The Business Outsourcing in Telecommunication Industry Case of Pakistan

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TheBusinessOutsourcinginTelecommunicationIndustry:CaseofPakistan

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RizwanRaheemAhmed

IndusUniversity,Karachi,Pakistan

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LithuanianSportsUniversity


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NawazAhmad

SZABIST,Karachi,Pakistan


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R.R. Ahmed, J. Vveinhardt, N. Ahmad,

M. Mirza

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Implementation of IT and Innovations: Implications for Business

TRANSFORMATIONS IN BUSINESS & ECONOMICS, Vol. 13, No 2B (32B), 2014

Ahmed, R.R., Vveinhardt, J., Ahmad, N., Mirza, M. (2014), “The

Business Outsourcing in Telecommunication Industry: Case of

Pakistan”, Transformations in Business & Economics, Vol. 13, No 2B

(32B), pp.760-779.

THE BUSINESS OUTSOURCING IN

TELECOMMUNICATION INDUSTRY: CASE OF PAKISTAN 1Rizwan Raheem Ahmed Department of Business

Administration & Commerce

Indus University

Block-17, Gulshan, Karachi

Pakistan

Tel.: +92 300 8293560 E-mail: [email protected]

2Jolita Vveinhardt Institute of Sport Science and

Innovations

Lithuanian Sports University

Sporto str. 6, Kaunas

Lithuania

Tel.: +370 698 06668

E-mail: [email protected]

3Nawaz Ahmad Department of Business


Indus University


Pakistan

Tel.: +92 300 9292422

E-mail: [email protected] 4Mirza Mujeeb Department of Business


Indus University


Pakistan

Tel.: +92 322 2001723 E-mail: [email protected]

1Rizwan Raheem Ahmed, PhD, Professor, Institute of Business

Administration & Commerce, Indus University (Pakistan), carries more

than 19 years of Professional Experience at Senior Management Positions

in Sales and Marketing with prestigious National & Multinational

Organizations in Pharmaceutical Industry. He has been working at Indus

University since September 2013 as Professor for Business Administration

& Commerce department. He has been visiting Faculty for SZABIST for

several years. He has published more than 50 publications (Peer reviewed

research articles) in reputable national and international journals including

ISI Thomson Reuters indexed and impact factor Journals as well. He is

also an author of two books and several news articles.

2Jolita Vveinhardt, PhD, Chief Researcher, Institute of Sport Science and

Innovations of Lithuanian Sports University (Lithuania), Associated

Professor at the Department of Management of the Faculty of Economics

and Management at Vytautas Magnus University (Lithuania). She is the

head of the research group “The state of the climate in leisure industry

organisations and human resource management research”. She has been

exploring the phenomena of mobbing and nepotism, climate of the

organisation and other aspects related to human resource management for

recent several years. As author and co-author she has published more than

100 scientific publications in Lithuanian and foreign journals on the topics

of economics and management of organisations. Vveinhardt is the author

and co-author of five books. The main areas of her research interest are

as follows: mobbing in employee relations, climate of the organisation,

nepotism as a management anomaly, favouritism, cronyism,

protectionism, values congruence, human resource management and

corporate social responsibility.

---------TRANSFORMATIONS IN --------

BUSINESS & ECONOMICS

© Vilnius University, 2002-2014

© Brno University of Technology, 2002-2014 © University of Latvia, 2002-2014

mailto:[email protected]


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3Nawaz Ahmad, M. Phil., Assistant Professor and Head of Research

& Publications, Department of Business Administration & Commerce,

Indus University, Pakistan, has the experience of teaching profession

for 15 years. He has taught various subjects such as Research Methods,

Islamic Finance, Corporate Finance, Financial Management, Financial

& Managerial Accounting, Econometrics, Time Series, Economics,

etc. Moreover, he is the Editor of IJMS (Indus Journal of Management

Sciences) as well. Thus, being associated with research, he has

published 30 research articles in national and international journals and

17 conference proceedings in the field of Management Sciences and

Economics.

4Mr. Mujeeb Mirza, MS, is a Professional Telecommunication

Engineer working for Multinational Telecommunication organization,

the Warid Telecomm Pakistan for the last 15 years. He has overall 20

years practical experience in Telecommunication industry in Pakistan

and abroad. He was a part of the team involved in the implementation

of 3G & 4G technologies in Warid Telecom. He has recently

completed his MS, MBA at Indus University. He is the author and a

co-author of several articles in national and international journals. His

areas of expertise are Telecommunication, Outsourcing, Business

Modelling and Re-engineering.

Received: September, 2014

1st Revision: September, 2014

2nd Revision: October, 2014

Accepted: October, 2014

ABSTRACT. The global trend of outsourcing in telecommunication

industry demonstrates the reduction in overall costs and a need to be

more competitive in the international market. This paper analyzes the

outsourcing phenomenon and its impact on the cost of doing business in

telecommunication business in Pakistan. In this regard different reasons

have been examined as correlation and multiple linear regression

methodology has been applied to check how the reasons correlate. In

this regard the SPSS software has been used to analyze the dataset and

to come to methodology-based conclusions. Statistical quantitative tool

like correlation and multiple linear regressions were used in this paper.

The results of the findings reveal that some of the reasons are strongly

positively correlated or negatively correlated if they include negative

characteristics as business risk and disadvantages. The Multiple linear

regressions show that the only two reasons – critical drivers and benefits

– met by outsourcing in telecommunication (BMOT) are statistically

significant. They relate to cost reduction of day-to-day operation,

optimization of capital expenditures, heading of count control,

flexibility, and access to new technology. They also acquire new

capabilities, complement existing know-how, reallocate and focus on

resources and have a positive impact on telecommunication businesses

in Pakistan.

KEYWORDS: telecommunication industry, business outsourcing,

critical drivers, correlation, multiple linear regressions.

JEL classification: C12, L96, M55.


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Introduction

Relevance of the research. Recently broad opportunities opened to companies

operating on a global scale especially/particularly in the spheres of telecommunications,

transport, information systems and connections, etc. The trends of global telecommunications

industry show an orientation towards reduction of costs as well as an increasing need for

being more competitive on an international market. Competitive advantages related to

inventions, innovation and globalization growth have resulted in possibilities for the rise of

doing business. This is of relevance both to countries that are economically well developed

and to developing countries, paying attention to the fact that the trends of outsourcing in

telecommunication businesses have not been widely analyzed.

Therefore, keeping this objective in view, the undertaken study is an imperative and

essential in order to find out the impact of outsourcing in Telecommunication businesses in

Pakistan.

According to D.C. Fernández and A.S. Valencia (2013, p.14), the subcontracting and

delocalization of productive activities that characterize the global capitalist economy are

attempts to reduce costs and exempt corporations from their responsibilities to labour by

delegating production to other companies, regions, and countries and even to the workers

themselves. According to J. De Bandt (1996), the company’s decision on outsourcing is

usually examined as a “make or buy problem”. On the one hand, market blemishes statistic

problems, complications to management, the cooperation between customers and the

company and a decrease in management over how certain solutions are offered and improved.

On the other hand, complexity in arms-length, agreements may in turn increase visibility of

the business liability (see study by I.A. Irefin, O.I. Olateju and G.O. Hammed, 2012).

The research conducted by N.N. Ghikas (2012) argues that outsourcing is a rapidly

growing phase of economy of the world with a universal expenditure of about US $ 3.7

trillion in 2001. Business Process Outsourcing (BPO) has been proposed as one of the largest

parts of expansion in the outsourcing market. Yet, many business organizations are still

reluctant to outsource business processes that are part of their core business.

The research done on outsourcing in Australia revealed that “with respect to

organisational determinants, larger organisations were more likely to use consultants; sector

differences revealed higher recruitment and selection and performance-related pay

outsourcing in the private sector, higher HRIS outsourcing in the public sector, and a focus on

employee relations in the not-for-profit sector. There are no differences in the qualifications of

HRM professionals and consultants but consultants are more likely to have broader business

experiences” (Sheehan, 2009, p.236). According to H. Görg, A. Hanley (2004) by taking the

data of electronics sector of the Republic of Ireland the empirical relationship between

outsourcing and profitability at the level of machinery and plant is examined. The authors

have deduced that the profit and outsourcing relationship consists of the properties of the plant

and particularly depends upon its size. It is worth mentioning that it has been found out that if

the plant size is larger than the average then the benefits of material input can be achieved but

not if machinery and plant are small.

The insights by researchers B. Russell, M. Thite (2008), D. Grimshaw, M. Miozzo

(2009), A. Wong et al., (2010) are of major importance in different countries and relevant to

the context of this presented research. The authors found out that outsourcing goes hand in

hand with work simplification and can be useful over and above the benefits of increased

efficiency; also the market for IT services depends on outsourcing. Thus, outsourcing

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https://www.researchgate.net/publication/249633578_Outsourcing_HRM_activities_in_Australian_organisations?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==

https://www.researchgate.net/publication/237773155_Managing_outsourcing_to_develop_business_Goal_interdependence_for_sharing_effective_business_practices_in_China?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==


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becomes one of the strategic directions of doing business based on knowledge and

technologies.

However, business outsourcing is not assessed unambiguously. “Frequently,

outsourcing strategies are viewed negatively by the service receivers because of the fear of

losing control over the process. It takes time to build trust in a partnership. Therefore, initial

trust would be a qualitative attribute that managers should look for in their selection of

vendors for outsourcing” (Abdul-Halim et al., 2014, p.11). Moreover, organizations meet new

challenges: “New tensions and conflicts are the hallmarks of a network-based approach to

HRM, and these are multiplied under certain sectoral and institutional conditions” (Grimshaw,

Miozzo, 2009, p.1546).

The research done in Pakistan revealed that “core competencies, together with

outsourcing practices, were found to vary according to the size of the manufacturing firm”

(Rana, Ghani, 2004, p.7). It has to be admitted, however, that more comprehensive research

on outsourcing, in the field of telecommunication of this country in particular, has not been

adequate which partly limits the business and cooperation development in both domestic and

international market.

Problem of the research: is the questions what is a currently prevailing outsourcing

phenomenon along with its impact on the cost of doing business in the telecommunication

industry of Pakistan and how should the business opportunities be developed in order to

improve the results of the organizations performance without the risk of unwanted and

maintaining a high level of client satisfaction.

Level of problem exploration: business outsourcing is a broadly analysed area

examined in different sectors of the economy, but there are still some sectors in which

reluctance has been observed while considering outsourcing phenomena. One of these sectors

has been identified as telecommunication industry in Pakistan.

The business outsourcing was researched in various aspects and to illustrate the variety

a brief overview of the research topics is presented further. R.S. Gaston’s (2005) article draws

on “the experiences gained by the investment banking industry in outsourcing to describe the

process of outsourcing and off shoring business information research and assesses the

advantages and drawbacks of the process with particular reference to continuing concerns

about confidentiality, quality of work, and the need to maintain good relationships between

researchers and end users” (p.263). Moreover, R. Wongsaroj et al., (2014) maintain that

information technology outsourcing (further – ITO) studies have been the focus of researchers

for decades. The authors ascertain that “in Thailand, the National Electronics and Computer

Technology Centre (NECTEC) reported that the financial and banking industry has the

highest spending on computer services primarily by outsourcing the core banking and service

management system. The authors note that nonetheless, research on ITO in Thailand’s

financial industry has been limited. This study was among the first to empirically investigate

the relationship between the levels of ITO, defined as the percentage of IT activities and

components selected to be outsourced, and ITO success, defined by the benefits received from

outsourcing in Thailand” (p.256).

A major attention is paid to the comparison of the conditions and international

business relations in different countries. Grimshaw, Miozzo’s (2006), article examines the

institutional effects on a fast-growing area of knowledge-intensive business services –

Information Technology (further – IT) outsourcing. The article presents the analysis “of

industry level data shows that the diverse institutional contexts of Germany and the UK

provided an equally favourable basis for growth in the IT outsourcing market, despite its

https://www.researchgate.net/publication/236154290_Dynamics_of_outsourcing_in_industrial_clusters_a_study_of_the_Gujrat_fan_industry_in_Pakistan?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==


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apparent deregulatory bias” (p.1229). W.R. Poster (2013) analyzes hidden sides of the credit

economy focusing on Indian call centres, where Indian employees provide customer service

for US consumers, while S. Agrawal et al. (2010) notify that this has become popular in India

after the economic liberalization process.

The research shows that the popularity of outsourcing is relevant to social and value

changes in the society (de Ruijter, 2004), equal opportunities (Windebank, 2007) and may

cause a problem of work relationships. V. Doellgast’s (2008) article compares “the process

and outcomes of collective negotiations over the outsourcing of call centre jobs in US and

German telecommunications firms. The author states that variation in access to resources

between countries helps explain differences in the unions’ ability to negotiate strong

collective agreements on outsourcing and to influence restructuring decisions” (p.265).

The other article by the mentioned authors, namely, Grimshaw, Miozzo’s (2009)

contributes “to such an approach by interrogating the human resource practices that have

evolved to manage the transfer of IT workers accompanying large-scale outsourcing

contracts” (p.1522). Moreover, Lockwood (2012) argued that “the unfortunate combination

may be resulting in unreasonable language assessment “gatekeeping” to BPO industry

employment and that the problems being experienced by the BPO industry to recruit enough

good speakers of English may reside more in their own practices than in the levels of English

of their graduate applicants” (p.108).

It is important that is has been identified that outsourcing is relevant and effective in a

different size (Klaas et al., 2005; Belso-Martínez, 2010) and is applied in different forms in

organizations. For example, A. Wong et al., (2010) research results show that “from 95

largely domestic outsourcing partnerships in China support the hypotheses that cooperative,

but not competitive or independent goals are the foundation upon which partners share their

effective practices openly and directly with each other and that this kind of discussion

promotes improved business results. Specifically, the structural equation analysis supported

the reasoning that cooperative goals foster open discussion of effective practices that, in turn,

results in business development” (p.1563). E. Memili et al., (2011) propose that “transaction

costs arising from human asset specificity, threats of opportunism, and risk aversion will

make small- and medium-sized family firms operating with technologies of low to medium

complexity less likely to outsource than comparable nonfamily firms” (p.47).

Outsourcing is analyzed in different studies both in private and public sector. Ward

(2007) maintains that “advocates of new public management (NPM) claim that private service

delivery promotes efficiency, effectiveness, and cost savings in government, although critics

of NPM cite numerous examples of failed attempts to apply NPM” (p.627). J. Moon et al.,

(2014) study conducts an empirical investigation on IT outsourcing projects for e-government.

The authors maintain that “framework is proposed and 13 IT outsourcing success factors from

the private sector are identified through a literature review. The framework demonstrates the

impact of four categories, organizational environment, contract/project characteristics, project

management and partnership management on IT outsourcing. A survey of IT managers

responsible for managing IT outsourcing projects in Korean government organizations was

conducted and 178 IT outsourcing projects for e-government initiated by 56 different

government organizations were analyzed” (p.1). J. Moon et al., (2014) identified that “they

were then compared with general beliefs on IT outsourcing in the private sector. Findings and

lessons of the empirical investigation of this study have provided useful guidelines for IT

managers in the public sector” (p.1). The views on the problem are especially relevant to the

https://www.researchgate.net/publication/247570129_Professional_Employer_Organizations_and_Their_Impact_on_Client_Satisfaction_With_Human_Resource_Outcomes_A_Field_Study_of_Human_Resource_Outsourcing_in_Small_and_Medium_Enterprises?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==

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https://www.researchgate.net/publication/258129596_Hidden_sides_of_the_credit_economy_Emotions_outsourcing_and_Indian_call_centers?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==

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https://www.researchgate.net/publication/237773155_Managing_outsourcing_to_develop_business_Goal_interdependence_for_sharing_effective_business_practices_in_China?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==

https://www.researchgate.net/publication/247767126_The_Evolution_of_Offshore_Outsourcing_in_India?el=1_x_8&enrichId=rgreq-4464649d-61d0-4d02-96f5-3752646905aa&enrichSource=Y292ZXJQYWdlOzI2OTI3NjU4MDtBUzoxNzc3NzkzODM0ODAzMjBAMTQxOTM5NzMxNjQwNg==


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countries where the state takes an active part in telecommunication business and the

effectiveness of management serves more criticism than praise.

Factors of Outsourcing: There are different factors for outsourcing of organizations.

Nine categories of factors due to which organizations delegate their performances were

analyzed. According to Hojnik (2010), these referred to improving income, decreasing

expenses, company growth, business factors, personal factors, the need of extreme

concentration on the main part of actions, the need to enhance management and decrease

threat, periodic specific achievements and too high start of financial commitment for

accomplishment of specific actions.

Every company regularly has to choose either it should bring out a company action

internally or pass this action to a vendor, which is considered as a decision of make-or-buy

choice.

When a business selects a vendor to perform a specific task, it has to be said that the

company outsources this particular action. Thus, the outsourcing becomes known as the

authority to some extent is given to the external company (Gilley, Rasheed, 2000).

According to B.B. Hojnik (2010), the reasons for outsourcing of companies, as it has

been argued by researchers, were high revenue, cost deduction, development of business and

personal reasons, while the main reason is to keep an eye on the necessity of highly focus on

the central part of activities. The major necessity is to get a better control and condense risk.

Only rarely there is a need for specific activities and huge initial investment for getting certain

activities.

According to I.A. Irefin et al., (2012), an outsourcing plan is at the centre of the

process of retaining business transformation towards the flexibility of the organization

structure. In this respect, these processes may be faced by extreme changes which relate to

procedure re-engineering.

In Peter’s opinion (2009), outsourcing is not a threat to economists of this nation but it

is an opportunity to raise American pay checks, productivity, and prosperity. It is an

opportunity that will be squandered, if the alarmists encourage people take boneheaded

solutions.

According to J. Papaioannou (2002), if the firms properly manage the outsourcing, the

efficiency of the operational functions can be increased with a tolerable risk and human

resource management. It has to be noted that two risks are considerable – one is when district

offices engage in district contracts and the other is a threat of leaving the opportunity due to

the business re-engineering. On the other hand, the outsourcing has an ability to increase the

sales revenue as well as residual income. When the costs of production (internal and external)

are considered, the capacity enhancement advantage can be evaluated properly.

Object of the research: business outsourcing in telecommunication industry.

Aim of the research: to analyze the currently prevailing outsourcing phenomenon

along with its impact on the cost of businesses in the telecommunication industry of Pakistan,

and to analyze the business possibilities in order to improve the results of the organization

performance without risk of the unwanted and meeting a high level of client satisfaction.

To achieve the aim, the following tasks of the research are set:

1. to research on outsourcing domination in Pakistan telecommunication industry.

2. to analyze the outsourcing from the point of view of critical drivers having done the

study of the outsourcing existence.

3. to identify the impact of outsourcing on the cost of business outsourcing in Pakistan.

The investigation examines the following hypotheses:

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H1 = Critical Drivers have no impact on outsourcing

H2 = Core Activities have no impact on outsourcing

H3 = Benefits met by outsourcing in telecommunication industry have no impact on

outsourcing

H4 = Benefits desired by consumers have no positive impact of outsourcing

H5 = Disadvantages more as compare to advantages to the employment level have no

impact on outsourcing

H6 = Better result of strategic planning has no impact on outsourcing

H7 = Fulfilment of social, financial and ethical responsibilities has no impact on

outsourcing

H8 = Risks reduction related to outsourcing has no impact on outsourcing

Methods of the research: considering the nature of the study one could conclude that it

is quantitative and cross-sectional, as to achieving the purpose a closed-ended questionnaire

was prepared and filled in by 261 respondents who were the employees in the

telecommunication industry at management level. Further the respondents were selected on

the basis of convenience and purposive sampling.

2. Material and method

Research Questions. To check the empirical relationship between the outsourcing, the

key leverage and the reasons have positive or negative correlation and its effect on the

company’s level by using multiple regression. Questionnaires were used as the research

instrument. They were distributed among 61 respondents, who were the staff of

telecommunication businesses. Descriptive statistics and Correlation and Multiple regression

tools of analysis were used (Hojnik, 2010).

According to H.S. Naru, T. Truitt (2013), correlation evaluates the scale of the factor

influence of the outsourcing on business. The hypothesis was examined by the vicariate linear

regression and multiple linear regression analysis to check the relationship of the criterion

with the predictor variables with outsourcing. The validity and accuracy of the research data

set were checked by the SPSS and the data primary collection method was adapted from the

previous successful research.

Measurement of reasons of outsourcing: Using the study of different literature the

groups of reasons have been divided into nine categories: Profit, Critical Drivers, Core

Activities, Benefits, Consumers’ Benefits and Disadvantages in telecommunication sector,

better results after outsourcing, Social, Financial and Ethical responsibilities and Reduction of

risk.

According to the different literature reviews, the following statements have been

considered:

The telecommunication businesses want to reduce different types of costs, such as

operating costs, costs of capital expenditure, labour costs and fixed costs (cost reasons).

The telecommunication businesses wish to generate more profit and capture new

markets (profit reasons).

The telecommunication businesses wish to acquire advanced technology, improve

new product, and develop the existing product and generate an idea (reasons of development).

The telecommunication businesses wish to resolve management problems, to better

head count control and better manage the flexibility (reasons of organization).


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The telecommunication businesses wish to watch their employees with adequate

and right knowledge, experience and skills (reasons of personnel).

The telecommunication businesses wish to handle better with operational activities

to minimize risk (reasons of risk management and control).

The telecommunication businesses wish to make the core activities more attentive

and focused (reason of focus).

The telecommunication businesses wish to avoid the high investment to implement

the specific activities initially (reason of investment).

The telecommunication businesses wish to keep an eye on the scope of rare

activities for the implementation (reason of rarely needed activities).

Survey Method. The questionnaire that has been developed to ask the questions taking

an interview from the personnel of the telecommunication was used. In this regard the primary

data is collected.

Populations and Sampling. The questionnaire has been developed and targeted on the

officials who are related with telecommunication business and have an experience to answer

the mentioned questions with options under the Likert Scaling. It has been successfully

approached by 261 telecommunications officials from different companies for taking samples

to test the results.

Data Analysis.

Package. Previous researches have tested business outsourcing by using Statistical

Package of Social Sciences. This present research has also used the same software for the

different techniques as examined by the previous researchers for making sound decision.

Technique. According to K.M. Gilley, A. Rasheed (2000), the businesses want to

watch the positive effect on the outsourcing, but there may also be some negative effect of the

outsourcing.

This research will also assess the relationship of the financial and non-financial

reasons that will measure the success of the telecommunication businesses in Pakistan. The

data on financial and non-financial effect have been collected via questionnaire.

According to H. S. Naru, T. Truitt (2013), the scale of the factor influence of the

outsourcing on the business was evaluated by the correlation. The hypothesis was examined

by the bivariate linear regression and multiple linear regression analysis to check the

relationship of the criterion with the predictor variables with outsourcing. The validity and

accuracy of the research data set were checked by the SPSS and the data primary collection

method was adapted from previous successful research.

A statistical technique that uses several explanatory variables is used to predict the

outcome of a response variable. The goal of multiple linear regression (MLR) is to model the

relationship between the explanatory and response variables. There are several types of MLR,

included in Table 1.


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Table 1. Multiple linear regression: type and characteristics

Type Characteristics

Direct (or

Standard)

All IVs are entered simultaneously

Hierarchical IVs are entered in steps, i.e., some before others

Interpret: R2 change, F change

Forward The software enters IVs one by one until there are no more significant IVs to be

entered

Backward Backward regression enables the researcher to develop a model including the

entire significant variable, by removing the insignificant ones.

Stepwise A combination of Forward and Backward MLR

Source: adapted to D. Gujarati, 2006.

Multiple linear regression models: the model for MLR, given n observations, is:

Y = B0 + B1x1 + B2x2 + ... + Bpxp + Ei

where i = 1,2,.......n

Under this research:

Y=β0+ β1X1+ β2X2+ β3X3++ β4X4+ β5X5+ β6X6+ β7X7+ β8X8+E (Residual)

Y= Outsourcing is key leverage for telecommunication business

X1= Critical Drivers

X2= Core Activities

X3= Benefits met by outsourcing in telecommunication

X4= Benefits desired by consumers

X5= Disadvantages more as compare to advantages to the employment level

X6= Getting better result by strategic planning

X7= Social, Financial and Ethical responsibilities fulfilment

X8= Risks reduction related to outsourcing

Y = β0 + β1 critical drivers + β2 core activities + β3 outsourcing benefits + β4

consumer benefits + β5 employment disadvantage + β6 strategic planning + β7

responsibilities + β8 risks + E

E = Residual (A residual is the difference between the actual value of a DV and its predicted

value)

3. Results and Discussion

The results of regression analysis are presented below. The summary of the model

represents R and R square with respect to dependent and independent variables. Table 2

defines how much independent variables explain dependent variable.


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Table 2. Model summary: Dependent & Independent Variables

Model R R Square Adjusted R Std. Error of the

Estimate

1 0.688a 0.474 0.393 0.809

Source: created by authors.

The analysis of variance (ANOVAs) represents the model taking the selected variable

(Table 3).

Table 3. ANOVAs (Dependent Variables & Predictors)

Model Sum of

Squares Df

Mean

Square F Sig.

Regression 30.594 8 3.824 5.850 0.000b

Residual 33.996 52 0.654

Total 64.590 60 a. Dependent Variable: Outsourcing is Leverage. b. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, SFER,

Disadvantages are more than Advantages at Employment Level, Critical Drivers, core activities, Unfavourable Activities, Desires.


In Table 3, the probability value of F-statistics (F = 5.850 P = 0.000) is less than 0.005

then the F value is statistically significant and the predictors are jointly significant for they

explain Y significantly.

The coefficients represent that the model applying selected variables is either

statistically significant or not in the multiple linear regression (Table 4).

Table 4. Coefficients: Significance of Selected Variables

Model

Unstandardized Coefficients Standardized

Coefficients

T Sig

B Std. Error

(Constant) 5.074 2.296

Critical Drivers 1.054 0.184 0.649 5.729 0.000

Core activities -0.132 0.227 -0.064 -0.583 0.563

BMOT -0.934 0.349 -0.279 -2.673 0.010

SFER -0.258 0.304 -0.090 -0.847 0.401

Desires -0.163 0.275 -0.068 -0.593 0.556

1 Unfavourable Activities 0.007 0.049 0.015 0.134 0.894

Disadvantages

Outnumber Advantages

at Employment Level

0.054 0.101 0.063 0.534 0.596

Gain Better Results

Using Strategic

Framework for Planning

and Managing IT

Outsourcing

-0.143 0.103 -0.151 -1.394 0.169

a. Dependent Variable: Outsourcing is Leverage.


The coefficients in Table 4, showing that only one independent variable Critical

Drivers and BMOT have a significant impact on the outsourcing since their prob value < 0.05.


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Therefore, the null hypothesis that there is no impact of critical drivers and BMOT was

rejected as the above given tables show that if critical drivers increase by 1 unit, the critical

driver increases by 1.054 and has a positive impact, BMOT has a negative impact, when it

increases by 1 unit, the BMOT decreases by 0.934. The prob values of other variables are >

0.05 and not significant, therefore the null hypothesis was not rejected. Therefore, it could be

concluded that the 7th model is significant which shows that only BMOT & Critical Drivers

have an impact on outsourcing.

Table 5 summarizes the results of correlation analysis between the reasons for

outsourcing and selected financial and non-financial indicators of company performance.

Table 5. Correlation Analysis: Outsourcing & Selected Indicators

Indicators 1 2 3 4 5 6 7 8 9

1 Outsourcing is

Leverage

------

2 Critical Drivers 0.571** -----

3 Core activities 0.016 0.180 -----

4 BMOT -0.269* 0.075** 0.039 ------

5 Desires -0.234** -0.100 -0.012 0.203 -----

6 SFER -0.100 0.037 -0.178 0.137 0.210 ------

7 Unfavourable

Activities

-0.096* -0.310* 0.013 -0.052 -0.153 -0.115 -----

8 Disadvantages

Outnumber

Advantages at

Employment Level

0.000 -0.248** -0.267 -0.177* -0.352 -0.015 0.209 ----

9 Gain Better Results

Using Strategic

Framework for

Planning and

Managing IT

Outsourcing

-0.037** 0.189 0.177 -0.009 0.010 -0.067 -0.279* -0.015 ------

** Correlation is significant at the 0.01 level (2-tailed).

* Correlation is significant at the 0.05 level (2-tailed).


In Table 5, in order to determine the association between outsourcing, critical drivers,

core activities, BMOT, desires, SFER, unfavourable activities, disadvantages which

outnumber advantages at employment level and gain better results using strategic framework

for planning and managing IT outsourcing, the Pearson correlation was applied. The above

given tables show that the critical driver and BMOT prob values are <0.05. Therefore, the null

hypothesis that there is no correlation was rejected and it could be concluded that the

significant correlation is between the outsourcing and critical drivers along with outsourcing

and BMOT. There is no significant correlation of outsourcing with the variables where the

prob value > 0.05. Therefore, the null hypothesis that there is no correlation cannot be

rejected. Table 6 represents the backward multiple linear regressions.


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Table 6. Model summary: Backward Multiple Linear Regression

Model R R Square Adjusted R Square Std. Error of the Estimate

1 0.688a 0.474 0.393 0.809

2 0.688b 0.473 0.404 0.801

3 0.686c 0.470 0.412 0.796

4 0.682d 0.465 0.416 0.793

5 0.678e 0.460 0.421 0.789

6 0.669f 0.448 0.419 0.791

7 0.651g 0.424 0.404 0.801 a. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, SFER, Disadvantages Outnumber Advantages at Employment Level, Critical Drivers, core activities, Unfavourable Activities, Desires; b.

Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, SFER,

Disadvantages Outnumber Advantages at Employment Level, Critical Drivers, core activities, Desires; c. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, SFER, Critical Drivers, core activities, Desires; d.

Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, SFER, Critical

Drivers, Desires; e. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, Critical Drivers, Desires; f. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT

Outsourcing, BMOT, Critical Drivers; g. Predictors: (Constant), BMOT, Critical Drivers.


In the backward multiple linear regression, the analysis of variance (ANOVA)

represents that the model with the selected variable is best fit or not (Table 7).

Table 7. ANOVAa : Backward Multiple Linear Regression

Model Sum of Squares Df Mean Square F Sig.

1 Regression 8 3.824 5.850 0.000b

Residual 52 0.654

Total 60

2 Regression 7 4.369 6.809 0.000c

Residual 53 0.642

Total 60

3 Regression 6 5.063 7.993 0.000d

Residual 54 0.634

Total 60

4 Regression 5 6.007 9.560 0.000e

Residual 55 0.628

Total 60

5 Regression 4 7.426 11.921 0.000f

Residual 56 0.623

Total 60

6 Regression 3 9.648 15.427 0.000g

Residual 57 0.625

Total 60

7 Regression 2 13.698 21.361 0.000h

Residual 58 0.641

Total 60 a. Dependent Variable: Outsourcing is Leverage; b. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and

Managing IT Outsourcing, BMOT, SFER, Disadvantages Outnumber Advantages at Employment Level, Critical Drivers, core activities, Unfavourable Activities, Desires; c. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT

Outsourcing, BMOT, SFER, Disadvantages Outnumber Advantages at Employment Level, Critical Drivers, core activities, Desires; d.

Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, SFER, Critical Drivers, core activities, Desires; e. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT

Outsourcing, BMOT, SFER, Critical Drivers, Desires; f. Predictors: (Constant), Gain Better Results Using Strategic Framework for

Planning and Managing IT Outsourcing, BMOT, Critical Drivers, Desires; g. Predictors: (Constant), Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing, BMOT, Critical Drivers

h. Predictors: (Constant), BMOT, Critical Drivers.



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In Table 7, after applying backward multiple linear regression, each variable has been

tested fit or not the outsourcing the best. The above given table shows that each variable F-

statistics > 2 and the prob value are less than 0.05, therefore the F-stats and Prob value are

statistically significant and the predictors also separately explain Y significantly.

The Coefficients represent the model by the selected variables that are statistically

significant or not in the backward multiple linear regression (Table 8).

Table 8. Coefficientsa : a. Backward Multiple Linear Regression

Model Unstandardized Coefficients Standardized

Coefficients

t Sig.

B Std. Error Beta

1

(Constant) 5.074 2.296 2.209 0.032


Core activities -0.132 0.227 -0.064 -0.583 0.563

BMOT -0.934 0.349 -0.279 -2.673 0.010

Desires -0.163 0.275 -0.068 -0.593 0.556

SFER -0.258 0.304 -0.090 -0.847 0.401

Unfavourable Activities 0.007 0.049 0.015 0.134 0.894

Disadvantages Outnumber

Advantages at Employment

Level

0.054 0.101 0.063 0.534 0.596

Gain Better Results Using

Strategic Framework for

Planning and Managing IT

Outsourcing

-0.143 0.103 -0.151 -1.394 0.169

2

(Constant) 5.215 2.023 2.578 0.013


Core activities -0.129 0.223 -0.062 -0.575 0.567

BMOT -0.933 0.346 -0.278 -2.696 0.009

Desires -0.167 0.271 -0.070 -0.618 0.539

SFER -0.261 0.301 -0.091 -0.869 0.389

Disadvantages Outnumber

Advantages at Employment

Level

0.056 0.099 0.065 0.561 0.577




Outsourcing

-0.147 0.098 -0.155 -1.496 0.141

3

(Constant) 5.797 1.726 3.359 0.001


Core activities -0.159 0.215 -0.077 -0.741 0.462

BMOT -0.951 0.343 -0.284 -2.775 0.008

Desires -0.226 0.248 -0.095 -0.910 0.367


The coefficients in Table 8 and Table 9 show that variable “Critical drivers and

BMOT” has a significant impact on the outsourcing since their prob value is <0.05.

Therefore, the null hypothesis that there is no impact of Critical drivers and BMOT was

rejected after applying backward stepwise multiple linear regression as the first backward

step. If critical drivers increase by 1 unit, the outsourcing increases by 1.047 indicating the

positive impact, while the BMOT has a negative effect. As it increases by 1 unit, the BMOT

decreases by 0.933 and the prob value is 0.009. Similarly in all the backward steps as they

were taken by the model, it is shown that the critical drivers have a positive impact and the

BMOT has the negative impact while other variables are not statistically significant because

their prob values are > 0.005. Therefore, it has been accepted that there is no impact of these


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variables on outsourcing of telecommunication. As in the last backward step, the BMOT was

the only taken but having the same behaviour of a negative impact, as shown in

Step 7 (Table 10). Table 9. Coefficientsa. b. Backward Multiple Linear Regression

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

3 SFER -0.252 0.298 -0.088 -0.845 0.402




Outsourcing

-0.142 0.097 -0.149 -1.461 0.150

4

(Constant) 5.254 1.556 3.377 0.001


BMOT -0.963 0.341 -0.287 -2.824 0.007

Desires -0.232 0.247 -0.097 -0.939 0.352

SFER -0.210 0.292 -0.073 -0.721 0.474




Outsourcing

-0.152 0.096 -0.160 -1.583 0.119

5

(Constant) 4.753 1.386 3.429 0.001


BMOT -0.985 0.338 -0.294 -2.915 0.005

Desires -0.267 0.241 -0.112 -1.106 0.274




Outsourcing

-0.146 0.095 -0.154 -1.536 0.130

6

(Constant) 4.054 1.236 3.280 0.002


BMOT -1.065 0.331 -0.318 -3.218 0.002




Outsourcing

-.150 0.095 -0.158 -1.573 0.121

7 (Constant) 3.693 1.230 3.002 0.004



Table 10. Coefficients - Backward MLR for BMOT

Model Unstandardized

Coefficients

Standardized

Coefficients

t Sig.

B Std. Error Beta

7 BMOT -1.053 0.335 -0.314 -3.143 0.003


The priority of this research to examine the relationship between outsourcing, critical

drivers, core activities and benefits met by outsourcing in telecommunication has no impact

on Outsourcing, Desire benefits consumers receive. Disadvantages are more compared to

advantages at the employment level, better result by strategic planning, and social, financial

and ethical responsibilities, risks reduction related to outsourcing as well as their impact on

outsourcing on telecommunication business by applying multiple linear regression.


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It has been found, after applying the correlation and multiple linear regression

technique that the critical drivers and benefit met by outsourcing telecommunication in

Pakistan (BMOT) are significantly correlated while the other factors do not have a significant

relationship and they also have a significant impact as shown by the multiple linear regression

technique. Therefore, both factors are important for telecommunication outsourcing in

Pakistan. The further research may lay other factors for the outsourcing in Pakistan. The

telecommunication businesses need to carefully consider factors related to the outsourcing.

Hypotheses assessment summary. The undertaken analysis of factor hypotheses with

their coefficient significant and insignificant prob values (Table 11).

Table 11. Assessment & Summary of Hypotheses

Hypotheses P-value

H1 Critical Drivers have no impact on outsourcing. 0.000

H2 Core Activities have no impact on outsourcing. 0.563

H3 Benefits met by outsourcing in telecommunication have no impact on outsourcing. 0.010

H4 Benefits desired by consumers have no impact of outsourcing. 0.556

H5 Disadvantages outnumber advantages to the employment level has no impact on

outsourcing. 0.596

H6 Better result by strategic planning has no impact on outsourcing. 0.169

H7 Social, Financial and Ethical responsibilities fulfilment has no impact on outsourcing. 0.401

H8 Risks reduction related to outsourcing has no impact on outsourcing. 0.894

The hypotheses of H1 and H3 have been rejected as the prob values are < 0.05 and both

the factors have significant impact on the telecommunication outsourcing in Pakistan while

the hypotheses (H2, H4, H5, H6, H7 and H8) have been accepted as their p-values are >0.05 and

they have no impact on the telecommunication outsourcing.

Conclusions and Recommendations

Conclusions: The research done in different countries cause no doubt about the

impact of dynamic global markets, level of liberalism of economy and ongoing social changes

affecting society values on the processes of outsourcing. The opportunities have increased in

the global businesses such as telecommunication, transportation, information systems,

communications, etc. The competitive advantages related to inventions, innovations and

globalization growth opened new ways of outsourcing.

The research expands the horizon of science in relevance to the awareness of

outsourcing in telecommunication and reveals the importance of the factors examined via the

hypotheses for the improvement of the organization effectiveness.

This research paper on the outsourcing has considered the telecommunication business

in Pakistan. Notwithstanding, it might be useful to telecommunication business leaders from

different countries. In this respect, different reasons have been examined as correlation and

multiple linear regression methodology has been applied to check how the reasons correlate.

In this regard, the SPSS software has been used to analyze the dataset and make the results of

methodology. The correct methodological access allowed obtaining reliable results based on

calculations. The regression analysis, critical drivers and BMOT are statistically significant.

Critical drivers have a positive impact taking positive beta (β), while BMOT of negative beta

(β) have a negative impact. Therefore, these two factors are more considerable for the

outsourcing of telecommunication in Pakistan while the others are not so much important

because their prob values are greater than 0.05.


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This paper has presented the reasons that have been selected by the study of much

research and applied the methodology that was applied in the studied research. The

methodology, after it was carefully studied and applied on the dataset, it is suggested that the

telecommunication businesses in Pakistan should be outsourced but the consideration of

correct reasons is necessary. Considering the mentioned, in future the research hypotheses

could be examined in other research in the countries of different economic and social climate

with a particular focus on the impact of different levels of liberalization and society values on

outsourcing and its effectiveness.

Recommendations: The top managers of telecommunication business companies are

recommended to pay attention to the identified main factors that constitute critical drivers and

BMOT to consider them while planning the strategy of outsourcing. It is, therefore,

recommended that while outsourcing the telecommunication businesses in Pakistan it would

be better to outsource the Critical Drivers and BMOT as these are the reasons of better

leverage of the telecommunication businesses in Pakistan, whereas other reasons show as not

being supportive for the telecommunication businesses to be outsourced, namely, anticipated

benefits from outsourcing in telecommunication, core activities, desired benefits received by

consumers, as well as fulfilment of social, financial and ethical responsibilities, and, finally,

the benefit received at the consumer end.

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VERSLO RANGA TELEKOMUNIKACIJOS PRAMONĖJE: PAKISTANO ATVEJIS

Rizwan Raheem Ahmed, Jolita Vveinhardt, Nawaz Ahmad, Mujeeb Mirza

SANTRAUKA

Pasaulinės telekomunikacijų industrijos tendencijos rodo orientavimąsi į bendrųjų išlaidų mažinimą ir

didėjantį poreikį būti konkurencingesnėmis tarptautinėse rinkose. Konkurenciniai pranašumai, susiję su

išradimais, inovacijomis ir globalizacijos spartėjimu, atvėrė kelius augti verslo rangai. Tai aktualu tiek

ekonomiškai išsivysčiusioms, tiek besivystančioms šalims, juolab, kad besivystančių šalių telekomunikacijų

srityje verslo rangos tendencijos nėra itin plačiai nagrinėtos. Tyrimu siekiama išanalizuoti vyraujantį išteklių

perkėlimo reiškinį, taip pat jo poveikį verslo išlaidoms telekomunikacijų versle Pakistane. Šiame kontekste

įvertinamos verslo galimybės pagerinti organizacijų veiklos rezultatus nekuriant nepageidaujamo rizikos laipsnio

ir išlaikant aukštą klientų pasitenkinimo lygį. Siekiant tikslo, tiriamas išteklių perkėlimo dominavimas Pakistano

telekomunikacijų pramonėje, o ištyrus išteklių perkėlimo egzistavimą, jis analizuojamas įvairių kritinių veiksnių

požiūriu, taip pat tiriamas išteklių perkėlimo poveikis verslo vykdymo kaštams Pakistane.

Analizuojant rangos fenomeną ir jo poveikį Pakistano telekomunikacijos srityje veikiančio verslo

kaštams, pasitelktas uždaro tipo klausimynas, apklaustas 261 respondentas iš telekomunikacijų srities

vadovaujančiojo personalo. Taikyta daugybinės tiesinės regresijos metodika. Išanalizavus mokslinę literatūrą,

atrinktas platus verslo rangos priežasčių spektras. Atliktas aprašomosios ir inferencinės statistikos testas, taikytas

modelis, kuris buvo siūlomas ir anksčiau atliktuose panašaus pobūdžio tyrimuose. Analizuotos 42 skirtingos

priežastys, atskleidžiančios telekomunikacijų verslo specifiką tiek naudos darbuotojams, tiek naudos klientams

atžvilgiu. Nustatyta, kad su darbuotojais susijusioje sferoje trūkumų yra daugiau nei privalumų, geresni rezultatai

gaunami taikant strateginį planavimą, socialinę, finansinę ir etinę atsakomybę bei mažinant su ranga susijusią

riziką. Analizuotos priežastys koreliuoja arba itin pozityviai arba negatyviai, tai traktuojama kaip verslo rizika ir

kiti trūkumai. Daugybinė regresija parodė, kad tik kritiniai veiksniai ir išteklių perkėlimo nauda

telekomunikacijoje yra statistiškai reikšmingi. Jie susideda iš kasdienių išlaidų mažinimo, kapitalo išlaidų

optimizavimo, vadovybės kontrolės, lankstumo, naujų technologijų prieinamumo, įgyja naujų galimybių

papildyti esamą know-how, perskirstyti ir sutelkti dėmesį į išteklius, ir daro teigiamą poveikį telekomunikacijų

verslui Pakistane. Telekomunikacijos verslo srityje naudojant verslo rangą rekomenduojama atkreipti dėmesį į

tokius faktorius, kaip socialinė, etinė, finansinė atsakomybė.

REIKŠMINIAI ŽODŽIAI: telekomunikacijų pramonė, verslo ranga, kritiniai veiksniai, koreliacija, daugybinės

linijinės regresijos.


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Appendix I

The Business Outsourcing: Case of Telecommunication in Pakistan

Questionnaire

(ANNEXURE-1)

Q1: Gender

Male Female Q2: Age (in years)

Less than 30 30-40 40-50 More than 50

Q3: Professional Experience (in years)

Less than 5-10 10-15 More than 15

Q4: Respondent

Director Manager GM Vendor

Q5: Education

Intermediate Graduate Masters Ph.d Others

Q6: Income (in Thousands)

Less than 20 21-30 31-40 40-50 Above 50

Q7:Organization

PTCLWarid Telenor Zong Ufone Mobilink

(ANNEXURE-2)

Strongly Agree = 5

Agree = 4

Do not Know = 3

Disagree = 2

Strongly Disagree = 1

Questions 5 4 3 2 1

Q8: Given the market environment, Is outsourcing viewed as key lever for the business?

…………………………………………………………………………………………………………………………

Q9: What are the critical drivers and obstacles for outsourcing?

a) Reduce Opex1 / Optimize Capex2

b) Head count control / Flexibility

c) Access of new technology

d) Acquire new capabilities complement existing know-how

e) Reallocate and focus on resources

Q10: Do companies currently outsource core activities?

a) Networking

b) IT

c) Marketing

d) HR

e) Customer Care

Q11: Were the expectations for benefits met by outsourcing in Telecommunication?

a) Competitive advantage

b) Reduced security costs of the core workforce

c) Access to required skilled core workforce

d) Reduced costs for services

e) Increases skills and technologies by investment

f) Changed the organization role and responsibilities to achieve objectives

g) Increased workforce commitment to achieve objectives

h) Removed the structural barriers to change

i) Increased labour productivity

Q12: Are desired benefits consumers end receive?

a) Optimized satisfaction level

b) Cheap and better quality / Increased demand / attracted new consumers


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Questions 5 4 3 2 1

c) Retained existing consumers / brand loyal

d) Received better quality than before outsourcing

e) Inquiry is received about the product satisfactorily / Knowledge of products

Q13: Are there more disadvantages as compared to the advantages in telecommunication Outsourcing to

the employment level?

…………………………………………………………………………………………………………………………

Q14: Do telecommunication businesses believe they could gain better results using strategic frameworks for

planning and managing IT outsourcing?

…………………………………………………………………………………………………………………………

Q15: Organizations are meeting their social, financial and ethical responsibilities having implemented the

outsource strategies in terms of employee?

a) Balancing the interests of various stakeholders [e]

b) Increased the Leadership effectiveness [e]

c) Increased the level of process integrity [e]

d) Reduce waste and increase profits [f]

e) Maintaining clear and updated documentation about all purchases and sales [f]

f) Properly deal with money and company resources [f]

g) Do the employees know their rating of performance?[s]

h) Do the employees know their appraisals?[s]

i) Do the employees are aware of their seniority on the basis of experience?[s]

j) Do the employees receive all benefits properly?[s]

Q16: Is outsourcing for the sole purpose of reducing costs effective and enhances overall

profitability of the organization?

…………………………………………………………………………………………………………………………

Q17: Which of the followings are some of the unfavourable outcomes in determining the risks associated

with the Outsource Telecommunication?

a) Hidden Costs

b) Unexpected transition and management costs

c) Switching costs

d) Cost of delayed delivery / non-delivery

e) Loss of organizational competencies / critical skills

f) Poor quality and reliability * e= Ethical, f=Financial, s= Social

*1Reduce Operational Expenses, 2Optimize Capital Expenses

Documents

The Business Outsourcing in Telecommunication Industry Case of Pakistan