Outsourcing a success or failure in the telecom industry

Abstract

Outsourcing has been a trend since the past few decades. There are different forms in which outsourcing exists but the most common description is the one that describes outsourcing to be an arrangement where a third party provides for the function of the organization at a lower cost. There are many advantages and pitfalls of outsourcing. The research conducted here is focusing on the impact of three dimension of the independent variable i.e alignment with the business strategy, communication framework and cultural compatibility on successful outsourcing that is measured in terms of strategic and economic benefits along with overall satisfaction with the decision. Moreover, a moderating variable was also included in the study i.e Service quality and experience of the outsourcing agency. The study is quantitative in nature. Hypothesis were developed and tested in order to prove or reject the study. 31 questions were created based on each of the dimensions identified. SPSS analysis was conducted on a sample size of 75. Different tests such as reliability tests, regression analysis, chi-square and correlation tests were conducted. The results portrayed a positive relationship between the three variables. Therefore, it is concluded that the study achieved its objectives and proved the relationship between the three variables. Moreover, recommendations were provided very specifically in order to provide guidance and preventive measure. It can be said the research framework is not a bust and has its own significance.