How outsourcing could be accomplished in ways that improve employee Research Paper

How outsourcing could be accomplished in ways that improve employee acceptance and reactions to change - Research write up ExampleThe paper tells that in todays global world, outsourcing jobs is increasingly a fact of life. Outsourcing may be necessary to retain a combative advantage, as former(a) firms are outsourcing to take advantage of lower be and higher quality. That said, outsourcing may not always be acceptable to the affected employees. Employees may be cynical about the changes brought about by the outsourcing, which leads to decreased employee morale. There are ways that firms should approach outsourcing decisions, namely communicating directly with employees in an effectual manner. There are also ways not to approach outsourcing, which involves blindsiding employees and lying to them, as OzBank, the case study detailed below, approached their outsourcing. Moreover, appointing an effective, transformational leader to guide the process is essential. Guang Qu et al. res earched what characteristics regarding IT firms make the firms more believably to outsourcing. They found that industry munificence and dynamism was positively correlated with the amount of outsourcing d matchless by the individual firms in the industry. On the other hand, industry concentration is negatively correlated with outsourcing, due to the power and resources such firms have. They also found that high capital intensive industries are less likely to downsize than low capital intensive industries. This is because high capital intensive industries do not put a premium on risky and novel practices, which outsourcing is considered to be. cyclooxygenase et al. (2011) also studied outsourcing with regards to IT firms. They identified two different categories of IT outsourcing IT outsourcing with regards to core value-chain operations, and IT outsourcing with regards to support activities. The main outsourcing in the core value chain operations is distribution, whereas, with sup port activities, gentlemans gentleman resource management and facilities management are the two main support activities which involve outsourcing. They state that firms outsource because they want to retain a competitive advantage, including costs savings and quality improvement. Outsourcing may also increase flexibility of the firm, as well as restructure the firms costs. The focus of their study is on IT firms which are in the public sector, as opposed to the private sector, and the research method was case studies with semi-structured interviews. They found that, with the firms in the public sector, that the cost savings was the most important agent in the decision to outsource, and that the firms which did outsource found that there was also a quality advantage to doing so. This is because there is generally a larger pool of dexterous workers to draw upon when a firm outsources. That said, there might be a disadvantage to firms which outsource due to industry perception of th ese firms. Oh et al. (2006) studied this factor. They found that, with regards to investors, one half of the investors in IT firms responded negatively to announcements that the IT firm would be outsourcing, and one half of the firms reacted positively. The positive reactions came when the level of transactional risk for the firm was low, and the opposite when the level of transactional risk was high. The chance upon drivers for negative reactions were the relative size of the contract, the inability to monitor the vendors performance, the asset specificity of the IT outsourced resources, and the relative size of the vendor (Oh et al., 2006, p. 299). Lee et al. (2000) further studied knowledge systems (IS) outsourcing. They identified five research issues with regards to this. The first was why firms used outsourcing for acquisition. In particular, a firm must decide whether to make or buy true technology. The next issue is the motivation for outsourcing. Lee et al. (2000) notes that there are inherent advantages and disadvantages to outsourcing. The advantages include cost reduction and quality enhancement. The disadvantages include loss of control, loss of adapted personnel and loss of flexibility. The third