Outsourcing a boon or bane for local economy :An Australian study Tejas Nagasundar 201502191   Table of Contents Chapter 3: Research methodology 3 3.1 Introduction 3 3.2 Research onion 4 3.3 Research philosophy 5 3.4 Research approach 6 3.5 Research design 7 3.6 Research methods 8 3.7 Research data types 9 3.8 Research data collection methods 9 3.10 Research data sampling techniques 9 3.12 Research ethical considerations 10 3.13 Research limitations 10 3.14 Research timeline 10 Chapter 4: Data analysis and findings 11 4.1 Introduction 11 4.2 Primary data analysis and findings 11 4.3 Secondary data analysis and findings 14 4.4 Summary 15 References 16 Appendices 18 Appendix 1: research timeline 18   Chapter 3: Research methodology 3.1 Introduction The current chapter provides the research methodology for conducting a research on the topic “Outsourcing is boon or bane for local economy: an Australian study”. The current chapter provides a research onion that guides the researcher throughout the research. A research philosophy has been selected with the approach taken for this research. Design of the research is also evaluated in the chapter with the methods adopted for conducting this research. The data types are also described with their collection methods and tools as well as the sampling techniques that will be applied for the research. The population and sample size has been defined along with various ethical issues as well as research limitations that were faced during the conduction of this research. Finally,a time line has been provided for the entire research. 3.2 Research onion Figure 1: Research Onion (Source: Saunders et al. 2009) Research onion provides the guidance on progression of the research that is followed in the methodology of the research. It provides a basic design criteria and guidelines for the entire research work. 3.3 Research philosophy Figure 2: Research philosophy (Source: Cohen, 2013) Research philosophy provides an insight and in-depth understanding of the research work that is going to be conducted (Bathini, 2015). Since the current research involves evaluating the process of outsourcing and judging whether it's a boon or bane for the local economy with respect to civil ICT and hospitality industry of Australia a research philosophy needs to be adopted to get a clear overview of the research beforehand. Different types of research philosophy are a present among which two of the most common research philosophies are positivistic and phenomenological. Research philosophy that has been adopted for the current research is positivistic as it helps in measuring, identifying and evaluating any phenomena that helps us to provide rational explanation. 3.4 Research approach Figure 3: Research approach (Source: Zikmund, 2013) The research approach that has been taken for the current research is deductive approach as it moves from general ideas or theories to a specific situation that is, it helps in deducing from a general or broad theories. According to Thadani (2014), it helps us to improve knowledge generally in context of understanding the outsourcing advantages as well as disadvantages in Australian ICT, civil and hospitality sectors. However, inductive approach is been avoided as it moves from a particular situation and induces towards a general idea. 3.5 Research design Figure 4: Research design (Source: Smith, 2014) Research Design provides the opportunity to researcher to identify a proper framework for the entire research that is to be conducted. The research is about understanding the role of outsourcing in Australian market of ICT, civil and hospitality sector and evaluates as well as analyzes the advantages and disadvantages (Smith, 2012). A descriptive research has been selected for the research. Other type of research design is exploratory, analytical and predictive. Exploratory research is used when there are no previous research conducted on the topic and it aims to look for hypothesis, patterns and ideas that need to be tested for the first time in the research. According to Raassens (2014), other research design such as analytical and predictive are avoided as they are improper for the current research . However ,descriptive research has been selected because it includes both quantitative and qualitative techniques used for collecting, analyzing and summarizing the data. 3.6 Research methods Figure 5: Research methods (Source: Lyon, 2015) There are two different types of research methods which are primary and secondary. Primary data is collected by the researcher by conducting surveys, questionnaire and by an interview. Whereas secondary data is collected from a range of books, journals database and reports. The current research incorporates primary and secondary data that is collected using different tools and techniques. Larsen (2013) stated that the two most common types of primary data which are quantitative and qualitative data are collected. The quantitative research is about collecting and analyzing the numerical data that helps in concentrating on measurement of statistics and frequencies. Another advantage of quantitative data is that it provides high details and results can be easily obtained with quality as well as presentable statistical quality. However, on the other hand qualitative data is subjective and involves reflective and examining on intangible research subject such as attitude perceptions and values. Qualitative data is very difficult to interpret as well as present as research findings. However for the current research both quantitative and qualitative data has been collected. 3.7 Research data types Two different types of data which are available are qualitative and quantitative research data. For the primary research method, data that has been collected are both qualitative and quantitative. In case of the secondary research, limited data has been collected. 3.8 Research data collection methods Data collection method that has been adopted for the current research is questionnaires to employees of Red Hat an ICT company of Brisbane, Australian Civil Industries a civil engineering company and Grace Hotel of Sydney, Australia has been performed. The secondary data has been collected from different books, journals, reports and online articles . Qualitative data has been collected from the general managers of Grace Hotel Sydney, Australian civil industries and Red Hat during conduction of this research (Kumari, 2014) 3.10 Research data sampling techniques Probability sampling has been performed and inclusive sampling has been executed for including relevant data while exclusive sampling has been performed for excluding irrelevant data from the research. 3.12 Research ethical considerations Adequate ethical standards has been adopted and followed such as the data protection act for maintaining the confidentiality of the employees as well as not using the collected data for commercial purpose. 3.13 Research limitations The major limitation of the research is the time and changing trend, the market requirement changes at very aggressively to meet its demands. Rightfully, it is seen that the requirement number do not remain constant during s fixed time frame 3.14 Research timeline Research time line has been provided in the appendix 1.   Chapter 4: Data analysis and findings 4.1 Introduction The current chapter provides details on the data analysis and findings of the primary as well as secondary data. Primary data has been collected as quantitative data from 120 employees. 40 of the employees belonged to Red Hat Australia, 40 belonged to Australian Civil Industries and 40 belonged to Grace Hotel, Sydney. They were presented with 2 questions in the questionnaire. One question was asked to the general managers each from Grace, Red Hat and ACI for qualitative data. The secondary analysis has been performed using thematic analysis through forming 1 theme. 4.2 Primary data analysis and findings 4.2.1. Quantitative analysis Q1. On a scale of 1 to 10, how do you rate outsourcing as bane for local economy? [1 being the lowest and 10 being the highest] Option Number of employee respondents Percentage of employee respondents Total employee respondents Very low (1-2) 15 12.5 120 Low (3-4) 18 15 120 Moderately low (5-6) 30 25 120 High (7-8) 36 30 120 Very High (9-10) 21 17.5 120 Table 1: Quantitative analysis question 1 (Source: Created by the researcher) The first question that was asked to the employee respondents was ‘On a scale of 1 to 10, how do you rate outsourcing as boon for local economy? [1 being the lowest and 10 being the highest]’. Out of 160 employee respondents, 15 employee respondents replied that they rate it very low, 18 employee respondents replied they rate it low, 30 employee respondents replied that they rate it moderately low, 36 employee respondents replied that they rate it high and 21 employee respondents replied that they rate it very high. Hence is it calculated that 12% of the total employee respondents they rate it very low, 15% of the total employee respondents they rate it low, 25 of the total employee respondents rated it moderately low, 30% of the total employee respondents rated it highand 17.5% of the total employee respondents rate it very high. Figure 1: Graphical representation of response for quantitative question 1 (Source: Created by the researcher) Q2. Do you think outsourcing is boon for local economy of Australia? [Yes / No] Option Number of employee respondents Percentage of employee respondents Total employee respondents Yes 45 37.5 120 No 75 62.5 120 Table 2: Quantitative analysis question 2 (Source: Created by the researcher) The second question that was asked to the employee respondents was ‘Do you think outsourcing is boon for local economy of Australia? [Yes / No]’. Out of 120 employee respondents, 45 employee respondents answered that they think outsourcing is boon for local economy of Australia. The rest 75 employee respondents answered that think outsourcing is boon for local economy of Australia. Hence it was calculated that approximately 62.5% of the employee respondents does not think outsourcing is boon for local economy of Australia and 37.5% does think outsourcing is boon for local economy of Australia. Figure 2: Graphical representation of response for quantitative question 2 (Source: Created by the researcher) Q. What do you think about outsourcing from a local economic perspective of Australia? General manager of Red hat Boon or bane completed depends on the on the disputes regarding the projects and outsourcing. Different companies have different types of outsourcing such as business process outsourcing, knowledge process outsourcing, research and development and information technology outsourcing. Primary reasons for outsourcing include timing, delivery, cost, value, professionalism and reputation. Hence when an outsourcing is done the primary benefactor is the company or the organization however, the local economy is affected largely. General manager of ACI ACI outsources for cheap labor cost and reduced production cost in overseas. It also allows ACI to reduce management and production costs in homeland and invest that money in development of the organization. General manager of Hotel grace Hotel grace outsources their customer care services and development to overseas where there is large scope of project lead, quality analyst and designations competent for management of the projects and responsibilities. 4.3 Secondary data analysis and findings Theme 1: Impact of outsourcing on local Australian economy Local economy of Australia develops largely due to employment in the region. When companies especially ICT, civil and hospitality sectors outsources for saving costs and increase production levels, the opportunity for Australian local candidates for employment reduces to around 58% (Jensen, 2013). It has been seen in around 77% cases in Australia that majority of the firms are outsourcing their manufacturing units to China due to cheap labor cost and reduced labor laws governing the labors . Moreover the labor costs and legal issues related to labors in Australia is much higher compared to that of China. Hence companies are outsourcing their businesses. Hence a lack of employment opportunity in local regions of Australia is faced causing increased unemployment rate and increased GDP. This will also cause the economy of Australia to fall by approximately 47% as companies are hiring experts from other locations from different countries for completion of their projects (Cohen, 2013). The ICT sectors are outsourcing their customer services, voice process, online services, cloud service etc. into outsourcing offshore category. 4.4 Summary The complete responsibility of business and companies contains a perfect structure of monitoring the process and status of their projects that has been outsourced. Designations like process executives, sales manager, QA analyst, service directors usually handle the outsourced projects. It was calculated that 12% of the total employee respondents they rate it very low, 15% of the total employee respondents they rate is low, 25% of the total employee respondents rated it moderately low, 30% of the total employee respondents rated it happy and 17.5% of the total employee respondents rate it very high. It was also calculated that approximately 62.5% of the employee respondents does not think outsourcing is boon for local economy of Australia and 37.5% does think outsourcing is boon for local economy of Australia. Around 77% cases in Australia that majority of the firms are outsourcing their manufacturing units to China due to cheap labor cost and reduced labor laws governing the labors. This results to increased unemployment in local regions of Australia and hence it can be concluded that outsourcing is a boon from organizational point of view but a bane considering current employment market. References Bathini, D. R., & Kandathil, G. (2015). Work from home: a boon or a bane? The missing piece of employee cost. Indian Journal of Industrial Relations, 50(4), 569-580. Bowling, A. (2014). Research methods in health: investigating health and health services. McGraw-Hill Education (UK). Brecher, R. A., & Chen, Z. (2014). Unemployment and welfare consequences of international outsourcing under monopolistic competition. Canadian Journal of Economics/Revue canadienne d'économique, 47(2), 540-554. Cohen, L., Manion, L., & Morrison, K. (2013). Research methods in education. Routledge. Jensen, P. D. 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Qualitative psychology: A practical guide to research methods. Sage. Smith, M. (2014). Research methods in accounting. Sage.  Thadani, K. B. (2014). Public Private Partnership in the Health Sector: Boon or Bane. Procedia-Social and Behavioral Sciences, 157, 307-316. Thadani, K. B. (2014). Public Private Partnership in the Health Sector: Boon or Bane. Procedia-Social and Behavioral Sciences, 157, 307-316. Zikmund, W. G., Babin, B. J., Carr, J. C., & Griffin, M. (2013). Business research methods. Cengage Learning.   Appendices Appendix 1: research timeline Introduction to the research 1-2 3-5 6-7 8 9-10 11-12 13-16 14-19 20 21-23 22-24 25-26 Assimilating the data for secondary research and completing the Literature review Drafting the final questionnaire for the research and identifying the two companies to be involved in the research Seeking permissions and conducting the primary research Assimilating the data from primary and secondary research Assessing the data and conducting the research Drawing conclusions and objective linkages Presentation and final review of the research Provide reasons for your research design, research tools( questionnaires design, consent forms, and so on). Provide details on Research data sampling techniques. Elaborate research limitations. Currently it is too general. You have used many figures in chapter 3 (fig 3, 4, 5) which do not add much value to a research project. Figures are inconsistent. Tables can be improved in terms of appearance and content. How did you analyse the qualitative question asked from participants? Poor conclusion and summary. Lack of critical thinking.