Outsourcing Process and Its Implications on Short Bros Engineering Company - Research Proposal Example

Research proposal on outsourcing process and its implications on Short Bros Engineering Company OR RESEARCH PROPOSAL: Research proposal on outsourcing process and its implications on Short Bros Engineering Company 2. OVERALL AIM This research is aiming at examining and evaluating the concept of outsourcing. This will be achieved by determining the vital factors that make outsourcing effective. Furthermore, it will aim at finding out about practices of outsourcing in engineering firms. The examination of outsourcing practices will be aimed evaluating if these practices have the potential of minimizing the company’ cost of operations and increasing the flexibility of Short Brothers Engineering Company in their operations and services. 3. RELEVANCE OF THE RESEARCH According to Agerfalk & Fitzgerald (2008), there are several methods that companies or business ventures can employ to reduce the cost of operations. One of these methods is the practice or the incorporation of outsourcing concepts. Tomback (2003) argues that in the engineering service industry, there have been factors that drive companies in the industry to outsource either offshore or onshore especially during periods where the business environment is very competitive. There are several dimensions in which the engineering services ranging from outsourcing employees, services, and outsourcing of materials et cetera. Mintel (2008) explains that engineering firms are usually engaged in several projects and that in UK they engage in water and waste management; power; manufacturing of high-tech metal alloy parts for the aerospace industry (Short Bros Company); construction; and management of projects such as airports, harbours, and ports among many others. EPC Global (2008) illuminates that in most cases, engineering firms rarely specialize in one industrial segment. Instead, they manage several projects from several sectors, simultaneously. Lonsdale & Cox (2000) realises that engineering firms in the US outsource from activities that are deemed noncore. Some of these activities are work based on computer aided designs, documentation, and simulations that are basic (Parry, James-Moore & Graves, 2006). Moreover, they strategically develop understanding with partners for the processes that add value by reducing the costs of operations. This is in contrast to the companies in Europe who are rarely oriented towards the concept of outsourcing. In fact, European companies are relatively slow in outsourcing compared to the US though the trend is gradually growing and more so in engineering firms since engineering needs offshore outsourcing (Maskell, et al 2007). This phenomenon has been prompted by the increasing costs of operations especially during the recent economic crisis which still has significant influence on the economy of European countries. In fact, companies have though beyond noncore outsourcing based on traditional legacy and are shifting towards the process of offshore core (Rajabzadeh, Rostamy & Hosseini, 2008). 4. SPECIFIC RESEARCH OBJECTIVES OR QUESTIONS The main objective of the study will be to determine how effective outsourcing concept can be employed by the Short Brothers Engineering Company to minimize the cost of operations; increase reliability of the company; make the accessibility of data easily available; and minimize the amount of time required for book keeping. When the company achieves the above then it will likely optimize its profits and performance besides being flexible in its operations. To achieve the above main objective, the following specific objectives will be incorporated: To determine the outsourcing practices in the engineering services To evaluate the important factors in outsourcing and their implications To study how the interdependent factors that contribute to successful relationship between the partners that are outsourcing are. To investigate the strengths and weakness of outsourcing in engineering firms. 5. PROPOSED METHODOLOGY 5.1) Research strategy The research strategy that will be incorporated will entail the use of mixed approaches of both the qualitative and quantitative methods. The qualitative methods will be in descriptive form with the aim of substantiating the process of outsourcing in the engineering services in terms of benefits and disadvantages. On the other hand, the quantitative approach will be in form of statistics on order to illustrate the implications of the process and the extent to which it can be effectively minimize the cost of operations especially for engineering companies. Moreover, the qualitative approach will give the true reflection of how the operation costs of the companies are reduced in figures for the purpose of certainty. 5.2) Ethical issues Ethical issues are important segment of research and will be incorporated in the planning of the data collection process. It involves costing individuals or participants something such as energy and time in responding to the questions. The approval from the companies and individuals who will be participants during data collection will be sought. The will be required to sign consent forms as an evidence that they were not coerced into taking part in the study. Moreover, their anonymity if need be will be highly guarded. Moreover, they will be granted privacy and confidentiality. In addition, they will be made aware that they are free to take part in the study, abandon the study at their free will at any time during the data collection process. 5.3) Data collection tools and methods The research will employ the use of questionnaires, observation, interviews, and sampling to collect data. 5.3.1 Questionnaire This method will entail the use of both open and close ended questionnaires. The open ended questionnaires will be aimed at the acquisition of detailed information concerning outsourcing as a method of cost reduction and factors entailed in the process. Moreover, it will illuminate factors such as the flexibility of outsourcing and book keeping. On the other hand, the closed ended questionnaires will be aimed at obtaining specific information that does not require detailed explanations. Those who will be interviewed will be staff of the sampled engineering firms, as well as economic analysts. The employees of both the Short Bros Company and those of the Capita PLC will also be offered with the questionnaires in order to obtain their views concerning outsourcing. 5.3.2 Interviews The interviews will be incorporated with the aim of capturing the comprehension, as well as, and analysis of outsourcing in the services related to engineering. It will be not only an open interview but also informal kind of interview. Those interviewed will remain anonymous and will comprise of the staff and management of the Short bros Engineering Company in relation to the prospects of outsourcing suppose the company decides to outsource to Capita PLC. In addition, issues such as privacy, anonymity and confidentiality will be employed throughout the entire process of the interviews. The interviews will consumer time duration of approximately 15 to 20 minutes at most. The method of recording the interviews will encompass the use of recording devices and inscription of the answers given besides the questions asked on a writing material. 5.3.3 Observation This technique will be employed by the researcher to observe the operations of engineering firms that is using the concept of outsourcing to reduce the cost of operations. This will be aimed at analyzing the relationship between the partners in the outsourcing processes and the likely challenges the engineering firms encounter while outsourcing. 5.4) Sampling A random sampling method will be incorporated. 20 samples of respondents from the above mentioned companies will be randomly selected from each of companies to be interviewed. On the observation techniques, a sample of 6 companies will be incorporated to determine the insights of outsourcing process. As for the questionnaire, a sample of 25 staff members from various companies that apply the concept of outsourcing will be used. In addition, a sample of 10 economic analysts will be selected from across the entire UK to provide insights on the significance of the outsourcing process and how effectively they can be employed. 5.5) Data analysis The main analysis method that will be incorporated will be descriptive analysis method. This will be based on the information acquired from the various data collect. Besides the descriptive method, the use of statistical approach will be incorporated through the excel worksheet to illustrate in figures how costs of operations are likely to be minimized through the process of outsourcing. 6. PROBLEMS AND LIMITATIONS OF THE RESEARCH PROPOSAL One of the problems likely to be encountered is the inability to details such as how the companies to be interviewed spend on outsourcing and the impacts of the contemporary economy of not only UK but also of the other European nations on engineering firms. The other limitation is that the research will solely fund the project within the limited budget and time schedule. This has the potential of hampering interviews that will be conducted on face to face basis. The final challenge is due to limited academic research on outsourcing especially in the engineering services in UK. 7. RESEARCH TIMETABLE 7.1 Work plan: Year 2015 Activity Month 1 2015 Month 2 2015 Month 3 2015 Month 4 2015 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 W1 W2 W3 W4 Writing the literature review Writing the objectives Drafting the literature review Review of the methodology Choosing the research strategy Agreement on formal access to data collection Data collection Analysis of the data Drafting the findings Witting the initial draft of the report Writing final report of the project and presentation Reference List Mintel International (2008).Consulting Engineers (Industrial Report) –UK. Retrieved on 6th May 2015 from: http:// www.Mintel.com Agerfalk, P & Fitzgerald, B (2008). Outsourcing to an unknown workforce: exploring open sourcing as a global sourcing strategy. MIS Quarterly, 32 (2),385-409 EPC Global (2008). EPC Global.Retrieved on 6th May 2015 from: http://www.epcglobal.com/projects/index.html Lonsdale, C & Cox, A (2000). The historical development of outsourcing: the latest fad, Industrial Management & Data Systems 100(9), 444-450 Maskell, P. et al (2007). Learning Paths to Offshore Outsourcing: From Cost Reduction to Knowledge Seeking. Industry & Innovation14, 3: 239-257. Parry, G., James-Moore, M & Graves, A (2006). Outsourcing Engineering commodity procurement. Supply Chain Management, 11(5), 436-443. Rajabzadeh, A. Rostamy,A & Hosseini, A (2008). Designing a generic model for outsourcing process in public sector: evidence of Iran. Management Decision. 46, 4: 521 -538 Tomback, M (2003). The Changing Landscape of Outsourcing. Benefits Quarterly, 19(3): 13-16. 9. APPENDIX Questionnaire 1: Does your organisition outsource or do you know any that does so? YES NO 2: If yes, is the organisation involved in outsourcing procedure either directly or indirectly? YES NO 3: In your opinion is outsourcing is an opportunity or a thread for companies? 4: If is an opportunity, what are the benefits that can be achieved either in longer term or shorter term? Explain. 5: If it is a threat, what types of threats are they in reference to domestic, business, employment, or quality? Explain. 6: In your opinion, does outsourcing often involve costs that are hidden? If yes would it be important if outsourcing function involves changing supplier(s) frequently? Explain your comprehension of outsourcing in Engineering Services. 7: Do organizations in your opinion loss their competency either longer or shorter term. Do they compromise quality in reference to outsourcing? Explain. 8: What are the strengths and weakness of outsourcing? Elaborate in regards to equal direct labour. 9: What is your most preferred mode of operation? Explain 10: What is your opinion on the administration of outsourcing in terms of complexity? Is it more complex and more administration cost involving in comparison to in-house management? 11: Do you have other comments in reference to outsourcing in engineering services? Read More