Myassignment.live is not sponsored or endorsed by this college or university
In the international business scenario, the business could confront from the stiff competition to operate their business acts to meet accountability. Moreover, the cost control is imperative aspect wherein the different methods are concentrated by the company like fair treatment in the organization, a strong mission, and co-operation (Baraldi, Proença, Proença, & De Castro, 2014). Business outsourcing function could be a crucial way of operating the business acts and make the decision accordingly. In addition, it is evaluated that business outsourcing is a key component that has been enhanced popularity in the recent era (Hernandez & Ona 2015). It acts is the business when the large company decided to give its routine job act to a third party company, which is effective to manage cost and time in the company (Pearce 2014). Through this method, most of the business acts are related to consumer care work as well as such acts could not be a key factor in the organization. But, at the same time, it is also founded that business outsourcing is an act which is generally used by big industry wherein the different functions and acts could be outsourced by a third-party company (Patil & Wongsurawat, 2015).
The primary purpose of this study is to critically examine the outsourcing of business functions. Hence, the following research objectives will be accomplished by the study:
Business outsourcing is the practice wherein job function act and any work form are assigned to another individual as well as firm. It is practiced to manage acts across the country. It is practiced to manage the job acts and enlarge its business acts across the country. Furthermore, business is identified as business acts that could be essential in a specified situation. For example, the organization desires to create and sell particular goods and services. But, it is not needed that same organization creates goods in their region due to the higher cost as compared to another state. Therefore, it can outsource this act of business to third party, company in which the cost of the product is lower. Hence, this activity could come under business outsourcing.
According to Schniederjans Schniederjans & Schniederjans (2015) core business function outsourcing is determined as the procedure of business wherein corporation outsources their some function to the third party due to managing each activity and make the decision accordingly. For example, most of the organization has outsourced their telephonic section and managing the customer business acts to the third party, which has the capability to run the business acts of the firm and make the decision accordingly. It could be effective in outsourcing business activity. Moreover, it is evaluated that business outsourcing being a larger industry that is identified as the BPO (business process outsourcing).
In support of this, Kumari Singh Mishra & Garza-Reyes (2015) stated that organization could outsource their many activities such as housekeeping abilities of the office building as well as janitorial services. This activity could be effective for the firm of service management as the new business practices flow. It is also stated that outsourcing is determined as the business approach that assigns the process, decision, and functions for the firm to a third-party firm. It could be operated by negotiating an agreement as well as contract with vendors that takes the responsibilities for the customer service, production process, services quality, and individual management. This process could be effective for declined organization expenses.
Glaister (2014) business function outsourcing is effective for the organization as it offers a possibility to manage the time, money and efforts on the specified task that are a little bit boring as compared to other. In the current business era, it is effective for the firm to outsource its business acts due to saving their cost as well as time. The business outsources could facilitate to firm for making a reliable decision in the context of current matter. It is stated that customer care acts are effective for managing human resources, which could be effective in declining the expenses of the business acts of financial organization.
In support of this, Patil & Wongsurawat, (2015) stated that the organization could use the outsourcing activities to deal with customer issues and make decision activity. Moreover, the consumer could care is not more acts of the business as the telecommunication organization could outsource their business acts and works especially for managing the time and cost of the business, which will be effective in sustaining the business in the current era. The outsourcing chain is effective for the different industry segment to secure their cost as well as time. In the recent era, a huge number of the third-party firm that is engaged in acts as the outsourcing acts as the diverse business activities could be outsourced.
Yang & Zhao (2016) examined that cost saving is the key benefits of business outsourcing functions. It could outsource facilitates business to weakening the administrative space administration, workforce’s compensation expenditures and other additional costs associated with delivering workspace. It could be imperative for declining the setup and free up resources in other intentions. It is stated that outsourcing also enables the organization to categorize their business activities and make a decision in favor of the research matter. It is also examined that when the organization goes outdoor its ability then it can outsource its process business, which will be effective to concentrate on the core corporate. For example, if the grocery store desires to enhance the florist in its operations then the organization should outsource acts to concentrates to concentrate on the grocery business.
In support of this, Hunter Saunders & Constance (2016) stated that business outsourcing is effective to enhance their quality. It could be effective for quality can be accomplished the vendors with more specialized procedure and expertise. For illustration, the organization makes an agreement in cleaning facilities. It is examined that outsource could also be effective for making a reliable decision. It is examined that outside abilities are prominent assent in delivering suitable recruiting, staffing, and training for delivering the inspections that could not exist in the case was performed in the house.
On the other hand, Rekik Boukadi & Ben-Abdallah (2015) examined that the advantage of having the vendor contract is that as organization bounds to deliver a certain service with higher quality. For example, when IT activities of the business are outsourced as well as the professional call at the time sick then it is the accountability of the vendors to identify another person for the replacing them and meet the existing needs. Consequently, business outsourcing is effective in offering customer satisfaction for the higher extent.
Apart from this, Ahmed Capretz Sandhu & Raza (2014) examined that business outsourcing functions could be effective in improving the operational effectiveness of the firm. Moreover, it offers the opportunity to the firm to obtain quality services from a vendor’s specialized structure. Specialization enables higher effectiveness and facilitates to complete the prompt time and cost. Moreover, it is also founded that the ability could be created additional capacity that could be generated from outsourcing because the contract could be canceled when demand diminishes rapidly as compared to closing down whole plants owned by a corporation. Hence, it is evaluated that outsourcing is effective to enhance flexibility in the firm.
On the other hand, (2016) examined that larger organization address easier to create a contract with vendors that have trained individual and have efficiency in the particular acts than to hire the individuals in the team and afterward trained them to particular acts. In this case, a vendor could be selected by the organization who has the great involvement of standard operating process. It is a significant reason for business outsourcing functions as it could be effective for the performance of the organization. A significant cause of outsourcing the business function is to make an enhancement in business performance as outsourcer companies provide the opportunity at the larger economy of scale.
Apart from this, Cavusgil Knight Riesenberger Rammal & Rose (2014) stated that if the consumers could care about the division then the bank could be accountable for managing the customer care services and make a decision in the favor of the organizational functions. Consequently, it will enhance the productivity of the firm. But if the organization outsourced their function in the minimum cost then they could be capable to manage business accordingly and increase the possibilities of getting the higher outcome. Hence, a bank should concentrate on its core acts of banking and could make their higher efforts in increasing its consumers base. In the recent period, outsourced vendors could manage the consumer care services of a firm which could offer an opportunity to get the opportunity and make the decision accordingly. It is examined that an engaged group is a person who is accountable for offering customer services and could give and reliable consumer services to the firm. However, these outsource acts could be performed by effective or specialist human resources. Moreover, it is evaluated that vendors could increase the consumer's services quality by delivering feedback to the financial organization as well as enables the alternatives to increase customer care services.
Oshri Kotlarsky & Willcocks (2015) stated that the business outsourcing acts could directly impact on the overall productivity of the firm by creating the risk in the business activity. For illustrations, if an organization could make a call and there is an issue in a specific part then those part could be outsourced due to the defectiveness. The car holder could not take any kind of burden for correcting the damaged parts and influence the overall image of the car. The outsourcing activity could be a tool that assists the firm in managing their activity and makes improve the overall process of the firm.
In support of this, Nielsen Mitchell & Nørreklit (2015, March) stated that the vendors could also make a favorable image of the faulty products by eliminating the negative perception of consumers. A small mistake of the vendor could impact on the sale of products and services. Outsourcing is an activity that could decline the service quality of the firm unless an agreement identifies the measurable process due to the many reporting sections of activities. There are many agreements that globally leave to the service stages which could facilitate to secure the cost of the firm.
On the other side, Oshri Kotlarsky & Willcocks (2015) examined that business outsourcing manages the language barriers for the executives of the company. For illustration, if the consumer is outsourced into another country then the organization requisites to communicate in the diverse languages. Therefore, it could increase the dissatisfaction level between consumers because of language barriers at a higher extent. Outsources of business functions could make fear among employee with respect to job security. Consequently, it declined efforts to perform well in a systematic way. Thus, there is requisite of managing the opinions and views of the employee's views with the higher grace to improve the efficiency and increase the possibility of getting positive responses.
Apart from this, Gerbl McIvor Loane & Humphreys (2015) stated that organizational knowledge could create difficulties for the firm at the time of outsourcing of business functions and work accordingly. It is also stated that outsourced employees have not the same knowledge and passion for the passion of an organization as a permanent workforce. It is evaluated that outsourced workforces could be hired on the agreement basis and them not highly skills and knowledge towards with respect to their allocated work. Hence, it could directly impact on the consumer experience (Sople, 2016).
On the other side, Lahiri (2016) examined that security, as well as compliance, could be determined as the formal credentials. The outsource procedure could be managed and make their outsource procedure that could be managed as well as assure that there is concentration to the legal as well as structure security. It is also stated that outsourcing could create ethical as well as legal issues in outsourcing, which will inverse impact on organizational performance. It is stated that there are certain incidents that are associated with the human and ethical rights of violation about outsourcing manufacturing services.
Amanullah Azhana Ab Aziz Hadi Hanis & Ibrahim (2015) examined that outsourcing activity could decline the overall outcome of the study. Another illustration of outsourcing could occur at the time of diversify business acts and make a decision accordingly. The problem discusses could be effective in managing ethical as well as ethical norms. Moreover, there are many employees who are innocent as well as workforces have lost its lives which could be effective in business outsourcing. It is also evaluated that ambiguities could create at the time of job activity that has outsourced to the third party firm.
In support of this, Giri & Sarker (2017) stated that the organizations who make contract might have ethical, legal, and moral accountability for avoiding such issues and operate the business accordingly. It is also analyzed that the product quality could be outsourced in the case of outsourcing the quality of services has been influenced that could decline the sale of the products and services. It might decline the probabilities of increasing the sustainability of the firm. It is probabilities that vendors do not evaluate the implication of the business process as well as quality standards, which might be affected by the organization reputation that are outsourced their functions to the third party (Pearce II, 2014).
Dinu (2015) stated that the additional barrier at the time of outsourcing the business functions is that it could create the language barrier for the firm as it is being a major issue for the firm. It could create the conflict ta the workplace which will influence the overall outcome of the firm. The business procedure outsourcing is highly influenced due to their language issues, which could be a major issue for the firm. Furthermore, if the services of an organization are outsourced then there is a higher risk of losing the confidentiality of information. It could also influence the overall outcome of the study (Taran Boer, & Lindgren, 2015).
This study has been conducted on 50 employees of vodafone as it make limitation for getting the responses. The one place of data colelction could be decline the probability of getting quality result. The researcher has also use the mixed datta collection that could also humper to the quality of reesarch outocme.
This research is effective for comprehending the menaining and concept of business outsourcing It could support to comprehend the advatatges of business outsourcing. Moroever, this study is effective in geting information towards many disadavtages business outsourcing that company has follwed.
With respect to the overall discussion, it can be summarized that outsourcing is an activity that occurs at the time of many activities occur in the organization and each activity could affect to the image of the firm. In such a situation, the organization could use the outsource their activity to the third party to effectively operate each activity of the business. It can also be summarized that outsourcing activity could be positive as well as a negative impact on the organization productivity. There are certain advantages that could be obtained by practicing the business outsourcing functions named managed many activities, competitive benefits, higher consumer satisfaction, and task goal meet on time. Apart from this, it is found that there are disadvantages that might be occurred at the time of implying business outsourcing named language barrier, quality services, and higher conflict among employees.
Ahmed, F., Capretz, L. F., Sandhu, M. A., & Raza, A. (2014). Analysis of risks faced by information technology offshore outsourcing service providers. IET Software, 8(6), 279-284.
https://ir.lib.uwo.ca/cgi/viewcontent.cgi?article=1103&context=electricalpub
Amanullah, A., Azhana, A. N., Ab Aziz, N. F., Hadi, A., Hanis, N., & Ibrahim, J. (2015). Comparison of Business Model Canvas (BMC) among the three consulting companies. International Journal of Computer Science and Information Technology Research, 3(2), 462-471.
https://s3.amazonaws.com/academia.edu.documents/37688893/The_Business_Model_Canvas_BMC_Comparison_Among_IJCSITR.pdf?AWSAccessKeyId=AKIAIWOWYYGZ2Y53UL3A&Expires=1556351776&Signature=H9rDRma8AcZ%2FcWMq9DRHUxMJ4EE%3D&response-content-disposition=inline%3B%20filename%3DThe_Business_Model_Canvas_BMC_Comparison.pdf
Baraldi, E., Proença, J. F., Proença, T., & De Castro, L. M. (2014). The supplier's side of outsourcing: Taking over activities and blurring organizational boundaries. Industrial Marketing Management, 43(4), 553-563.
https://www.sciencedirect.com/science/article/abs/pii/S0019850114000236
Cavusgil, S. T., Knight, G., Riesenberger, J. R., Rammal, H. G., & Rose, E. L. (2014). International business. Pearson Australia. https://sisis.rz.htw-berlin.de/inh2011/12398650.pdf
Dinu, A. M. (2015). The risks and benefits of outsourcing. Knowledge Horizons. Economics, 7(2), 103.
http://orizonturi.ucdc.ro/arhiva/khe7nr2/Dinu1.pdf
Gerbl, M., McIvor, R., Loane, S., & Humphreys, P. (2015). A multi-theory approach to understanding the business process outsourcing decision. Journal of World Business, 50(3), 505-518.
http://www.downloadmaghaleh.com/wp-content/uploads/9486.pdf
Giri, B. C., & Sarker, B. R. (2017). Improving performance by coordinating a supply chain with third-party logistics outsourcing under production disruption. Computers & Industrial Engineering, 103, 168-177.
https://www.sciencedirect.com/science/article/abs/pii/S0360835216304387
Glaister, A. J. (2014). HR outsourcing: the impact on HR role, competency development, and relationships. Human Resource Management Journal, 24(2), 211-226.
https://onlinelibrary.wiley.com/doi/abs/10.1111/1748-8583.12031
Hernandez, A. A., & Ona, S. E. (2015). A Qualitative Study of Green IT Adoption within the Philippines Business Process Outsourcing Industry: A Multi-Theory Perspective. International Journal of Enterprise Information Systems (IJEIS), 11(4), 28-62.
https://www.researchgate.net/profile/Alexander_Hernandez4/publication/289556099_A_Qualitative_Study_of_Green_IT_Adoption_within_the_Philippines_Business_Process_Outsourcing_Industry/links/5a7e3e34a6fdcc0d4ba82ad0/A-Qualitative-Study-of-Green-IT-Adoption-within-the-Philippines-Business-Process-Outsourcing-Industry.pdf
Hunter, I., Saunders, J., & Constance, S. (2016). HR business partners. Routledge.
Kumari, S., Singh, A., Mishra, N., & Garza-Reyes, J. A. (2015). A multi-agent architecture for outsourcing SMEs manufacturing supply chain. Robotics and Computer-Integrated Manufacturing, 36, 36-44.
https://www.sciencedirect.com/science/article/abs/pii/S0736584515000071?via%3Dihub
Lahiri, S. (2016). Does outsourcing really improve firm performance? Empirical evidence and research agenda. International Journal of Management Reviews, 18(4), 464-497.
https://onlinelibrary.wiley.com/doi/pdf/10.1111/ijmr.12075
Nielsen, L. B., Mitchell, F., & Nørreklit, H. (2015, March). Management accounting and decision making: Two case studies of outsourcing. In Accounting Forum (Vol. 39, No. 1, pp. 66-82). Taylor & Francis.
https://onlinelibrary.wiley.com/doi/pdf/10.1111/ijmr.12075
Oshri, I., Kotlarsky, J., & Willcocks, L. P. (2015). The Handbook of Global Outsourcing and Offshoring 3rd Edition. Springer.
http://citeseerx.ist.psu.edu/viewdoc/download?doi=10.1.1.894.6696&rep=rep1&type=pdf
Patil, S., & Wongsurawat, W. (2015). Information technology (IT) outsourcing by business process outsourcing/information technology enabled services (BPO/ITES) firms in India: A strategic gamble. Journal of Enterprise Information Management, 28(1), 60-76.
https://www-emeraldinsight-com.ezproxy.cqu.edu.au/doi/full/10.1108/JEIM-09-2013-0068
Pearce II, J. A. (2014). Why domestic outsourcing is leading America's reemergence in global manufacturing. Business Horizons, 57(1), 27-36.
https://www.researchgate.net/profile/John_Pearce4/publication/259085388_Why_domestic_outsourcing_is_leading_America%27s_reemergence_in_global_manufacturing/links/5b01d927a6fdccf9e4f65800/Why-domestic-outsourcing-is-leading-Americas-reemergence-in-global-manufacturing.pdf
Rekik, M., Boukadi, K., & Ben-Abdallah, H. (2015). A decision-making method for business process outsourcing to the cloud based on business motivation model and AHP. IJCC, 4(1), 47-62.
https://www.researchgate.net/profile/Mouna_Rekik/publication/276806351_A_decision-making_method_for_business_process_outsourcing_to_the_cloud_based_on_business_motivation_model_and_AHP/links/55eeb51f08ae199d47bf15ef.pdf
Schniederjans, M. J., Schniederjans, A. M., & Schniederjans, D. G. (2015). Outsourcing and insourcing in an international context. Routledge.
https://doi.org/10.4324/9781315701936
Sople, V. V. (2016). Business process outsourcing a supply chain of expertise. PHI Learning Pvt. Ltd.
Taran, Y., Boer, H., & Lindgren, P. (2015). A business model innovation typology. Decision Sciences, 46(2), 301-331.
https://www.researchgate.net/profile/Harry_Boer/publication/275588959_A_Business_Model_Innovation_Typology/links/5ab415c8aca272171003ca31/A-Business-Model-Innovation-Typology.pdf
Yang, Q., & Zhao, X. (2016). Are logistics outsourcing partners more integrated into a more volatile environment?. International Journal of Production Economics, 171, 211-220.
https://www.sciencedirect.com/science/article/pii/S0925527315003746
To export a reference to this article please select a referencing stye below:
My Assignment Help. (2022). Accounting Principles II. Retrieved from https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html.
"Accounting Principles II." My Assignment Help, 2022, https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html.
My Assignment Help (2022) Accounting Principles II [Online]. Available from: https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html
[Accessed 06 September 2022].
My Assignment Help. 'Accounting Principles II' (My Assignment Help, 2022) < https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html> accessed 06 September 2022.
My Assignment Help. Accounting Principles II [Internet]. My Assignment Help. 2022 [cited 06 September 2022]. Available from: https://myassignment.live/free-samples/acct2023-accounting-principles-ii/financial-statements-of-the-business-file-A1D39FE.html.
Are you confident that you will achieve the grade?
Our best Expert will help you improve your grade
If you are the original writer of this content and no longer wish to have your work published on Myassignment.live then please raise the content removal request.