................................23
Conclusion ...........................................................................................................................24
REFERENCE.................................................................................................................................25

TITELE:
“To determine the effectiveness of outsourcing services in current global business setting
company.” A study on BG Group.
CHAPTER1: INTRODUCTION
Overview of research
Outsourcing has became the major trend in the present business world. This is the
practice in which the business organisation works immensely to send the suitable job operations
and functions outside the business organisation. The term outsourcing means that the outside
established company work effectively to provide services to a third party. This research will
explain the background of the research, rationale for conducting the research, aims and
objectives of research (Chen and. et. al., 2014). It will also concentrate on research methodology
and literature review. Organisation which will be considered for this research is BG Group which
has initiated its operations from the year 1997 and deals in oil and gas industry.
Background of research
The research is to be conducted on the topic of determining the effectiveness of
outsourcing services in current global business setting company. A study on BG Group. This
company deals in oil and gas industry and serves products like crude oil, natural gas, etc. The
company serves its products through out the world. This has been made possible due to the
concept of outsourcing and globalisation. The company was involved in selling these products
and services to the wholesale customers of different countries like retail suppliers and electricity
generating companies, etc. So, it becomes important to identify the effectiveness of supplying or
outsourcing the petrol and natural gases to the other global countries. Furthermore, this has been
made possible due to the concept of globalisation (Gentry and. et. al., 2014).
Rational of the research
The main reason and significance of conducting the research was to identify the
effectiveness of outsourcing services in the current global business world. This will help in
understanding and giving the knowledge about the different option through which the countries
can interact with one another and products and services can be imported and exported.

Furthermore, by analysing the effectiveness the research will help in giving the in depth and
insight view of outsourcing and globalisation (Goldschmidt and Schmieder, 2017). Thus, through
this the business can be expanded and it will contribute in growth and development of the overall
economic climate of the organisation.
Research aim
“To determine the effectiveness of outsourcing services in current global business setting
company.” A study on BG Group.
Research objectives
 To study the concept of outsourcing.
 To determine the effectiveness of outsourcing services in BG Group.
 To study the relationship between globalisation and outsourcing.
Research questions
 Do you know about the concept of outsourcing?
 What are the effectiveness of outsourcing services for BG Group?
 Is there any relationship between outsourcing and globalisation?
Gantt chart: The concept of Gantt chart was created by the Henry Gantt which depicted
the graphical representation of different activities of the research. Under this, the start and finish
date of each activity is placed against each activity which will help the researcher in fulfilling the
objectives of each stage within the specified time frame (Gorla and Somers, 2014). This provides
more favourable and visual results and pictorial presentation helps in completing the research on
time.
CHAPTER2: LITERATURE REVIEW
To study the concept of outsourcing
According to Margaret Rouse (2019), Outsourcing is one of the most important
phenomenon in present business world. It is increasingly being used in present business world
and is used a competitive tool. In this concept, a business organisation focuses on hiring other
company or a person who will be accountable for performing a respective task. They will be
accountable for managing the operations and providing different services. Large number of
business organisations, outsource their products and services and other non core activities so that
they can put emphasis on main business operations and generates revenue. There are many

purposes for which the process and concept of outsourcing are adopted by the companies. For
instance, it will help in maintaining the focus, flexibility and maximisation of customer services
in relation to the basis of the business operations (Gunasekaran and. et. al., 2015). This helps the
businesses, in maximising the performance of the organisation such that they will be able to
manage and establish the control over the operations of the firm and useful in improving the
overall image and goodwill of the company in the global market. It is also useful in bringing the
innovative and creative ideas to the businesses and operating performance of the company.
To determine the effectiveness of outsourcing services in BG Group
According to Flatworld Solutions (2019), Outsourcing has been one the most prominent
term in present business world which has contributed the more quality and cost conscious
businesses through out the world. Therefore, outsourcing services used by BG Group has been
strongly contributed in the overall success and growth of the business. Using this service is
highly effective in BG group in terms of profitability and revenue. The outsourcing services has
brought in significant changes in the organisations structure (Gylling and. et. al., 2015). The BG
Group when thought of adopting outsourcing in their operations then they have minimised the
size and structure of the of the company. During the earlier days it was preferable that the
company must have physical structure but with advancement in technology and communication,
it has been focussed towards the virtual structure of the organisation. The following are the some
of the effectiveness of outsourcing services in BG Group discussed below:
Cost benefit: The most crucial benefit of outsourcing has brought a significant cost
saving benefits to the organisation. This helps in getting job done at comparatively lower cost
and also at better quality.
Increased efficiency: When the BG Group outsource their services to the experienced
partner then this helps the company in bringing expertness in delivering complex projects (Kuek
and. et. al., 2015). Thus, this will help in performing the job in a better way with relevant
knowledge and understanding. Therefore, this will help in contributing to the maximisation in
productivity and efficiency.
Emphasis on key areas: Through outsourcing the business of BG Group will remain
free from forcefulness and allow them to build their brand, invest in innovation through research
and development department, etc.

Saves infrastructure and technology: Through outsourcing, the company is able to
eradicate the necessities for making investment in infrastructure as this helps in taking the
responsibility of the business procedures and develops infrastructure for the same (Lan and. et.
al., 2016).
Access to skilled resources: With this, the BG Group will not required to invest in hiring
and recruiting the candidate. Because the company who indulge themselves in outsourcing,
keeps in mind the access to hire skilled resources. Therefore, the people are already educated and
have higher level of skill and knowledge.
Time zone effectiveness: Apart from the various effectiveness of outsourcing services,
one of the most prominent one is saving or removing the barrier of different time zones.
To study the relationship between globalisation and outsourcing
According to Jill Heaney (2019), the term globalisation has been driven by different
resources and technological advancements. The concept of outsourcing and globalisation is
different from one another but still they are related to each other. The outsourcing of services has
been made possible for the BG Group to different parts of the world only through the
globalisation which has successfully removed the different barriers for imports and exports. The
outsourcing has been adopted by the multinational companies because globalisation help them in
adopting the different changes prevailing in the outside world and expand their business in order
to achieve the desired set of business goals and objectives so the company remains competitive
in nature. Therefore, collaboration with third party has been possible through globalisation which
has contributed in sharing information, specifications of the projects and sensitive information
regarding the scope of the project. Therefore, globalisation and outsourcing helps in defining the
present business world as high tech global village (Larcker, McCall and Ormazabal, 2015). The
growth and develop of communication sector, global networks, public and freely available
information, logistics, internet, etc. has brought in different services which makes the business
enterprise effective and efficient in overall work and operations. Such kind of development has
helped in maximising the efficiency of important traditional industries, and in absence of this, the
business houses will distribute their manpower and resources. This also helps in creating a room
for the providers to help local companies in lifting their operations.

CHAPTER3: RESEARCH METHODOLOGY
The process of research methodology is concerned with assembling and gathering the
relevant information and subject matter which will help in taking the decisions for the business
organisation. This concept makes use of particular topic and process which will help the
researcher in effectively analysing and examining the topic. The ontology is the philosophical
study or something that is applied neutrally to something in real sense. Epistemology is the study
of knowledge and justifiable belief. This focuses on nature, limits and origination of human
behaviour. Axiology is related to the values and focuses on understanding the nature of value and
value judgements. Therefore, the following are the techniques of research methodology
discussed below:
Research philosophy: Research philosophy is the vast topic which contains are of four
types namely, pragmatism, positivism, realism and interpretivism (Li and Wan, 2014). In this
research, positivism philosophy will be used because with this the solutions for the questions can
be identified by making use of theories and frameworks.
Research approach: The research approach is the plan or procedures which are set in
order to effectively conduct the research. There are four types of research approaches namely,
deductive, inductive and abductive. In this research, the deductive approach will be used because
it fits best with the pragmatism philosophy.
Time horizon: The time will determine the total time required to complete the research.
In this, cross sectional time horizon will be used by the researcher because it will put emphasis
on the present and existing situation of the business.
Research methods: The research methods is combination of qualitative and quantitative
research methods wherein qualitative research will be used to collect data. The qualitative
method will help in understanding the human behaviour whereas the results provided by
quantitative methods will contain the statistics and numeric terms (Oshri, Kotlarsky and
Willcocks, 2015).
Data sources: The source of data means the means through which the information is
required to be collected. There are 2 sources of collecting the information namely primary and
secondary. In this research both the methods will be used wherein the primary method will
include collecting the information for the first time through questionnaire and secondary method

means collecting information from secondary sources like internet, journals, etc. which will be
used in literature review.
Research sampling: The term sampling is concerned with providing a sample size on
which the research has to be conducted. Therefore, in this research random sampling.
Research ethics: The research ethics will concentrate on certain rules and regulations
which will help in providing the differentiation between right and wrong (Parella, 2014).
Therefore, the research has to be conducted with proper fairness and result generated must be
true and fair.
Research limitation: The research limitation is concerned with providing the constraints
which makes problem in way of conducting the research. Some of the major limitation includes
time, poor communication skills, lack of adequate funds, etc.
Research reliability and validity: The reliability of the research is completely
concerned with testing the technique through means of questionnaire (Rivard and Aubert, 2015).
Whereas the validity will be determined by the minimising the different issues which may be
faced by the researcher.
Research budget: Every research has certain budget within which it has to be conducted
and for this research the estimated budget is £800.
CHAPTER4: DATA ANALYSES
The term data analyses will help in identifying and analysing the collected information.
This will help the researcher in framing the interpretation of the results obtained from the
collected data (Schniederjans and. et. al., 2015). In this research, the researcher will use
questionnaire where the sampling size will be taken as 40.
QUESTIONNAIRE
NAME:
AGE:
GENDER:
Q1. Do you know about the concept of outsourcing?
A. Yes
B. No
Q2. What are the effectiveness of outsourcing services for the BG Group?

A. Cost benefit
B. Improved efficiency
C. Time advantage
D. All the above
Q3. Is there any relationship between globalisation and outsourcing?
A. Yes
B. No
Q4. What will be the impact of outsourcing services on BG Group?
A. Positive
B. Negative
Q5. What are the major reason for which BG Group will outsource their products and
services?
A. To earn revenue
B. To stay competitive
C. Both
Q6. What are the major barriers which can restrict the outsourcing of services?
A. Political factors
B. Technological problems
C. Both
Q7. What are the basic principle requirements for outsourcing?
A. Connect relationship
B. Quantity and quality
C. Evolve requirement delivery
D. All the above
Q8. Does the concept of outsourcing is always beneficial for the BG Group?
A. Yes
B. No
Q9. In which of the following the outsourcing can be categorise?
A. Back office
B. Front office
C. Both

Q10. Any recommendation for improving the outsourcing services in global world.
Interpretation
The information which has been gathered by conducting the research will be interpreted
that will provide the insight views and opinions of people.
THEME1: Concept of outsourcing
Do you know about the concept of
outsourcing?
Frequency
Yes 28
No 12
Interpretation: From the above graph, it has been summarised that out of 40 people, 28
says that they are aware about the concept of outsourcing because they have full and efficient
knowledge about the exchange and sharing of businesses with the third parties. Also, some of
them are involved in multinational companies and are known with the process of outsourcing the
Yes No
0
5
10
15
20
25
30 28
12

services. Whereas 12 says that they are not aware about outsourcing because they do not have
the effective knowledge and are also unemployed.
THEME2: Effectiveness of outsourcing services for the BG Group
What are the effectiveness of outsourcing
services for the BG Group?
Frequency
Cost benefit 8
Improved efficiency 7
Time advantage 5
All the above 20
Interpretation: From the above graph, it has been summarised that out of 40 people, 8
believes that this will provide cost advantage because through outsourcing the minimisation of
cost in different segments are done effectively and efficiently. 7 believes that improving
Cost benefit
Improved efficiency
Time advantage
All the above
0
2
4
6
8
10
12
14
16
18
20
8 7
5
20

efficiency is the major effectiveness because the use of technological advances helps in
improving the productivity and efficiency which will provide the overall effectiveness. 5 says
time advantage because it removes the problem of different countries time zones and work can
be performed effectively and efficiently. Whereas, majority of the people that is 20 says that all
the points are equally important.
THEME3: Relationship between globalisation and outsourcing
Is there any relationship between
globalisation and outsourcing?
Frequency
Yes 22
No 18
Yes No
0
5
10
15
20
25 22
18