Outsourcing Report Bangladesh Aspect

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  • Topic: Outsourcing, Business process outsourcing, Offshoring
  • Pages : 27 (7344 words )
  • Download(s) : 341
  • Published : November 28, 2011
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Outsourcing Report Bangladesh Aspect

Executive Summary

Now-a-days companies are heavily involved in the Offshore Outsourcing process because of the heavy competition in the market. Cost saving along with the qualitative services has been the main aim for many of the companies. With the help of Offshore Development services companies can concentrate on their business goals more effectively. For many companies Offshore Outsourcing has been the most critical component of their main business process. The internal market in any of the industry is getting extremely expensive and survival has been a problem for many of the companies. For them Offshore Outsourcing has been the must process. But some problems in the process of Offshore Development also leads them to look for the option of in-house services. Many companies are there that are paying high fees to the internal services provider in stead of going for the help of the Offshore Outsourcing service providers. And countries like India and China are the most demanded and hottest destinations for IT Outsourcing services globally. These countries are the one stop solutions globally for any of the IT companies. Advantages associated with the overseas services has boosted up the moral of the companies to look for these service providers. As every coin has two sides, this process also has both the impacts with it. Still many companies are breaking boundaries for Offshore . In October 2002 the Government of Bangladesh issued its National Information and Communication Technology (ICT) Policy stating the importance of this sector and referring to the designation granted by the Prime Minister as a thrust sector. With this document the government voiced the intention to utilize the ICT sector as a tool to increase the “socioeconomic” development of the country. Looking across the border at India and its $17 billion share of the global offshore Business Process Outsourcing (BPO) market and targeted employment of 4 million in 2008, it is easy to see the attraction and follow the line of thinking. However, entering the ICT sector and ensuring success, sustainability, and widespread benefit is far more complex than a simple declaration of intention. The purpose of this study was to identify and understand the factors influencing outsourcing decision in the manufacturing industry in Bangladesh. Existing literature revealed that many manufacturing industry were faced with challenges in the competitive environment to be competitive in the market and produce products at the minimum cost as possible yet meeting customer specification without affecting the quality and delivery schedule. Thus, outsourcing could be an alternative to solve most of the problems faced by many manufacturing industry in Bangladesh. This stirred these researchers to identify and understand the possible factors influencing the manufacturing industry in outsourcing decision whether these factors could really influence the management to opt for outsourcing and help in solving the problems. The theoretical framework was developed to hypothesize four components namely reduce operating cost, improve company focus, access to world class capability and unavailability of internal resources in relation to influence outsourcing decision in the manufacturing industry. The proposed study utilized the exploratory approach, whereby the survey method was used. The data was collected through questionnaires in various manufacturing industry in Bangladesh. The findings revealed that the factors or components identified for the study had significant effect on outsourcing decision except reduce operating cost. This study provided evidence that these factors would influence outsourcing decision in the manufacturing industry in Bangladesh. The recommendations are also offered more in-depth guidelines for maximizing the benefits of outsourcing. The scope and limitations of outsourcing in Bangladesh is highlighted and emphasis is...
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