Impact Of Service Outsourced Functions On Financial Performance

Question: Discuss about the Impact Of Service Outsourced Functions On Financial Performance Of Organizations. Answer: Problem statement In recent years organizations have been looking for new ways of cost minimization and profit maximization(Baker, 2014). Organizations have adopted service outsourcing as part of itsstrategic management process(Wirtz, Jochen, and Christopher Lovelock., 2016). Service outsourcing is amanagement strategy of delegating non-core functions to a service provider (Lyson, 2013). Service outsourcing involves sharing risks with an independent service provider(Simpson, 2013). The benefits of service outsourcing can outweigh the demerits, but it may have certain draw backs(Van Horne, 2010). Organizations underestimate the extent to which service outsourcing affects its operations(Wirtz, Jochen, and Christopher Lovelock., 2016). The effect of service outsourcing reduces organization controls to its standards(Wu, Shwu-Ing, and Ting-Ru Lin, 2014). There are several types of service outsourced functions in organizations. It is difficult for managers to establish whether each of the outsourced service can influence financial performance(Simpson, 2013). Purpose and objectives of study The aim of the study is to establish the impact of service outsourced functions on financial performance of organizations. The specific objectives are: To find out the impact of outsourcing marketing services on financial performance of organizations. To establish the impact of outsourcing security services on financial performance of organizations. To identify the impact of outsourcing information technology services on financial performance of organizations. To establish the impact of outsourcing human resource services on financial performance of organizations. Research methodology A mixed methodology approach will be used which encompasses both qualitative and quantitative data. (Neuman, 2012). Literature review To understand the title of the study a review of theories and empirical facts will be done(Fink, 2006). The theoretical review of literature will cover the two main variables of the study. The empirical review will provide data related to outsourced services of human resource, information technology, security, and marketing services and performances. The information will be obtained from books, peer reviewed journals, websites, and reports(Flick, 2015). Research process and implementation The study will employ a mixed methods approach which uses both qualitative and quantitative research(Fink, 2006). The methods provide the best suitable answers to the study objectives. A panel to review secondary data will be formed to ensure valid information is obtained(Flick, 2015). A survey approach (interviews) will be adopted to obtain different opinions regarding the topic of the study. Top managers of organizations will be sampled purposively using non-probability sampling technique. Qualitative data collected will be analyzed qualitatively and report written(Neuman, 2012). References Baker, M. J. (2014). Marketing strategy and management. Atlanta: Palgrave Macmillan. Fink, A. . (2006). How to Conduct Surveys: A Step-by-step Guide. Beverly Hills. CA: Sage. Flick, U. (2015). Introducing research methodology: A bigginers guide to doing research project. New York, United States: Sage. Iyoya, M. . (2002). Explaining African economin growth performance: a case of Nigeria. Lagos: Report on Nigeria case study prepared for economic research project. Lyson, P. (2013). Purchasing techniques and tools. London: MC Graw Hill. Neuman, W. . (2012). Basic of social research: qualitative and quantative approaches. London, Unted Kingdom: Sage. Simpson, F. (2013). Performance reporting in projects. Adventure works monthly, 12-78. Van Horne, G. (2010). Financial managements: cases and applications. London: Mc Graw Hill publishers. Wirtz, Jochen, and Christopher Lovelock. (2016). Services marketing: people, technology, strategy. . Journal of historical review, 12-14. Wu, Shwu-Ing, and Ting-Ru Lin. (2014). "The influence of relational bonds and innovative marketing on consumer perception-A study of theme parks. Journal of Management and Strategy , 54.