Factors Effecting Outsourcing Decisions in Telecom Sector of Pakistan

Abstract

Outsourcing is the practice of using outside firms both domestic and foreign to handle work normally performed by or within a company. This study has focused on the factors which have been upgraded after outsourcing decisions i.e. cost efficiency, productivity and profitability in telecom sector in Pakistan. With increasing subscribers for both mobile and fixed line sectors, the Pakistani telecommunication industry is anticipated to post healthy growth rates in the coming years. For this research :122 responses were collected due to COVID-pandemic emergency; Govt. of Pakistan has imposed strict lockdown due to which researcher was not able to reach out respondents personally. To achieve results as per the objectives of the study, the researcher separated organization performance into three categories which are cost efficiency, productivity and profitability. Regarding the research question(s) related to the effect of outsourcing on cost efficiency, higher mean scores of respondent’s views revealed that outsourcing allowed expert staff to provide excellent output under controlled cost and it helped organizations to reduce operational and recruitment cost. Telecom sector organization(s) in Pakistan outsource some of their core and non-core activities or services to external service providers. Outsourcing decisions allow organizations staff more time to concentrate on their core capabilities in order to produce better quality of products and outcompete their competitors on the market.