The Strategic Marketing Importance and Financial Costs Associated With Outsourcing on Indian Market: UK Case Study

By

ACKNOWLEDGEMENT

I would take this opportunity to thank my research supervisor, family and friends for their support and guidance without which this research would not have been possible.

DECLARATION

I, [type your full first names and surname here], declare that the contents of this dissertation/thesis represent my own unaided work, and that the dissertation/thesis has not previously been submitted for academic examination towards any qualification. Furthermore, it represents my own opinions and not necessarily those of the University.

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ABSTRACT

In this study, the researcher focuses to determine the importance of strategic marketing and financial costs associated with outsourcing on Indian Market for this United Kingdom has been taken as a case study. Outsourcing has changed the way global business is conducted. Before, outsourcing was just a means to reduce the financial costs of the company. India is the now one of the leading countries in Information Technology (IT), producing high tech graduates and economically they are very reasonable. Now, companies need to have more reasons than cutting costs in order to meet the additional demands of companies. Companies which outsource have various reasons why they do it. According to researches, the primary force behind and the most important reason why companies outsource is to reduce the cost of operations and India provides very low cost of operations and advanced use of technology. For this study mixed methodology had been used, both qualitative and quantitative data enable the researcher to performed the research and proved the hypothesis quantitatively with the support of qualitative data. SPSS software was use to interpret the result of survey questionnaire. Finally, the researcher concludes the research and gives recommendation on the basis of existing literature and collected information.

TABLE OF CONTENTS

ACKNOWLEDGEMENTII

DECLARATIONIII

ABSTRACTIV

CHAPTER 1: INTRODUCTION1

Background of the Research1

Problem Statement1

Rationale2

Aims and Objectives2

Research Question3

Research Hypothesis3

Importance and Scope Of The Research3

CHAPTER 2: LITERATURE REVIEW6

Outsourcing6

Advantages & disadvantages of outsourcing7

Advantages7

Disadvantages7

History of Outsourcing7

Conceptual Framework8

Organization's Marketing Aspect9

Strategic Theories10

Resource Based View11

Core Competencies12

Theoretical Approaches13

The lowest cost logic13

The core competence logic14

The control logic15

The flexibility logic15

Case Study:Outsourcing in United Kingdom15

Benefits of Outsourcing16

What to Outsource17

Drawbacks Of Outsourcing17

Why companies outsource from Indian market?18

Reasons to Outsource19

Triggers Of Outsourcing In UK21

Importance and Financial Costs Associated With Outsourcing21

Organization strategy and outsourcing decisions24

Impact of Outsourcing26

Indian Market28

Outsourcing from India29

Long-term outsourcing30

Arms-length subcontracting30

Improvement of the organizational effectiveness30

CHAPTER 3: METHODOLOGY32

Introduction32

Qualitative Research33

Quantitative Research33

Rationale for a Qualitative Study33

Research Method34

Primary Data35

Secondary Data36

Selection of Participants36

Research Approach37

Data Analysis37

Likert Scale37

Case Study38

Confidentiality38

Limitations of Research39

Ethical Concerns39

CHAPTER 4: DISCUSSION AND ANALYSIS41

Discussion41

Effect on IT Professionals46

Outsourcing Issues Telephone Systems for Call Centres46

Case Analysis UK47

Pest Analysis of Outsourcing Industry UK47

1.Political factors47

2.Economic factors47

3.Social factors48

4.Technology48

IT Outsourcing to India49

Analysis of Survey Questionnaire53

Sample Size53

Question 01: Strategic Marketing Tactics53

Question 02: Indian Market and Outsourcing53

Question 03: Outsourcing Factors54

Question 04: Reason for Outsourcing From India55

Question 05: Organization Strategy55

Question 06: IT boom in India56

Question 07: Outsourcing Variables56

Results Interpretation59

CHAPTER 5: CONCLUSION AND RECOMMENDATIONS60

Recommendation for Managers61

REFERENCES63

APPENDICES67

Appendix A67

Gantt chart67

Appendix B69

Cover Letter69

Appendix C71

Questionnaire71

CHAPTER 1: INTRODUCTION

Background of the Research

The outsourcing decision has been investigated for the last three decades under different names, scopes, and levels of ...