IMPACT OF OUTSOURCING DECISIONS ON ORGANIZATIONS PERFORMANCE IN MANUFACTURING INDUSTRIES OF KARACHI, PAKISTAN

Abstract

Purpose: The extremely competitive market conditions and rapid changing demands ofcustomers has pushed the firms to assess their selves and upgrade the way they process to stay in the competition. The solely purpose of this entire study is to analyze the impact of outsourcing decisions on the performance of organization in manufacturing sector of Karachi, Pakistan. The aim is to identify any positive or negative impact of outsourcing. Methodology/Design: This study is based on explanatory research design where quantitative approach is used and 384 respondents from the manufacturing sector of Karachi, Pakistan participated in data collection. Further for data analysis regression model, correlation model has been used. Findings: The results confirmed that presented hypothesis got accepted and shows positive impact of outsourcing on the performance of organization in manufacturing sector. The manufacturing firms have outsourced different functions to stay competitive by keeping focus on core business. Limitations: The findings are applicable to manufacturing sector as data is collected from employees of manufacturing firms of Karachi, Pakistan and only limited outsourcing activities were considered while working on this research. Recommendations: Understanding the idea ofkeeping whole focus on core ability and taking the correct outsourcing decision and correct execution would enhance a company’s performance in both manufacturing and service sector and along with that credibility of3P holds huge importance. To outsource you need to find an appropriate partner.