Outsourcing In Business Arena Essay


Discuss about the advantages and disadvantages of outsourcing in Business Arena.



The first two research works are based on the advantages and disadvantages of outsourcing in business arena. The first assignment is a review of literature on the advantages and disadvantages of outsourcing whereas the second assignment is a research proposal on the same topic. Outsourcing is a common business function in the 21st century. In the Post-Ford business model, the production firms of the different parts of the same product have become segregated (Koch 2017.). Various goods and services are supplied from other companies due to cost affectivity, better productivity and quality to larger Corporations (Egresi 2016). These job functions which are done outside a company yet are among the important for the organisation is known as an outsourcing job. This research has enriched my knowledge about the growing employment in the developing countries because of cheap labour prices and made me conscious about the business functioning of the corporations. The sublime functioning of communication and its combination with enormous productivity among the business giants have made me aware about the enormous potential of technology and outsourcing in the modern business world.

Learning Experience

The entire learning experience was non-traditional. It was based on websites, media reports, business reports and other research materials in one hand and random sampling on the other hand. Both the primary and secondary sources were taken into account for this research. This experience of research has made me more confident and self sufficient for my future career responsibilities. It has prepared me for the upcoming challenges in life. The large canvas of the research has made me more knowledgeable about various departments which are outsourced. The research focuses on all the sectors which are outsourced form large Corporations like IT, Human resource, Accounting, Marketing research, Production, Customer Care Services and Legal help.

Utility of Learning Process

This research has a variety of utilisations in academic and professional fields. It will play an important role in various levels of personal and professional life. It will play a role in the course, program, future career and personal life.

  • Course: The understanding of the advantages and the drawbacks of the outsourcing job function has presented me a holistic view about world business. This has been instrumental in concluding my course on a right note.
  • Program: The entire research was based on authentic means and practical procedures. This research is a learning process for me and has been instrumental in affecting my point of view on the world business operations in this program.
  • Future Career: These research materials were based on authentic secondary sources and random sampling. This materials and the information it offers can be helpful to various organisations. Therefore, the utility of this research can elevate my future prospects as a professional.
  • Impact on Personal Life: Collecting such authentic and useful information was difficult and industrious for me. The amount of conversations and voracious reading I had to do for this research have personally helped me in understanding the world economy in a much more profound way.

Lessons learnt

This research has elevated my knowledge about the utilisation of outsourcing job functions by corporations and its drawbacks. This helped me to understand the methodology and the concepts of an academic research in a more holistic way.

During the first assignment I got acquainted to the significance and existence of the term called outsourcing and got to know about its business functions in the Post-Ford business model. The outsourcing has advantages along with severe drawbacks in the business world. The outsourcing functions include both goods and services (Schniederjans, Schniederjans and Schniederjans 2015). The process of outsourcing can be both temporary and permanent.

The second assignment is a research proposal on the same topic. The material proposes a questionnaire which is to be used in the sample survey among the managers and supervisors of the various corporations. The research has also made me realize about the never endingly growing business opportunities around the world and the enormous function of outsourcing in the industrialisation of many developing countries across continents.


Outsourcing can be functional in almost all the sectors of a company including IT, Human Resource, Production, Marketing and others. The major advantages of outsourcing are its cost effective nature because of the savings that the company do in terms of employee salary and saving of office space. Outsourcing also helps a company to concentrate in its core business. As business has several branches, sometimes the company is not able to control all the sectors (Rashid 2016). The outsourcing functions help the company to concentrate on their primary strength. The other advantages like quality production, smooth functioning and customer satisfaction are also important advantages of outsourcing (Oshri Kotlarsky and Willcocks 2015). However, there are a lot of disadvantages of outsourcing. As the entire service or production is dependent on somebody who does not belong to the structure of the company, the quality of the product or the service is always a matter of concern (Hill, Jones and Schilling 2014). Other disadvantages like problems in communication, employee opinion, and security problems along with others were also mentioned in the research (Tate 2017).

The second assignment was a research proposal on the advantages and disadvantages of the outsourcing job functions around the world. I programmed this research both on primary and secondary sources. The research comprised of a sample survey on the managers and supervisors of different companies on the advantages and disadvantages of outsourcing. This research helped me to understand the processes of conducting a research through sample survey. I realized that the inherent cost effective nature of outsourcing job functions. This advantage of outsourcing job functions overpowers all its inabilities and limitations (Rost 2016).

Learning Process

The learning process was exciting and enjoyable for me. The first assignment was based on various media reports, research materials, books and websites whereas the second research was based on both primary and secondary sources.

Insight: The research has made me realize the fact that a company can collaborate with each other in a professional manner for the benefit of both the corporations. This collaboration not only elevates the quality and quantity of the products and services but it has also reduced the liabilities of these corporations.

Connections with other learning: The assignments dealt with the practical information of the world economy and market. Therefore, it was inclusive to all other aspects of a business corporations like marketing, production and all others. I have gained a good understanding of all the aspects of a business corporation through this.

The research will be useful for me in the future and its importance among the global corporations will grow with time. As the communication and technology infrastructure around the world is growing, this job function will also reach greater heights of importance in the business world (Maley 2015).

Application of the Knowledge and conclusion

The information which is gathered by this research can be useful for further research as well as for the organizations in analysing the advantages and disadvantages of the outsourcing and the questions it has been raising. Moreover, the identification of the viability of outsourcing functions in increasing the productive quality and profit maximisation can be useful to any corporations around the world (Magelssen, Sanchez and Damanpour 2015). As the research materials are based on the experience of managers and supervisors it is very valuable.

The natural insight which I have perceived during the journey of the research is about the advantages of outsourcing. The outsourcing not only helps in the reduction of the production cost but it also decreases the workload of the main firm. In addition to all these, it also ensures a stable job for the main corporation as the labours that are working as freelancers or as outsourced workers are paid much lesser in compared to them.


Egresi, I., 2016. Post-Fordism, Alternative Tourism and Sustainability. In Alternative Tourism in Turkey (pp. 271-283). Springer International Publishing.

Hill, C.W., Jones, G.R. and Schilling, M.A., 2014. Strategic management: theory: an integrated approach. Cengage Learning.

Koch, M., 2017. Roads to post-Fordism: labour markets and social structures in Europe. Routledge.

Magelssen, C., Sanchez, F. and Damanpour, F., 2015, January. Learning from Outsourcing: The Effects of Outsourcing Strategy on Organizational Efficiency. In Academy of Management Proceedings (Vol. 2015, No. 1, p. 17468). Academy of Management.

Maley, J.F., Kowalkowski, C., Brege, S. and Biggemann, S., 2015. Outsourcing maintenance in complex process industries: Managing firm capabilities in lock-in effect. Asia Pacific Journal of Marketing and Logistics, 27(5), pp.801-825.

Oshri, I., Kotlarsky, J. and Willcocks, L.P., 2015. The Handbook of Global Outsourcing and Offshoring 3rd edition. Springer.

Rashid, N.I., 2016. Benefits and Effects of Outsourcing Strategy on Project Performance in Tanzania: The Case of DART and NICTBB (Doctoral dissertation, UTAR).

Rost, J., 2016. The insider's guide to outsourcing risks and rewards. CRC Press.

Schniederjans, M.J., Schniederjans, A.M. and Schniederjans, D.G., 2015. Outsourcing and insourcing in an international context. Routledge.

Tate, W.L., Tate, W.L., Bals, L. and Bals, L., 2017. Outsourcing/offshoring insights: going beyond reshoring to rightshoring. International Journal of Physical Distribution & Logistics Management, 47(2/3), pp.106-113.

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