Outsourcing and its impact on operational objectives and performance: a study of Iranian telecommunication industries

Abstract

Through outsourcing, a company can expand and develop its sources and capacities by accessing to higher quality services and better functionality. This paper deals with the perception of the managers of the telecommunication industry sector on the effects of outsourcing on operational strategy and especially on the issues associated with cost reduction, developed quality, flexibility and better service. Because of the importance of the strategic feature of outsourcing, we examined its effects on the organizational function of the telecommunication industries. This study shows that managers believe that outsourcing has a great impact not only on the cost reduction but also on other goals of operational strategies, which makes outsourcing become inherently more strategic. In addition, it seems that outsourcing influences function noticeably. In the present research, the relationships between propensity to outsourcing and operational objectives and organizational performance in telecommunication industries are assessed. The aim of this research is to examine the propensity to outsourcing and its impacts on operational objectives including cost reduction, improved quality, flexibility and better service and organizational performance, which includes financial performance and non-financial performance. In the research, data are collected through field research and questionnaires. The questionnaires are distributed among the board of directors, quality managers, operational administrators, and lower managers and then the feedbacks are analyzed using SPSS and Minitab software based on deductive and descriptive statistics.

Keywords

• Outsourcing
• Productivity
• Supply chain management
• Efficiency