Outsourcing Manpower: A study of Indian Outsourcing Industry

CHAPTER 1: INTRODUCTION3

1.1.Introduction3

1.2.Background of the study4

1.3.Aims and objectives5

1.4.Research Questions6

1.5.Rationale of the study6

1.6.Structure of study8

CHAPTER 2: LITERATURE REVIEW9

2.1.Definition of outsourcing9

2.2.Outsourcing as a key for helping business10

2.3.Scope of outsourcing11

2.4.Strategic benefits12

2.5.Focus on core competences12

2.6.Types of outsourcing13

2.6.1.Tactical outsourcing14

2.6.2.Strategic outsourcing14

2.6.3.Transformational outsourcing15

2.7.Human Resource Outsourcing Trends In India15

2.7.1.Indian IT-BPO Industry16

2.7.2.Problems With Hr Outsourcing16

CHAPTER 3: METHODOLOGY18

3.1.Introduction18

3.2.Nature of the Study19

3.3.Data collection20

3.4.Analysis of data20

3.5.Research strategy and design21

3.6.Population and sample22

3.7.Reliability and Validity23

References24

Appendices28

CHAPTER 1: INTRODUCTION

Introduction

The process of outsourcing was not regarded as a formal business strategy by 1989 (Feenstra, et.al, 1995, Pp. 65). The organizations before the period of recession were self sufficient and lesser need for the process of the outsourcing was identified. The process of outsourcing was observed when there was no competency for the required functions. The use of external suppliers for these essential but ancillary services might be termed the baseline stage in the evolution of outsourcing. The next stage in this process will be regarded as the Outsourcing support services. By the start of 1990s the main focus of the organization was to opt for the methods that will focus more on cost saving methods (Minoli, 1995, pp. 233). The adopted different strategies in order to cut the cost and therefore, the concept of outsourcing the employees or the man power emerged as it focused on the cutting the cost through cheaper labor.

Outsourcing has been one of the most followed trends in India. There are many advantages in acknowledged by different enterprises in the past by different organizations that is, from small size enterprises to medium sized and large sized organizations. India is one of the most developing nations in the world. The literacy rate and the population in India has increased in the past few years has increase up to 9.4%. Similarly, the rate of the growth of India's population is 1.41%. More than 50% of India's population lies under the age of 25 years and 65% of its population are under the age of 35 thus empowering the youth in the region (Joshi, 2012). But on the other hand, unemployment has been one of the challenges for the country. Outsourcing of the manpower has helped the country to fight with the unemployment therefore has contributed for the growth for the region. Therefore, Outsourcing the manpower or the employees has been one of the new innovation in the business in the past few years therefore need to address the challenges advantages and the barriers in the process.

Background of the study

In the past, the recession period of 2008 resulted in the joblessness of many people in the past and therefore gave birth to new methods of employment for the people (Joshi, 2012). Therefore it has provided another way for the people and different entities in the business to opt for alternative approach and therefore the concept of outsourcing emerged on the global business forum. Another challenge faced by the India due to the huge rise in the population is unemployment (Chothani, & Agarwal, 2012, ...