Identifying the Role: Offshore Outsourcing in the UK Analysis

This report investigates the factors contributing to the rise of offshore outsourcing in the UK, focusing on the roles played by organizations and individuals. The introduction highlights the impact of globalization and economic fluctuations on outsourcing trends, with a detailed literature review exploring cost-cutting measures and the availability of skilled labor as key drivers. The research delves into the significance of the study, outlining its importance in identifying the factors influencing offshore outsourcing. The report's structure includes sections on literature review, research methodology, data analysis, and conclusions, providing a comprehensive analysis of the subject. The findings aim to inform policy and decision-making related to employment and intellectual capital in the UK, offering valuable insights for further research and potential solutions to employment challenges. The report examines the interplay between organizational strategies, individual influences, and external factors, providing a holistic view of the offshore outsourcing landscape.

TO IDENTIFY THE ROLE THAT ORGANIZATION AND
INDIVIDUALS PLAY IN ELEVATION OFFSHORE
OUTSOURCING IN THE UK

TABLE OF CONTENTS
TITLE..............................................................................................................................................1
1. INTRODUCTION.......................................................................................................................1
2. SIGNIFICANCE OF RESEARCH..............................................................................................2
3. LITERATURE REVIEW............................................................................................................3
Conceptual framework on literature review................................................................................6
Literature Gap..............................................................................................................................7
4. RESEARCH QUESTION............................................................................................................7
5. AIMS AND OBJECTIVES OF THE PRESENT RESEARCH..................................................8
6. RESEARCH METHODOLOGY ...............................................................................................8
7. PROJECT PLAN.......................................................................................................................10
8. CONCLUSION..........................................................................................................................11
9. REFERENCES..........................................................................................................................13

TITLE
To identify the role that organization and individuals play in elevation Offshore outsourcing in
the UK.
1. INTRODUCTION
Current project report is prepared on factors that are playing prominent role in elevating
Offshore outsourcing in UK. In the report, detailed literature review is done on factors like
organization role and reasons due to which they promote Offshore outsourcing in the country.
Cost cutting and lack of highly skilled workforce are the two main factors that are motivating
firms to hire foreign people in their company for the projects that are carried out in UK. Apart
from this, there is large population of foreign people in the UK. These people to some extent
motivate their relatives to come and do job in UK. Thus, in the entire report detail discussion and
critical analysis is done on these factors.
Background of study
Globalization is the buzzing word on which most of the experts in different verticals
talking about. Globalization bring lots of changes across the globe in terms of cooperation
among the nations in various sectors such as energy, IT and petrochemicals etc. Cooperation in
these areas promote sharing of intellectual capital among the nations. This give boost to Offshore
outsourcing across the developed nations like UK and USA. Current research report is prepared
on the Offshore outsourcing that is happening in the UK at rapid rate. Offshore outsourcing put
heavy impact on any nation economy. Before few year organizations were not taking interest in
outsourcing but fluctuation in economic condition and changes in social condition have forced to
companies to enter into new market. In the year of 2008 UK has faced huge economic loss, most
of the business have been closed because they were unable to run their operations smoothly. But
gradually companies have started relocating their firms in other geographical areas in order to
earn more profit. Now-a-days most of the big organizations are operating the business globally.
Many firms have entered in UK as well that has supported in increasing foreign currency of the
nation.
Present research study mainly focused on role that organization and individuals play in
elevation of Offshore outsourcing in the UK in past couple of years. It can be observed that in
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past years UK economic cooperation increased with number of nations of the world (Harvey,
2012). Due to this reason number of foreign companies especially Indian firms enter in to
agreement with varied UK firms in varied domains like IT. It is well known fact that IT skills of
Indian people is excellent and labor cost is also very low. Hence, UK IT and other sector firms
are inviting Indian and other nation’s people to operate project in the nation. On this basis it can
be said that organization play an important role in Offshore outsourcing of foreign people in the
nation. Similarly, individuals those resides in UK have their relatives in the other nations. These
individuals work on higher posts in the UK and by using their influence they make easy for their
relatives to get employed in the UK. It can be said that organization and individuals play an
important role in Offshore outsourcing elevation in UK.
2. SIGNIFICANCE OF RESEARCH
There is great significance of the present research study. According to Fechter and
Walsh, (2013) Offshore outsourcing is elevating at increased rate in the UK. In past couple of
years sharp plunge is observed in the Offshore outsourcing in the UK. Negative impacts of
Offshore outsourcing is also observed in the UK in terms of employment. It can be observed that
some nations like Australia are making rules to reduced population of Offshore outsourcing
population in the nation. Results obtained from present research study will help people in
identifying varied factors that play prominent role in increasing Offshore outsourcing in UK and
to what extent they are playing role in same. On the basis of output of present research study
further research can be carried out like if firms are contributing to Offshore outsourcing in UK
then answer of question why they are interested in doing so can be identified (Fechter and
Walsh, 2013). On further research solutions can be identified to reduce Offshore outsourcing in
UK so that more employments can be made available to the UK people. Thus, it can be said that
there is huge importance of current research study and it will act as foundation stone for
commencing further research to solve employment issues that nation currently is facing.
Rationale of research
It is another important section of the present research study. It is important to conduct the
present research study because it is necessary to identify the factors that on organization level
play an important role in increasing Offshore outsourcing in the UK. On the basis of the present
research study government and policy makers will come to know about area where they really
need to work in order to increase employment for local people and to increase elevation in
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intellectual capital in the nation. Thus, it can be said that results obtained from the research will
generate a lot of inputs that will be taken in to account by the relevant entities for taking relevant
decisions.
Structure of the report
Below is the structure that will be followed to prepare dissertation. Introduction: In the first stage introduction section will be prepared and under this in
detail research topic will be taken in to account. Detail discussion will be done in this
section about research topic and aims as well as objectives will be developed. Literature review: This will be second section of the report and under this different
authors articles are reviewed in detail. Critical analysis of discussed topic is done in order
to find out opinion of different scholars on same topic. This will help one in developing
broad understanding of the topic. Research methodology: In this section of report approach, philosopher and methods that
will be followed to conduct research will be explained in detail with full justification. Data analysis: In this section data will be analysed by using thematic analysis method.
 Discussion and conclusion: In this section all results are discussed and then conclusion
is formed and on that basis recommendation is given.
3. LITERATURE REVIEW
To identify factors that motivates firms to increase Offshore outsourcing in the UK
According to Counsell, (2011) there are number of factors that motivate business firms to
expatiate employees from outside the nation. Cost is one of them, it is observed that in the
nations like UK there is high employee cost and due to this reason overall cost of business
increased at rapid rate. It must be noted that cost of employees cover large portion of the overall
cost of business. Thus, it is very important to keep same in control. This is done by hiring
employees outside the nation. UK firms pay a very low amount to the onshorings and these
people convert same amount to their domestic currency, which increased its monetary value.
Hence, by following this approach firm successfully reduce its employee cost. This is the one of
the factor that motivate firms to promote Offshore outsourcing. It can be observed that large
firms like CISCO, Fidelity Systems and other IT firms to large extent make use of Offshore
outsourcing employees to complete their large size project at cheaper cost.
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Contrary to this Varma, Pichler and Budhwar, (2011) state that cost is not a big factor due
to which firms are following concept of Offshore outsourcing. Currently, firms are operating
their business in varied nations of the world. There is a term organization culture that reflects
principles, policies and ethics that are followed by different partitions of the world. In order to
grow business consistently it is very important to treat all employees equally. Hence, firms time
to time invite employees from multiple nations to work on projects that are carried on abroad.
This reflects that firm is not giving importance only to its nation employees but is treating entire
workforce equally. This lead to development of group cohesiveness among the people. It can be
said that apart from cost there are multiple factors that heavily affect the expatiation in the
nation.
As per views of Doherty, Dickmann and Mills, (2011) intention to make use of pool of
talented people is another reason for practice under which firms are inviting foreign people to
work in their nation. It can be observed that highly complex projects on IT are operated in the
UK but for doing so highly skilled labour force is not available in the mentioned nation. In order
to make project successful business firms are hiring Indian engineers on their projects. Thus, it
can be said that lack of good talent in the homeland is also one of the main reason that is
responsible for the high rate of Offshore outsourcing in the UK. It can be said that it is the one
of the main reason that is responsible for high level of Offshore outsourcing in the nation. It can
be said that firms are compelled to hire talent from outside the nation. There is no other option
available to them. Increase in cost and lack of talent are the two main prominent factors due to
which firm are focusing on involving foreign people in the projects.
Contrary to this Al Ariss, (2010) state the lack of talent cannot be considered as big
reason responsible for Offshore outsourcing of foreign people. This is because there are one of
the well-known education and technical university in the nation that are generating better and
highly qualified professional. Firms of foreign nations are doing innovation in the business
operations in specific domain and due to this reason their expertise developed in the specific
domain. On this basis it can be said that firms that are established in UK take service of
outsiders. Means that there are some areas where UK have expertise and its intellectual capital is
used to perform the project. But there are some areas where things are different and foreign
nations have better technology base. Thus, UK firms hire foreign people, so it is case of
specialization not lack of talent or cost of business operations.
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As per views of Wembridge, M., (2013) there are number of theories that are prepared in
last 15 years which state that there are benefits and limitations of the outsourcing. Mentioned
term acts as motivating factor for the business firms. There is a transaction cost theory which
state that two main costs are considered by the business firms like cost of production and
services as well as cost of coordination. In case firm instead of performing all activities
outsourcing is done then in that case coordination cost converted in to transaction cost.
According to this theory work is performed more efficiently when it is shifted to other company
instead of performing in house especially when production cost will be lower. Firms are
motivated to hire foreign people because their they need to pay less amount of money to foreign
employees to do specific task. This lead to decline in employee cost in business. This is the
motivating factor for the business firms.
Contrary to this Groom, (2013) state that there are some negative points that are
associated with employing foreign nations. In IT sector project going on for long time and firm
employed those foreign people that are employed in foreign company. Sometimes foreign firm is
not able to understand domestic company intentions properly and due to this reason lack of
coordination happened which negatively affect the business firm. It can be said that there are
both positive and negative points of Offshore outsourcing for the business firms.
To find out role that people preference for residing in foreign nation play in increasing
Offshore outsourcing in UK and organization role in making same real.
According to Jenkins and Mockaitis, (2010) in several nations of the world especially
those that comes in area South East Asia there is large population whose ambition is to do job in
the foreign nations like UK. Such kind of people either do a low level of work in developed
nations or do some course in these countries in specific domain. Foreign students easily got an
admission in the UK for studies and after completion of same people prefer to do job in UK. This
is because one got an opportunity to work in the foreign nation after completion of study. It can
be said that people preference to work in the foreign nation is the one of the main factor due to
which Offshore outsourcing is increasing at fast rate in the UK. There are number of university
like Cambridge University that is popular among the people for education system in the foreign
nations. Such kind of universities attract number of people from the foreign nations to come and
study in the UK for higher studies.
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Contrary to this Collyer, (2013) state people aspiration to do job or residing in foreign
nation is not the main reason due to which Offshore outsourcing takes place at higher rate in the
nation. This is because there are number of people that have aspirations to do work in the foreign
nation but all of them does not make an effort to get shift in the foreign nation. It is the firm’s
decisions to hire foreign people to do project. Thus, fact people aspiration to visit foreign nation
cannot be considered as big reason for expatiation of foreign people in the nation.
To evaluate contribution that foreign people living in UK play in elevating rate of Offshore
outsourcing in the UK
Accoridng to Tharenou and Caulfield, (2010) to great extent foreign people that reside in
the UK play an important role in reassigning Offshore outsourcing in the nation. It must be noted
that those foreign people that live in the nation are at higher post then they have high influence
power. Such kind of people easily make arrangements for the employment of their relatives in
the UK. Thus, consistent increase in expatiate people lead to fast increase in population of
foreign people in the nation. It can be said that consistent increase in population of foreign
people lead to more percentage increase in same.
Opposite to this Harrison and Michailova, (2012) state that even number of foreigners are
residing in UK its does not mean that they are promoting their relatives to visit UK for education
or job purpose. It can be said that foreigners that are residing in the UK are not very much
promoting their relatives to arrive in UK for job purpose. It depends on the individuals whether
they decide to do job in their own nation or foreign place. Thus, it can be said that foreign people
that are residing in the country are not playing any big role in promoting Offshore outsourcing in
the nation.
Conceptual framework on literature review
To identify factors that motivates firms to increase Offshore outsourcing in the UK
 Cost is the one of factor that acts as lucrative element and motivate firms to employ
foreign people on their projects.
 Firms want to ensure that equal opportunity is given to all employees and due to this
reason; they select foreign people for their domestic projects.
 Firms intend to make pool of talented pool for specific projects. Thus, firms select people
from foreign nations for their projects.
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 Many time project failed because foreign company is not able to understand need of
domestic firms.
To find out role that people preference for residing in foreign nation play in increasing
Offshore outsourcing in UK and organization role in making same real.
 People ambition to do job in foreign nation play an important role in motivating them to
migrate to other country. Firm decision to hire foreign people is the main reason due to which expatriation
happened.
To evaluate contribution that foreign people living in UK play in elevating rate of Offshore
outsourcing in the UK
 Relatives that are in foreign nation attract relevant people to come and do job in foreign
nation.
 It depend on individuals whether they intend to do job in foreign nation or own country.
Literature Gap
The research topic role of organizations and individual plays in elevation Offshore
outsourcing in UK is the vast topic. Researcher has involved factors that motivate firms to
increase Offshore outsourcing but still there are many other factors which have not been covered
in this study. Scholar has not covered role of local population in elevation Offshore outsourcing.
Government contribution has been discussed in the study because government plays significant
role in this respect.
4. RESEARCH QUESTION
 What are the main factors that motivate firms to increase Offshore outsourcing in the
UK?
 What role that people preference for residing in foreign nation play in increasing
Offshore outsourcing in UK and organization role in making same real?
 Explain contribution that foreign people living in UK play in elevating rate of Offshore
outsourcing in the UK?
5. AIMS AND OBJECTIVES OF THE PRESENT RESEARCH
Aim: To identify the role that organization and individuals play in elevation Offshore
outsourcing in the UK.
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Objectives of research
Research questions Research objectives
 What are the main factors that motivate
firms to increase Offshore outsourcing
in the UK?
 What role that people preference for
residing in foreign nation play in
increasing Offshore outsourcing in UK
and organization role in making same
real?
 Explain contribution that foreign
people living in UK play in elevating
rate of Offshore outsourcing in the UK?
 To identify factors that motivate firms
to increase Offshore outsourcing in the
UK.
 To find out role that people preference
for residing in foreign nation play in
increasing Offshore outsourcing in UK
and organization role in making same
real.
 To evaluate contribution that foreign
people living in UK play in elevating
rate of Offshore outsourcing in the UK.
6. RESEARCH METHODOLOGY Research type: There are two sort of researches namely primary and secondary research.
Primary research is one that is done for the first time by the researcher. This means that
facts values are collected by the researcher at his own level and none of part is collected
by the other person previously (Dickmann, 2012). On other hand, secondary research is
one under which data is already collected by the any person and same is used by the
researchers in its own research work. In the current research study both primary and
secondary data will be collected. Secondary data will be analysed under the section of
literature review in the report. Secondary data will be collected from the books, journals
and magazines. On other hand, primary data will be gathered by distributing
questionnaire among respondents. Collected data will be analysed by using specific
method. Research design: Research design include exploratory, descriptive and experimental
methods. All these research methods are different from each other. Exploratory research
design is used in the research when researcher does not have knowledge of research topic
and wants to know about research topic. On other hand, descriptive research method is
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one under which one does not know anything about the research topic and wants to know
more about same. Experimental research design is used when one conduct scientific
research. In the present research study exploratory research design will be selected
because in order to understand concept in proper manner first of all secondary data will
be collected and then primary data will be gathered (Research design, 2017). According
to selected research design appropriate technique of data collection will be used in the
present research study. Research approach: There are two sort of approaches that are used in the research
studies namely inductive and deductive approaches. Both of them are opposite of each
other. In case of inductive approach, first of all observation is done and on that basis data
is collected. Based on collected data pattern is identified, analysis of hypothesis is done,
and on that basis theory is formed. Whereas, in case of deductive approach theory is
identified and same is tested by using specific tool. In this regard, data is collected, it is
analysed, on that basis, theory is confirmed, and theory is tested. In this way, deductive
approach is used in the research. In the present research study, deductive approach will be
used and on basis of analysis of data theory will be developed.
 Research philosophy: In the research study two sorts of research philosophy are used
namely interpretivism and positivism. Interpretivism philosophy is one that is used when
one is conducting non-scientific research and positivism philosophy is one which is
conducted when one intends to conduct the scientific research (Panas and Pantouvakis,
2010). It must be noted that in the present research study non-scientific data will be
analysed and due to this reason interpretivism philosophy will be used in the current
research study. Sampling: It is the effective technique that supports in choosing right people from the
universe those who can give in-depth information about the subject matter. For the
present investigation researcher has chosen 25 foreign people those who are living in UK
since longer duration. Data collection methods: There are number of data collection methods that are used in
the research studies. Data can be collected by distributing questionnaire or by observing
others. In the present research study questionnaire will be distributed among the
respondents and then collected data will be analysed by using specific tool (du Plessis
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and Van Niekerk, 2014). There are number of merits of the data collection method
because under this it can be ensured that data is collected from the candidate that have
strong knowledge of the research topic. If same will be ensured then it can be said that
reliable data is collected in the present research study. Data analysis: In the research studies number of data analysis tools are used. In the
current research study in order to analyse the data thematic analysis method will be used
by the researcher. Under this approach, response received on each element of scale will
be analysed and charting of same will be done to identify the specific direction in which
there is need to make decisions. It can be said that there is huge importance of the data
analysis section for the present research study. Validity and reliability: Validity and reliability are the important factors on which one
need to pay due attention every time while research is conducted. This is because it is
very important to ensure that data that is collected in the present research are highly
reliable in nature. Apart from this, it must also be ensured that data is valid for the
research study. By doing so it can be ensured that research is carried out on right
direction and results generated by research are highly reliable in nature. It can be said that
there is huge importance of validity and reliability feature in the research.
 Ethical consideration: In the present research study all ethical norms will be followed
and under this it will be ensured that data that is collected from the respondents is highly
reliable in nature. This will be done by entering data in to excel sheet which will be
password protected (Soni and Kodali, 2012). Apart from researcher no one will be able to
access the data without permission. This will ensure that data is safe and no one can
misuse it for self-interest. It can be said that appropriate approach will be followed in the
present research study to ensure that information will remain safe.
7. PROJECT PLAN
Activity/quarters (3 months) 1 2 3 4 5 6 7 8 9 10 11 12
Comprehending requirements of research
project
Developing literature review section.
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Analysis of secondary data.
Developing aims and objectives.
Outlining the proposal of research project
Development of questionnaire.
Setting research methodology
Collecting primary data
Analysis of primary data
Writing down of all study according to the
assessment in research report
Preparing finding, conclusion section.
Developing final report
Submission of report
8. CONCLUSION
It is concluded that cost, residence of relatives in foreign nation and ambition to do job in
foreign nation are the one of motivating factors for people to migrate to foreign land. However,
some authors think that cost and residence of relatives does not play any role in expatriation of
people. It is desire to work in other country due to which people shift to other nation. From the
above discussion it can be articulated that foreign people those who live in the nation and
working at higher post then they have high influencing power. These people are able to make
arrangements for employment of their relatives in the UK. Consistent increase in expatiate
people lead to fast increase in population of foreign people in the country.
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9. REFERENCES
Books and journals
Al Ariss, A., 2010. Modes of engagement: migration, self-initiated Offshore outsourcing, and
career development. Career Development International. 15(4). pp.338-358.
Collyer, M. ed., 2013. Emigration nations: Policies and ideologies of emigrant engagement.
Springer.
Counsell, D., 2011. Chinese students abroad: why they choose the UK and how they see their
future. China: an international journal. 9(01). pp.48-71.
Dickmann, M., 2012. Why do they come to London? Exploring the motivations of onshorings to
work in the British capital. Journal of Management Development. 31(8). pp.783-800.
Doherty, N., Dickmann, M. and Mills, T., 2011. Exploring the motives of company-backed and
self-initiated onshorings. The International Journal of Human Resource
Management. 22(03). pp.595-611.
Du Plessis, H. and Van Niekerk, A., 2014. A new GISc framework and competency set for
curricula development at South African universities. South African Journal of
Geomatics. 3(1). pp.1-12.
Fechter, A.M. and Walsh, K., 2013. The new onshorings: Postcolonial approaches to mobile
professionals. Routledge.
Harrison, E.C. and Michailova, S., 2012. Working in the Middle East: Western female
onshorings' experiences in the United Arab Emirates. The International Journal of Human
Resource Management. 23(4). pp.625-644.
Harvey, W., 2012. Brain circulation to the UK? Knowledge and investment flows from highly
skilled British onshorings in Vancouver. Journal of Management Development. 31(2).
pp.173-186.
Jenkins, E.M. and Mockaitis, A.I., 2010. You're from where? The influence of distance factors
on New Zealand onshorings’ cross-cultural adjustment. The International Journal of
Human Resource Management. 21(15). pp.2694-2715.
Panas, A. and Pantouvakis, J.P., 2010. Evaluating research methodology in construction
productivity studies. The Built & Human Environment Review. 3(1). pp.63-85.
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Soni, G. and Kodali, R., 2012. A critical review of empirical research methodology in supply
chain management. Journal of Manufacturing Technology Management. 23(6). pp.753-
779.
Tharenou, P. and Caulfield, N., 2010. Will I stay or will I go? Explaining repatriation by self-
initiated onshorings. Academy of Management Journal. 53(5). pp.1009-1028.
Varma, A., Pichler, S. and Budhwar, P., 2011. The relationship between Offshore outsourcing
job level and host country national categorization: An investigation in the UK. The
International Journal of Human Resource Management. 22(01). pp.103-120.
Online
Groom ,B., 2013. [Online]. Available through :< https://www.ft.com/content/7e736f90-539e-
11e3-9250-00144feabdc0>. [Accessed on 26th July 2017].
Research design, 2017. [Online]. Available through :< http://research-methodology.net/research-
methodology/research-design/>.[Accessed on 23rd June 2017].
Wembridge, M., 2013. [Online]. UK Offshore outsourcing ‘minimal and restricted to smaller
companies. Available through:< https://www.ft.com/content/940913b2-ae64-11e2-bdfd-
00144feabdc0> [Accessed on 26th July 2017].
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