literature review-problems,gaps,opportunities and hypothesis

OUTSOURCING BUSINESS FUNCTION IN TELECOMMUNICATION INDUSTRY

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Advantages and disadvantages of outsourcing business functions in telecommunication

Introduction

Outsourcing can be described as to a contract whereby two or more parties may a company and an external vendor enter into an agreement for a specified period of time to outsource some of their operational work to an external parties in exchange of services or professional fees. In business, it reaches a point where merging and having something concrete as a block is the only solution to some of the problems that actually do occur. Over years the telecommunication industry has really developed to an extend where it is outsourcing other business functions. It does this for the benefit of the industry and also the small business or other business functions. At some point, the business environment is not actually favorable and the only solution to such problems is to ensure that, there is outsourcing of some of the functions to another business (Borman, 2017). Therefore, to endure or survive the economic uncertainty prevalent these days, that have actually lead to an unstable business environment, the telecommunication industry has actually been looking at out of the box solution. Therefore, to win against such market odds, industry leaders are leveraging business process outsourcing or adopting telecommunications outsourcing.

The process of outsourcing in this particular case, does help both the business and also the telecommunication industry. Outsourcing solutions actually assist telecommunication companies with the establishment of a flexible strategy to acquire and retain more customers, optimization of current investments accessing resources and the management of cost pressures. With also the advancements and the development in the telecommunication industry, it is also for the benefit of the business functions to outsource to the telecommunication industry (Oshri, 2015). This will ensure that, the technological advancement also do reach the business as it will outsource some of its functions to that industry. With the requirement to perform better operationally, imperatives of technology, human performance challenges and management of growth among the major issues demanding greater focus businesses have to widen in their thoughts about the models of operations that will see it outsource with a positive objective.

By outsourcing a business to a telecommunication industry, there are certain achievements that are actually met that can’t be met with the outsourcing itself. Actually, the telecommunication industry will align the business’s culture and also meet its needs through the creation of innovative, effective and different subscriber experiences. Also, the industry has to provide customized and creative solutions based on their expertise and experience (Mann, 2015). The telecommunication industry after outsourcing, provides a thorough and complete solution based on their customized approach and comprehensive understanding as the communications industry continues to provide more of bundled packages. Irrespective of the service or the product that the industry does offer, it ensures that there is reliable subscriber experience as they execute consistently due to their depth understanding of the situations.

Project objective

May business actually do get outsource for various reasons. Different business have their own reasons why they outsource their business. The reasons actually do vary from a business to another. Therefore, before a business outsources its functions to an external party, there are thorough research that are actually carried out in order to determine the functions that should be outsourced. There are also some objectives that have to be attained when outsourcing business functions to a telecommunication industry. The following are the objectives of this project (Yang, 2015).

To achieve cost optimization

Actually, when it comes to cist, it really gives the main reason as to why the functions have to be outsourced. The business actually outsourcing some of its functions to a telecommunication industry due to cost factor. As a business, the cost efficiency is the most crucial factor in order to improve the balance sheet of that business. According to the recent studies, it has been found that, most of the business functions that do get outsourced in telecommunication industry, helps in reducing the cost incurred.

To enjoy more skilled resources

Telecommunication industry is very wide and actually, when it comes to resources, it is very rich. There are so many resources that actually will help a business function when it comes to outsourcing. Therefore, with this objective, once the business functions are outsourced, the business does not have to worry about the training and recruitment expenses (Bain, 2017). The business should only look for the quality if their previous projects and half of their work will have been done. During the actual outsourcing, the business actually gets access to more skilled labor at a very low cost. It is commonly seen that businesses opt for outsourcing as a major source to get access to the credibility and skills of a firm.

To saves time

The other objective of this project is that, the outsourcing of the business functions actually saves time and this is due to handling of high outsourcing projects. I this case, the outsourcing business has garnered the equilibrium between the cost and time. Therefore, they have gained a thorough expertise in such a way that the business work gets completed before the deadline without compromising on the quality. Therefore, with outsourcing of the business functions, is that, the outsourcing companies operate round the clock to get the work done and also any other duty that might have been delegated.

To have faster and much better services.

The other objective that is usually to have faster and much better services done for the business by the telecommunication industry. This is achieved since the telecommunication industry had advanced technology and the latest changes in information and technology can be found here in this industry. Actually, the industry is bound to provide the best services at much faster rate than the actual desired time frame. The reason behind this is hat, the telecommunication industry helps the business functions to achieve a good will in the market (Marshall, 2015). The faster the ideas of the business get converted, more it adds value to the business and also the brand identity.

To achieve increased efficiency and flexibility

Always, a business function will be to look out for desired expansion and flexibility in working hours then suggest on how to outsource the work or the functions. With telecommunication, it is always believed to have the influence when it comes to efficiency and also flexibility. This industry is very flexible and when the business functions are outsourced to the telecommunication industry, definitely, it will help the business achieve increased efficiency and flexibility too. The reason behind it is because the business will be able to enjoy the high output of the work, experienced project managers that will actually cater for personal attention to every project or any function the business has to undertake (Marshall, 2015).

To have the chance and focus on important issues or activities.

There is need for the business to have focus on even other activities that might be emerging and if it fails to outsource some of the functions, definitely, it might not be easy to mult-task and succeed in the functions. This means that, most businesses will opt for outsourcing of the business functions to focus more on their main operational activities of their business. Therefore, outsourcing eliminates the extra time that helps the business to focus more on the research part. It helps the business to focus on some specific issues as the other functions are undertaken by the outsourced industry and in this case, it is the telecommunication industry. Therefore, with these objectives it is why the project is being carried out to see the realization of the various objective achieved (Han, 2015).

Project scope

Project scope can be described as the set of processes that ensure a project’s scope is accurately defined and mapped. The techniques that are used in the project scope actually enable the project managers and the supervisors to allocate just the right amount of work necessary to successfully complete a project, concerned primarily with controlling what is and what is not part of the project’s scope. In other words, the project scope can be said to be the work that needs to be accomplished to deliver a product, service or result with the specified features and functions. In this paper, the project scope will give clear identification of the work that is required to successfully complete or deliver. It will also establish the responsibilities of each member of the team and set up procedures for how work that is competed will be verified and approved.

Therefore, when it comes to the planning, the project will have a certain plan. It will involve the introduction, objectives, literature review and the conclusion. The project will discuss more on the advantages and disadvantages of outsourcing business functions to the telecommunication industry. The project will not take any sides but will try to present the issue that are linked with outsourcing both positive and the negative ones. It will try and make it clear for those business that might be interested in outsourcing some of the business functions for their own various functions. Then the project will be able to conclude on what should be done or what it is thought to be good for the business.

Literature review

With the literature review, the paper will discuss about the advantages and the disadvantages that are obtained from outsourcing the business functions. It is very clear that, where there are advantages, there are still some disadvantages and therefore, that what the literature review for this paper will entail.

The advantages of outsourcing business functions to telecommunication industry

Swiftness and expertise

When a business outsources some of its functions to telecommunication industry, there are some benefits that it enjoys as a business. The business is sure of enjoying the swiftness and the expertise since in this industry they are actually in plenty (Chan, 2015). With telecommunication industry, there are various vendors who have specialized in different fields and they actually have the specific equipment and the technical expertise and most of the times better than the ones at the outsourcing organization. Therefore, the business will enjoy having effective task carried out by the telecommunication industry.

Concentrating on core process rather than the supporting ones

Business has many functions to handle when it comes to its mandate. This means that at some point, it has to concentrate or focus on many processes such that, they fail in delivering some main objectives. In order to have all being well and delivering as per their strategies, they have to outsource some of their function to telecommunication industry. The outsourcing the supporting process gives the business more time to strengthen their core business process and also attain their goals without straining beyond their limit.

Risk sharing

In business world, risk is something that is actually expected to take place. When a risk coms does not mean that, the business is collapsing but actually it helps the business to get to have more research and come up with other business ideas. When the risk happen to a business, a business may be brought down especially if it is experiencing the risk alone. In case where some business functions have been outsourced, it means that, in any case where there will be some risk, they will be share with the organization that it has outsourced (Borman, 2017). Therefore, in this project, when business functions are outsourced, it means that, they actually share any risks that might arise with the telecommunication industry.

Reduced operational and recruitment costs

When a business is having many functions, it means that, there has to be increase in the number of personnel in order to meet all the requirements that might come across. This in fact, means that, the business has to hire and recruit more employees to cater for the excess functions. In a situation where the business functions are therefore outsourced to the telecommunication industry, this actually means that, the business will have saved the cost that would have been incurred if it was to employee and recruit more staff (Oshri, 2015). Outsourcing in this case will elude the need to hire individuals in house, hence recruitment and operational costs can be minimized to great extent. This actually one of the main advantages that the business will reap out of outsourcing some of its functions to the telecommunication industry.

Customer satisfaction

When outsourcing some of the functions, there is usually specifications that should be met and these are actually according to the customer’s demands. Therefore, in this situation where the business functions will be outsourced, it means that, the business will give specifications to the telecommunication industry on what it should do in order to ensure that, the customers get satisfied. Actually with outsourcing, the vendor contract is bound to certain level of service and quality. Therefore, the customers will enjoy high quality services due to outsourced services (Bain, 2017).

Disadvantages of outsourcing business functions to telecommunication industry

Risk of exposing confidential data

In business, some data should be kept a secret and away from other businesses. This means that, when outsourcing, a business may expose some of the data like the HR, payroll and recruitment services and these actually should remain within the business as confidential. This issue of the business outsourcing some of its functions therefore might involve the risk of exposing confidential company information to a third party.

Synchronizing the deliverables.

In some cases, a business might chose a wrong partner for outsourcing and in other times, it might make the right move and get the right partner. In a case where the business gets a wrong partner for outsourcing, some of the common problem areas will include stretched delivery time frames, sub strained quality output and inappropriate categorization of the responsibilities (Yang, 2015). Therefore, at some point, it is easier to control some of these factors inside an organization rather than exposing them through outsourcing some of the functions to another organization and in this case is the telecommunication industry.

Lack of customer focus

At some point, you may find that, the telecommunication industry is very popular when it comes to outsourcing of the services. This means that, there might be a couple of other business that have actually outsourced some of their functions to the industry too. This means that, this business also outsourcing its functions might not be making the right move since the telecommunication industry might be very congested (Bain, 2017). Therefore an outsourced vendor may be catering to the expertise needs of multiple organizations at a time. In such situations vendors may lack complete focus on your business tasks.

Conclusion

Outsourcing as a technique of doing business is one of the best moves that businesses usually take. The problem with outsourcing is when the business makes the wrong move by choosing the wrong partner who they can outsource some of their functions. When a business makes the right move and gets the right partner, there are couple of benefits that the business will be able to enjoy and actually that is the main reason for outsourcing. Business ready to outsource should carry out some research on the partner and get to have the facts about the partner.

Reference

Bain, P. and Taylor, P., 2017. Consolidation,“Cowboys” and the developing employment relationship in British, Dutch and US call centres. Re-Organising Service Work, pp.42- 62.

Borman, M., 2017. Applying multiple perspectives to the BPO decision: a case study of call centres in Australia. In Outsourcing and Offshoring Business Services (pp. 413-454). Palgrave Macmillan, Cham.

Chou, S.W., Techatassanasoontorn, A.A. and Hung, I.H., 2015. Understanding commitment in business process outsourcing relationships. Information & Management, 52(1), pp.30-43.

Han, B., Gopalakrishnan, V., Ji, L. and Lee, S., 2015. Network function virtualization: Challenges and opportunities for innovations. IEEE Communications Magazine, 53(2), pp.90-97.

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

Marshall, D., Ambrose, E., McIvor, R. and Lamming, R., 2015. Self-interest or the greater good: How political and rational dynamics influence the outsourcing process. International Journal of Operations & Production Management, 35(4), pp.547-576.

Mann, A., Folch, D.C., Kauffman, R.J. and Anselin, L., 2015. Spatial and temporal trends in information technology outsourcing. Applied Geography, 63, pp.192-203.

Yang, Y., Yang, B., Humphreys, P., McIvor, R. and Cadden, T., 2017. An investigation into E- business service in the UK telecommunication manufacturing industry. Production Planning & Control, 28(3), pp.256-266.