Introduction
Contracting and outsourcing of goods and services are not new. Those who dismiss contracting as nothing more than the latest in a series of short-lived management fashions should take a longer look back in time. Outsourcing refers to the process whereby activities traditionally carried out internally are contracted out to external providers. The term contracting has been used in a generic way to describe both the process of outsourcing or the search for and appointment of contractors for the provision of goods and services and the execution of the contractual relations needed to support such activities (Domberger 1998). The proposed paper wants to evaluate the advantages and disadvantages of Outsourcing in various Industry sectors and understanding how outsourcing has influenced the business operations.
Aims of the study
Research questions
Literature review
Outsourcing is a managerial practice which now penetrates all companies' functions such as R&D, production, logistics, information systems and networks, and distribution inter alia and activities. From the analytical and performance points of view, such a movement poses important problems. From a theoretical point of view, this question refers to the problem of the organization’s boundaries. From an operational point of view, the principal criterion used by the decision makers is that of the focus on the so-called core business. But applied to intangible activities, such a principle quickly reaches its limits. This principle is doubly contingent: an outsourcing decision depends on the one hand on the moment in the company's history at which it finds itself and, on the other hand, on the identity of the leader and the extent of his discretionary power. In outsourcing decisions, for example, differentiation between tacit knowledge and explicit knowledge is important, since it underlines their dynamic complementarity. In the case of the transfer of an activity in which the tacit dimension is prevalent, it is obvious that the transferring organization loses a key share of its intangible heritage, necessary to its competitiveness. This is all the more important to note as in many outsourcing contracts, the customer is not at all in a position to master the allowance of externalized human resources. It is also advisable to add that the fragmentation of resources necessarily resulting from outsourcing carries in itself some risks of the destruction of processes of knowledge creation which until now have been under the control of the organization (Bounfour 2003). It is true that outsourcing reaches all parts of the business but it cannot be fully said that outsourcing can alter the operations and processes of a business.
Research design
The research will make use of interpretative approach to evaluate the advantages and disadvantages of outsourcing in various industry sectors and understanding how outsourcing has influenced the business operations. Interpretative approach focuses on gathering insights from an individual through delving into a certain event. Interpretative approach wants to gather information by using someone's experiences that is related to the core of the research. In an interpretative approach the data is acquired from participants by using interviews or other tools that require personal correspondence. In such approach, the researcher needs to be flexible and should be open for any possibility (Schostak 2006). The interpretative approach will not violate any ethical standards. As the study is conducted ethical issues such as the privacy of respondents or security of data would be highly regarded.
Timescale
The proposed paper will involve five stages. The first stage involves gathering data and determining the sources of information. This stage will be done in one to two weeks. The second stage will focus on constructing the paper and determining the potential problems that might be encountered. This stage will be done in two to three weeks. The third stage will focus on completing the data gathering process and proceeding with interacting with the respondents to the study. This stage will be done in a month. The fourth stage will focus on analyzing the results of the study. This will take two to three weeks. The last stage will focus on finalizing the paper. In this stage everything has been constructed and the problems had been surpassed. This stage will take one to two weeks.
References
Bounfour, A 2003, The management of intangibles: The
organization’s most valuable assets, Routledge, London.
Domberger, S 1998, The contracting organization: A strategic
guide to outsourcing, Oxford University Press, Oxford.
Schostak, J 2006, Interviewing and representation in qualitative
research, Open University Press, Maidenhead, England.
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