A Study of the Impact of Outsourcing on the Global Marketplace - Research Proposal Example

Your Degree Research Proposal: A Study of the Impact of Outsourcing on the Global Marketplace Table of contents [Your Degree 0 Research Proposal: A Study of the Impact of Outsourcing on the Global Marketplace 0 0 Table of contents 1 Part 1: 2 Working Title: 2 Purpose of Research: 2 Research Questions: 3 Scope: 3 Part 2: 6 Research Methodology: 6 Research paradigm 8 Validity and Reliability: 10 Data sources 11 Data collection methods 12 Data analysis and conclusion 13 Proposed Timeline: 14 Bibliography 15 Part 1: Working Title: This research is a study of the impact of outsourcing on the global markets. With the high levels of globalisation the need for a stronger market presence across the global markets has also increased. However before going into this it is essential to note the meaning of globalisation. Globalization involves internationalism, which in a number of cases can be misleading as global generally means ‘one world’ whereas international can be construed to different languages, people, cultures, borders, economies, and even ecosystems (Patapan, 2007). Globalization is the process of speedy yet steady change and integration of countries and the occurrences that happen with the use of foreign trade and a lot of foreign investments (Kennedy & Sharma, 2009). Globalization can be expressed as newer opportunities and possibilities for action among people across the world. Over the years with the growing levels of globalisation, has led to several changes in the society and has mainly had an impact on the businesses and outsourcing of their processes. Purpose of Research: The main purpose of this research is to identify if outsourcing a business can help in development of the markets for the company. The main purpose of the research is to include as many examples as possible to differentiate and highlight the success that companies have faced with the process of outsourcing and if companies do in fact have any form of benefits that they gain from outsourcing of the processes. The purpose of this research is to investigate and bring out the benefits (if any) of outsourcing. The paper will also deal with providing a comparison of companies that have outsourced their business when compared to others that have not. The purpose is also to analyse if the benefits are to the same extent in different sectors and industries. Research Questions: 1. Relationship between the development and success levels of a company and outsourcing 2. Relationship between the level of global expansion and outsourcing 3. Benefits of Outsourcing versus the in-house processing 4. Effects of Outsourcing on the businesses and their positions 5. Identifying the winners in various fields and analysing the success factors of the business Scope: Over the years there have been several different benefits that have been expressed to be the benefits of outsourcing processes to different companies. Several major companies have been known to have benefited to a great extent due to outsourcing in almost every industry. One of the major countries to which companies outsource their processes and functions includes India and China (Dominguez, 2005). There have been numerous reasons for outsourcing and numerous reasons that have been listed over and over again as the benefits of outsourcing. A few of these include, Saving funds on manpower and training costs, reduced overheads and capital expenses, improved speed, service, improved customer service, value added services, and including the enhancement of the tactical and strategic competitiveness (Brown, Wilson, 2005). In a research that has been conducted in 2005, “I believe the future belongs to those who don’t know what they can’t do. This report is an important and timely brain trust of global knowledge, representing IT visionaries and thought leaders from all over the world. This report is a catalyst for discovering and targeting the dynamic emerging markets for technological frontier outsourcing/ off shoring and identifying the next wave of winners in technology outsourcing, even before trends and problems can emerge. We are creating answers for bringing the future to life, today” (Minevich & Richter, 2005). The paper also adds that there are seven dimensions of competitiveness. These include aspects like geopolitical risk, cultural risk, human capital risk, economic risk, IT Infrastructure risk and also the IT competency risk. The paper will also discuss an essential concept of global outsourcing index. Mark has explained that the Global Outsourcing Index is a need and is a very effective tool that can be used to provide businesses with a community baseline. He also moves on to explain that global outsourcing index is the first step for the right outsourcing process. He also explains that a lot of relevant information regarding the specific countries and the possible advantages of outsourcing to them can be found very easily on the whiteboards (Minevich & Richter, 2005). Although the topic looks very vast and the topic seems to be a little vague, the paper will develop and gain shape when the literature review is completed. The paper will also include a study of companies that have outsourced versus the list of companies that have not, and a comparison is made to analyse the impact of outsourcing on the businesses (Minevich & Richter, 2005). The research will also touch upon major concepts that relate to outsourcing and will also provide a few insights into the current outsourcing trends. In the research done by Mark, he has highlighted several aspects of business like the difficulties faced by the businesses. Mark explains that the businesses are now a global concern and that organisations have major operations that are spread across the world. He has also forecasted that it would take at least twenty years for the businesses to outsource all their activities to the non Western European/ non – North American countries (John K. Halvey & Barbara Murphy Melby, 2007, Minevich & Richter, 2005). Also some interesting insights and comments from other major contributors of the field include the very interesting insight by William Sanford. He explained that the US was faced with a massive outsourcing push when the economic environment was low and the he also mentions that since then, the outsourcing has also seen a considerable decline as the expectations have not been met. Also with the growing political issues and bad vibe of outsourcing across the globe, the dollar has been faced with an increase in costs rather than a decrease in the costs. He expresses that for the large companies outsourcing is a mode of testing the waters for any possibilities of expansions (Minevich & Richter, 2005). Gaining a better insight into the expert comments will assist this research is developed to a greater extent. Experts like Derek Stephen have highlighted, that one of the possibilities in the future is where there will be an increase in the outsourcing to the third parties. These third parties can also be expected to then re - outsource off shore. However this is mainly for companies that find it difficult to outsource off shore themselves due to the lacking skills and processes. He also explained that companies like IBM will become the major crux of the outsourcing business and this will lead them to take economies of scale. This will also allow the company to show historical performance and also lead to long terms relationships and partnerships. Here he highlights that the process of outsourcing is one which needs experience, skills and process and it is important that the individual companies focus on the competencies to be able to cope with the process of outsourcing (Minevich & Richter, 2005). There is a high level of scope for this topic and the topic. Since there have been numerous researches and studies that have been done in this field, this research will try to develop a research which reaches out to gain the views and the expert advice pertaining to outsourcing (Power, Desouza, Bonifazi, 2006). Also as seen in the previous sections, the main aim of this research is to analyse the benefits that companies have gained from the process of outsourcing (Ashley, 2008). The research will also be based on the level of improvements that have been noted in companies that do not use the option of outsourcing and a comparative analysis of the two will be made. Part 2: Research Methodology: This part of the proposal describes the research approaches and methodology which will be utilised in the proposed research. It also provides an overview of the data collection methods, the type of data to be used and the method of data analysis. These will be linked to the theories and modules outlined in the literature review. There are two basic types of research, namely, qualitative and quantitative research. Hussey and Hussey (1997) consider these two methodologies to be at the two extremes of the research continuum. Qualitative Research: Qualitative research takes into account an in-depth view of behavior patterns of people. It aims at finding the reasons behind each aspect of behavior or trend that is displayed. It becomes an answer to the how and what for the decision making unlike quantitative method being results of questions related to the what, when and where aspects (Jobber, 2004). Qualitative or phenomenological methods tend to produce rich intensive data relating to small numbers of people and moreover, they tend to provide more contextual data – which adds value to other data – while acknowledges the fundamental complexity of certain social phenomena (Walker, 1985). Hence, qualitative research need not have a very large sample; however a focused sample is necessary which helps the classification of data into patterns so as to form the basis for interpretation of results and for report making and organizing the results (Saunders, et al, 2000; Housel & Nelson, 2005). Quantitative Research: Quantitative research is a systematic method of investigation of quantifiable properties and entities (Jobber, 2004). It is a scientific method used both in social as well as other research forms. Generally, quantitative research is a repetitive process for evaluation of results and hypotheses. It is a positivistic approach that “Seeks the facts or causes of social phenomena, with little regard to the subjective state of the individual.” (Hussey & Hussey, 1997, p52). The chief aim of quantitative research is apply mathematical techniques, hypotheses, theories and tools so as to have quantifiable results. The results are measured and scaled indicating the connection between mathematical models and empirical expressions of relationships that are quantitative in nature (Saunders, et al, 2000). Chosen Methods: As mentioned earlier, three types of research are carried out – online and manual data collection using questionnaire surveys and in depth interviews i.e, a methodological triangulation is used for this research. The reason for this multi-method approach is that, “Triangulation can overcome the potential bias and sterility of a single-method approach.” (Hussey & Hussey, 1997, p4) Access to Participants: to gain access to the participants, the emails of the participants will be sought from different directories. An attempt will be made to go in person to various offices that outsource their businesses and to gain responses for the surveys. The survey will be sent out to a large number of businesses. Also for the in depth interviews, an attempt will be made to meet business consultants and business managers to gain their view. Research paradigm A paradigm can have various meanings. It refers to “your basic beliefs” and your approach to the world which affects the way you define your research and how you collect and analyse data (Collis & Hussey, 2003, p. 47). The research approaches used in the study comprises a mixture of both the “phenomenological paradigm” which is also referred to as a “qualitative” approach, and the “positivistic paradigm” also known as the “quantitative” approach (Collis & Hussey, 2003, p. 47). “Phenomenological” is based on the word “phenomenon” which means a fact that happened or an event that was witnessed. With the phenomenological approach the focus is on “understanding the human behaviour from the participant’s own frame of reference” (Collis & Hussey, 2003, p. 53). As this approach is related to an event within a context of time and place, the aim is to investigate an event by carrying out your own research to “construct new theory to explain the phenomenon” (Collis & Hussey, 2003, pp. 56-57) or use existing theory. The aim and focus with this approach is “on the quality and depth of data” (Collis & Hussey, 2003, pp. 56-57). With the positivistic paradigm, the emphasis is on using measurement to find out the relationships between facts and causes of the phenomenon. This is “an essential element of the research process under this paradigm” (Collis & Hussey, 2003, p. 57). This approach is useful when there is a need to conduct statistical analysis (Collis & Hussey, 2003, p. 56). A positivistic approach will be used and the researcher will be independent, will not be influenced by the subject of research, and will take “the role of an objective analyst” (Saunders & Lewis & Thornhill, 2000, p. 85). According to Denzin & Lincoln (cited in Silverman 2005), “qualitative investigators think they can get closer to the actor’s perspective through detailed interviewing and observation” (p. 10). With qualitative researchers, the emphasis is on the close relationship between the subject of research and the researcher where the value is in the social reality and the meaning of the social event or phenomenon. However, in comparison, quantitative researchers focus on the measurement and analysis of facts and causes. The qualitative approach relies on the quality and depth of data and does not focus on the “measured (if measured at all) in terms of quantity, amount, intensity, or frequency” (Denzin & Lincoln, 2000, p. 8). In addition, as Waters (2001) explains, the quantitative approach is based on “simplified representations of reality where real features are depicted by symbols” (p. 8). As the research will utilise interviews to collect data, it would be advantageous to use both the qualitative and quantitative approaches. This will be useful when conducting interviews, as the phenomenological paradigm helps the researcher to “get a feel for the key issues” and provides “confidence” in the accuracy and depth of the data collected as the main issues have been covered (Saunders & Lewis & Thornhill, 2000, p. 98). Furthermore, working within the positivistic paradigm will assist in measuring the data and the correlation between the variables, and the quantitative research outcome could be measured against existing theory. Using a mixture of approaches and techniques has advantages, as all methods have pros and cons. This means using a triangulation approach, which as Denzin & Lincoln (2000) explain “has been generally considered a process of using multiple perceptions to clarify meaning, verifying the repeatability of an observation or interpretation” (p. 443). Using both methods will help ensure that the research outcome is accurate and this “will lead to greater confidence being placed in your conclusions” (Saunders & Lewis & Thornhill, 2000, p. 99). It also reduces the “possibility of getting the answer wrong” (Saunders & Lewis & Thornhill, 2000, p. 100). The study will use exploratory and applied research approach that will use cross-sectional studies, a positivistic methodology, “designed to obtain information on variables in different contexts” (Collis & Hussey, 2003, p. 61). This study takes a sample of what the situation is, the social phenomenon. This will be done using interviews to see what happened to companies and if there is a correlation or not between the event and the changes due to outsourcing. According to Collis & Hussey (2003, p. 61) cross-sectional studies only indicate whether there is a correlation or not, and does not tell you why it is there. Validity and Reliability: The concept of validity of qualitative research has been defined as, ‘.. a contingent construct, inescapably grounded in the processes and intentions of particular research methodologies and projects’ (Winter, 2000, p.1). Maxwell (1992) argues that validity is a goal rather than a product. This goal encounters some threats which are made by evidence, not methods. In order to exclude these threats, validity, as an important component of the research, must consist of a certain strategies. These strategies require the researcher to identify the specific threat in question and to develop ways to attempt to rule out that particular threat. The validity threats and the way they can be dealt with is a key issue in a qualitative research proposal. In dealing with validity threats Maxwell (1992) argues that qualitative researchers usually consider these threats as particular events or processes, rather than as generic variables. Maxwell (1992) discusses two broad types of threats to validity. These two types, according to him, are researcher bias and reactivity. The researcher bias is how certain values of the researcher influence the conduct and conclusion of the study. While the reactivity is to understand this influence and use it productively. Various researchers have over time develop their own concepts for validity and most of them adopt that the most appropriate terms for validity include, quality, rigor and trustworthiness. Miles and Huberman’s (1984) comment on triangulation strategy is instructive, while Mathison argues the same (Miles & Huberman, 1984). Mathison (1988), states that one could be concerned about the quality of the data and the reliability of the data in case of a lack of developed productivity ability. There are various methods used in triangulation. Smith and Klein cited in Mathison (1988) have referred to this as a ‘different images of understanding’. There are four types of triangulation including: a) Data triangulation: refers to using different data sources and settings, b) Investigator triangulation: means to employ more than one investigator, c) Theory triangulation: engages a number of perspectives to interpret a set of data, and d) Methodological triangulation: involves using multiple methods. “Triangulation can overcome the potential bias and sterility of a single-method approach.” (Hussey & Hussey, 1997, p4). Hence triangulation will prove to be most effective here for the research and will also lead to provide the readers with a focused and trustworthy research as well. Triangulation in simple terms is a method of reinforcing the points that have been found in one method and ensuring all methods lead to similar answers thereby making the response insightful and reliable as well. Maxwell (1992) argues that methods and procedures do not assure validity to the research in general, but they are critical to the process of excluding validity threats which lead to increasing creditability of the conclusions. Data sources For the research, data will be collected from two types of sources, which are primary and secondary (Sekaran, 2000, p. 221). This is referred to as “data triangulation, where data is collected at different times or from different sources in the study of a phenomenon” (Collis & Hussey, 2003, p. 78). Primary data is information gathered from direct observation, conducting interviews, surveys, and questionnaires, from “individuals, focus groups, and a panel of respondents specifically set up by the researcher whose opinions may be sought on specific issues from time to time” (Sekaran, 2000, p. 221). Secondary data on the other hand refers to information published by others and which is already available. (Collis & Hussey, 2003, pp. 53-54). It is also data collected by other people rather than the researcher who is carrying out the study (Sekaran, 2000, p. 255). Secondary data is information available from books, journals and online resources. Data collection methods Collection methods will involve conducting structured face-to-face and telephone interviews for approximately 10 companies. A list of set questions will be asked in all of the interviews and these will not vary from one person to another. This primary data will then be analysed. The advantage of using a structured interview is that it will help to “clarify doubts, and ensure that the responses are properly understood, by repeating or rephrasing the questions” (Sekaran, 2000, p. 230). It is also an opportunity to request “more in-depth information about specific variables of interest” (Sekaran, 2000, p. 233). However, there are disadvantages to face-to-face interviews as some “respondents might feel uneasy about the anonymity of their responses when they interact face to face with the interviewer” (Sekaran, 2000, p. 230). There are also “geographical limitations” (Sekaran, 2000, p. 230) which is why telephone interviews will be used to gather data from a wider range of participants. At least 10 – 15 interviews will be taken with several participants and experts in the market. For the telephone interview, selected participants will be known to the researcher either directly or indirectly. As for the face-to-face interviews, the selection will include a combination of participants known by the researcher or randomly selected from contacting companies to gain information. This is why the interview needs to be concise and structured to get people to participate. The researcher will use “personal judgement” to decide which participants are selected for phone interviews (Sekaran, 2000, p. 237). In addition, the interview questions will be “open-ended” to allow participants to respond as they wish. They may feel uneasy if the questions are restrictive to yes or no responses, and this is especially applicable in face-to-face interviews. (Sekaran, 2000, p. 237). Secondary data will be gathered from books, journals, and online news, general, and government websites, some of which is referred to in the literature review. However, data collected from the internet will be considered with caution. This data needs to be evaluated based on its author which helps to identify whether the site is trusted or not, as the internet is “an open door to nonsense to appear, and one way of checking on this is knowing about the author” (Berry, 2004, p. 32). Data analysis and conclusion As the study used a mixture of the phenomenological and positivistic approaches to research, both qualitative and quantitative data analysis methods will be utilised. The data collected will be studied using “inductive” and “deductive” approaches to develop and theoretical framework. First of all, with the inductive approach information is put together from the data that has been collected. Then using the deductive approach allows the researcher to “turn away from the data and think rationally about the missing information and form conclusions based on logic” (Collis & Hussey, 2003, p. 73). The research questions will be answered on the basis of “an informed academic judgement, adopting the conceptual world-view of a perspective or theory and evaluating competing perspectives and theories through the ‘lens’ of this world-view” (Redman, 2006, p. 29). The outcome of the study is to formulate a grounded theory, based on the phenomenon being studied, which throws light on the issue of consumer trust in banking. Indeed, Collins & Hussey (2003) confirm that a study “illuminates the area under investigation” (p. 73). They also define grounded theory as “one of the interpretive methods that share the common philosophy of phenomenology” (Collis & Hussey, 2003, p. 73). The main objective of the study is to deduce recommendations and policies which can be useful for managers of different companies in the various fields. Proposed Timeline: Particulars Time Background Reading 2 weeks Literature Review 3 weeks Research Process and Research Methodology 4 weeks Analysis of Findings 1 week Conclusion 1 week Editing and Proof Reading 1 week Bibliography Ashley, E. (2008). Outsourcing For Dummies. For Dummies Berry, R. (2004) The Research Project. 5th edn. New York: Routledge Black, T. R (1999) Doing Quantitative Research in the Social Sciences: An Integrated Approach to Research Design, Measurement and Statistics. London: Sage Publications Ltd. Brown, D., Wilson, S. (2005). The Black Book of Outsourcing: How to Manage the Changes, Challenges, and Opportunities. 1 edition. Wiley Collis, J. & Hussey, R. (2003) Business Research: A practical guide for undergraduate and postgraduate students. 2nd edn. London: Macmillan Press Ltd. Denzin, N. K. & Lincoln, Y. S. (eds.) (2000) Handbook of Qualitative Research. 2nd edn. London: Sage Publications, Inc. Dominguez, L. (2005).The Managers Step-by-Step Guide to Outsourcing. 1 edition, McGraw-Hill John K. Halvey & Barbara Murphy Melby. (2007). Business Process Outsourcing: Process, Strategies, and Contracts. 2 edition. Wiley Kennedy, R.E. & Sharma, A. (2009). The Services Shift: Seizing the Ultimate Offshore Opportunity. 1 edition. FT Press Mark, M & Richter,F – J, 2005, ‘Global Outsourcing Report’, Accessed on 10th January 2010, Retrieved from http://www.globalequations.com/Global%20Outsourcing%20Report.pdf Maurice F. Greaver II (1999). Strategic Outsourcing: A Structured Approach to Outsourcing Decisions and Initiatives. illustrated edition. AMACOM Power, M.J., Desouza, K., Bonifazi, C. (2006). The The Outsourcing Handbook: How to Implement a Successful Outsourcing Process. illustrated edition. Kogan Page Redman, P. (2006) Good Essay Writing. 3rd edn. London: Sage Publications. Saunders, M. & Lewis, P. & Thornhill, A. (2000) Research Methods for Business Students. 2nd edn. Harlow: Pearson Education Limited. Sekaran, U. (2000) Research Methods for Business, A Skill-Building Approach. 3rd edn. New York: John Wiley & Sons Inc. Silverman, D. (2005) Doing Qualitative Research. 2nd edn. London: Sage Publications. Waters, D. (2001) 3rd edn. Quantitative Methods for Business. Harlow: Pearson Education Limited. Read More