Professional Documents
Culture Documents
ABSTRACT:
of security guards by financial sector. Research was conducted on different banks and
money exchanges in different cities. This research is a part of our final project of
Business and Operational research. Our respected instructor Sir Khurrum Aziz Fani has
Approach – we started with unstructured interviews and after little bit discussion we
Findings – It was very good experience. We have completed this project successfully.
Main thing that we learn from this project is experience of different financial institutions
such as banks. We have been familiar with environment as well as security and control
Outsourcing 2
system of these banks. Except the Bank of Punjab all other banks are practicing the
outsource services of security guards. They have reduced their cost and have increase
their organization values in the eyes of customer by hiring the well reputed and registered
Practical implications – we have taken data mostly from banking sector. Only one
money exchange has responded to our questionnaire because there are restrictions by
head offices not to share any information regarding their security system. Other financial
institutions are totally ignored. This research will open a new horizon for further
researches in this area. This research will be feasible in deciding to outsource are to avoid
outsourcing of security guards and also explains the less important benefit of outsourcing
in this department.
INTRODUCTION
We have to research why financial institutions hire the third party contractor for security
functions and what are the benefits that financial institutions ultimately get or perceive
organizations is to serve and maximize profitability so definitely there are some benefits
because of which they have started the outsourcing of security guards. It is very sensitive
topic. So we have struggled a lot in collecting data. People are not ready to convey any
information in this regard because of present situations of terrorism. After convincing the
managers and assuring them that it is purely for academic purposes we succeeded in
Different researches have been launched in this perspective and people have given their
views in this regard. Some have been suggested that the outsourcing is to reduce cost.
Some have been concluded that it is to avail specialized services. Some have been argued
that it is for customer satisfaction. But some have been claimed that the outcomes and
suggested benefits of outsourcing are not sure until there is not effective and intensive
control on outsourced services. If there is not proper control and check and balance on
individuals provided by the third party contractor then their will be some drawbacks and
third party company. Outsourcing involves the transfer of the management or day-to-day
organization and the supplier enter into a contractual agreement that defines the
Outsourcing 4
transferred services. Under the agreement the supplier acquires the means of production
in the form of a transfer of people, assets and other resources from the client. The client
agrees to procure the services from the supplier for the term of the contract. Business
A company hires the services of the external party due to several reasons such as
best service quality, contractor provides you better services relatively quickly than your
organization, able to learn new things, contractors have better repute, to develop better
relationship with other organizations, provides you flexibility as you focus on other
Now in these days there is wide scope of outsourcing. In the market there are several
contractors are available who are ready to provide their best services with least cost. So,
many organizations hire their services in order to enjoy different benefits. To test the
perceived benefits of outsourcing of security guards a field study was conducted in the
PROCESS OF OUTSOURCING
First step is to decide whether to outsource or not, what type of services you want to
outsource and what is the reason behind your outsourcing. After making decision you
have to get approval from board. A request for proposal is issued to some of the suppliers
Outsourcing 5
requesting a proposal and a price. A competition is held where the client marks and
scores the supplier proposals. This may involve a number of face-to-face meetings to
1-Commitment to quality
2-Price
3-References / reputation
5-Scope of resources
7-Cultural match
8-Existing relationship
9-Location
10-Other
The negotiations take the original Request for Proposal, the supplier proposals, Best and
Final Offer submissions and convert these into the contractual agreement between the
client and the supplier. This stage finalizes the documentation and the final pricing
structure. There is a contractual agreement in which it is written that how the client and
the supplier will work together. This is a legal contract. There are three significant dates
that each party signs up to the contract signature date, the effective date when the contract
terms become active and a service commencement date when the supplier will take over
the services. The transition will begin from the effective date and normally run until four
months after service commencement date. This is the process for the staff transfer and the
Outsourcing 6
the Service Level Agreement (SLA), to reduce the Total Cost of Ownership (TCO) or to
execution of the agreement and lasts for the term of the contract. Some outsourcing
contracts contain clauses giving the client the right to benchmark the price paid to the
provider at certain milestones during the life of the agreement. A third party
benchmarking firm is selected according to the terms agreed to at contract signing and
conducts a comparison of the price being paid to current market prices. If the terms of the
contract provide for it, the provider and client may adjust the pricing based on the results
of the benchmark. Near the end of the contract term a decision will be made to terminate
or renew the contract. Termination may involve taking back services (insourcing) or the
Most of the organizations outsource the services of security guards from contractor due to
certain benefits. In Pakistan almost all of the financial institutions and other organizations
are outsourcing security guards. The reason of outsourcing the security guards is that
some years before the security guards were indulged in the unionism activities and try to
make exploitations in the institutions. To avoid all these activities all the institutions
decided to outsource the services of security guards. By doing outsourcing not only this
problem was solved also they enjoyed most of the other benefits. There were so many
well reputed companies in the market available to provide their services at low cost as
Outsourcing 7
compare to the permanent employees. They hire the retired army or police officers as
security guards. The employees are well trained and know their duties. They make
rotation of the security guards to avoid frauds. Only there are some of the institutions
As for as the history of outsource practices is concerned it was started when the
nationalization of financial institutions were started. This trend was most popular and
adopted while all banks and financial institutions were privatized. At this time almost all
banks were indulged in outsourcing practices of security guards. Main reason was to
reduce costs and to avoid and prevent the mishaps and unionism so that the core
functions of financial institutions would be smooth and flexible. As the security is one of
the integral functions of financial institutions so these banks and financial institutions
have hired the permanent security guards also in order to insure the competitive and
intensive security system. Permanent employees are generally lazy and less responsible
persons because their jobs are secured and their rewards are not linked with their
performance. But there is another extreme that the permanent employees are loyal with
their organization and they have more job commitment as compared to the outsourced
employees.
There are so many companies who are providing the services of security guards such as
Task to identify and elaborate the perceived benefits of outsourcing of security guards by
financial sector is a part of our Business & Operational research course. It got 30%
wattage in evaluation. So we have completed this task and have suggested that what are
Outsourcing 8
the benefits and edges that organizations perceive that they can have by outsourcing the
THEORETICAL FRAMEWORK
The process of moving by organizations to find the expert and specialized services
Six benefits of outsourcing such as; reduce time to market, saving in cost, innovation &
design excellence, more effective problem solving, regulatory compliance expertise and
extended sourcing network, including rapid prototyping illustrate how a product design
team can leverage their own internal resources to more effectively deploy the knowledge
tools that are available in the market place. (Karen K. Greene, 2007)
The benefits of outsourcing are not independent and sure. Organizations should look
beyond the operations to the business benefits that can result from the agreement and the
risks that must be tackled to achieve those benefits. (Robert K. Dell Isola, 2008)
Outsourcer that not only preach but practice measurable environmental, Social and
economic responsibility have enjoyed fiscal returns on their investments and vice versa.
There are many high reputational, operational, strategic and contractual risks involved
while banks perform outsourcing practices. Freeing of resources, reduction in cost, better
services, assess to the specialized contractors, focus on core functions are some benefits
while customer account services are less outsourced function. (Dulacha Barako, Peter
Gatere, 2008)
States can achieve a lot of benefits by outsourcing some of their functions to the private
It is outsourcing rather than computerization which causes productivity benefits. But both
the outsourcing and computerization collectively give more and intensive productivity
U.S companies can reduce their cost by outsourcing many services from developing
countries and can increase their productivity by hiring highly skilled people to perform
such services which are performed by their own white collared and lazy employees. It
will also save their time and will provide flexibility. (Erik J. Bertin, 2004)
The companies that have announced an outsourcing deal will outperform on average 1.7
per cent higher in stock exchanges benchmarked as compared to the others in the same
market that have not announced an outsourcing deal yet. (Ketie Hine, Devid Vindel,
Strategic outsourcing is very beneficial in earning high profits. Also it plays a vital role in
technique and had considered it as a key point of success. These results are most
significant in Chinese market. Strategic outsourcing is a key factor of cost reduction and
all organizations are out sourcing IT services in order to reduce cost and internal staffing
the organization and to ensure the usage of capital for more productive purposes.
(Ewarenow, 2007)
Partner with the industry leader, financial sector reform act, continue to be paid existing
fees, reduce your operating expenses, enhance your earnings are five key reasons for
Although the benefits of outsourcing reveals the similar outcomes but it is not necessary
that the results of outsourcing will be same in different countries. Results of outsourcing
92% organizations from all over the world are outsourcing infrastructure management
system. The growth rate of IT outsourcing services will be 11.2% in banking sector while
services. Main purpose of hiring trusted third party service provider is to focus on core
competencies. Assistance with organization changes and globalization are also included
methodical and documented process is involved in bringing the two parties into a
It is very useful especially for mid sized organizations to use the total benefits (TBO)
benefits of outsourcing. It combines the economies of scale with improved and quality
Large and midsized organizations are practicing the outsource services while small
organizations are less likely to outsource the IT services. (Laura Grehan, 2007)
Cost saving is an obvious issue of outsourcing, but other important considerations include
scalability, security, the availability of expertise for user support and reliability. And,
even beyond that value-added services come into play. (Charles P. Whaley, 2005)
these positive results are significant only for those organizations those are involved in
exports. It is very useful for exporters because they know that where the the labour is
cheaper and from where they can reduce cost and achieve economies of scale. These
results are not significant for those organizations which are not involved in exports and
do not know the global situations. (Holger Gorg, Aoife Hanley, Eric Strobl, 2008)
There are many benefits of outsource operations in maintenance such as, engineers
Once outsourcing is started then there should be mutual trust and respect amongst both
parties also they should be able to work as a team then organizations will be able to
achieve economies of scale and can increase their shareholder wealth. If there is proper
understanding between third party contractor and they are loyal with each other then
Innovations and continuous growth, cost reduction, latest technology, and expert services
are some of the prime functions of outsourcing. But these goals can be achieved if
contract is aligning returns with performance and the vender is loyal with the objectives
of the firms and motivated to achieve the organization’s goals. (Vinoo Andre Mehera,
2002)
According to the results of outsourcing survey conducted by trestle group in 2004 some
Ongoing management is most important success factor of outsourcing. Specific skills are
India 70% organizations are practicing the outsource services in next 12 months there
METHODOLOGY
Study Design
To test the perceived benefits of outsourcing the security guards by financial sectors a
field study was conducted in six different cities of Pakistan. Data was collected using a
pre-printed questionnaire. The questionnaire was divided into two sections first section
was related with the general information about financial institutions whereas in the
second section various factors were written down in order to check that which factor was
more focused due to which they are doing outsourcing. Most of the responses were
Data Collection
Total 100 questionnaires were distributed. Research was conducted on banks and money
was no response from money exchanger except one of them named Nobel Money
Exchange from Gujranwala. The reason was that according to them they were not ready
to answer any question due to the company policy regarding their activities. The
The data was collected by questionnaires. We collected secondary data by using Springer
link and Google. In this perspective university labs were available to us.
In addition to the introduction of the survey we assisted our respondents with the first few
questions and then allow respondents to finish the remaining part by themselves. We
were there to guide them about any question in which they feel problem. The
questionnaire was ended with an open ended statement in which we asked them about
those activities which according to them should be outsource in the long or short run of
the future, only few of them were response to this question so it was not included while
compiling the results. The questionnaire was filled by the chief managers or operational
managers of the bank. We have used this technique because it is a written document, each
and every question which we want to ask was written. So, the respondents were
comfortable while filling the questionnaire because each and every question was clearly
written in front of them. It was up to them to answer the question or not. Likert scale was
very helpful while answering the questions that are up to what extent they agree, neutral,
or disagree to the statements. All the respondents were treated and cooperate with us in
well manner. No questionnaire was rejected by the respondent while filling. We used
SPSS 11.5 version in this research. One questionnaire was filled by one branch of the
bank. Our target was to filled 150 questionnaires from different branches of financial
institutions. So, we have visited 144 financial institutions to conduct survey. For this
Wazirabad, Kamoki, and Lahore. We have covered only 1 money exchange. Out of 55
banks in Pakistan we covered 144 branches of 39 different banks. Our main focus was on
Pretesting of the data was also conducted to test the reliability and validity. Our first
questionnaire was dividing in 3 sections. First section was based on general information
about the organization, second section was based on the perceived benefits of outsourcing
security guards and the last section was based on disadvantages of outsourcing the
security guards. After pretesting we found that all the financial institutions were
outsourcing the services of security guards. So, we eliminate the last section to reduce the
length of our questionnaire which indirectly facilitates our respondents while giving
response. The results were accurate after doing pilot testing. Factor loading and
Cronbach’s Alpha were accurate. According to most of the financial institutions security
guard should not be the employee of the bank he should be outsourced and outsourcing of
security guards should be the part of financial institutions. The reason is that all the
activities regarding security guards handled and operated by the third party contractor
there salaries, uniforms, conflicts, demands etc. All the issues regarding security guards
Data was collected in just two weeks from 7 cities. Lahore was a new place for all of us
when we visited there to collect data we faced so many hurdles. Audit was conducted in
Outsourcing 19
almost all of the banks some of them were not allowing us to even sit there. In Lahore
due to terrorism activities situation is totally different as our topic is so much sensitive
outsourcing of security guards, which is directly related to security. When we asked them
to fill the questionnaire we were answer them to so many questions. They have taken the
copies of our ID cards and permission letters and also some of them have taken our
instructors phone number and name. When we were arriving back from Lahore firing was
conducted by some of the terrorisms near Shadera. It was shocking for all of us by
looking towards them so closely. We were faced so many hurdle while collecting data
from Lahore. In the remaining cities the respondents were calm and humble too, and
environment was also not too much strict as in Lahore. Some of the banks have given
Content Analysis
CITY OF ORGANIZATION
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id GU JRANW ALA 52 35.9 35.9 35.9
si
alko
t 24 16 .6 16 .6 52.4
gha kha r 8 5.5 5.5 57.9
w a zi
ra ba d 10 6 .9 6 .9 6 4.8
gu j
ra t 16 11.0 11.0 75.9
KAMOKI 5 3.4 3.4 79.3
LAHORE 30 20.7 20.7 100.0
To
ta l 145 100.0 100.0
LAHORE
20.7%
GU JRANW ALA
35.9%
KAMOKI
3.4%
gu j
ra t
11.0%
w a zi
ra ba d
6 .9% si
alko
t
gha kha r 16 .6 %
5.5%
We collected data 35.9% from Gujranwala, 16.6% from Sialkot, 11% from Gujrat, 6.9% from Wazirabad, 5.5%
from Ghakhar, 3.4% from Kamoki and from Lahore 20.7%.
Outsourcing 21
NATURE OF ORGANIZATION
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id BANK 144 99.3 99.3 99.3
MONEY
1 .7 .7 100.0
EX C HANGER
To ta l 145 100.0 100.0
MONEY EX C HANGER
.7%
BANK
99.3%
There was only one money exchange out of 100 covered institutions which gave response to our questionnaire.
TYPE OF ORGANIZATION
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id FOREIGN 33 22.8 22.8 22.8
LOC AL 112 77.2 77.2 100.0
To
ta l 145 100.0 100.0
FOREI
G N
22.1%
LOC AL
77.9%
77.9% of financial institutions were local while 22.1% of financial institutions are foreign
Outsourcing 23
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id C OMMERC IAL
138 95.2 95.2 95.2
BANK
C ENTRAL
3 2.1 2.1 97.2
BANK
INV ESTMENT
4 2.8 2.8 100.0
BANK
To ta l 145 100.0 100.0
I
NV ESTMENT BANK
2.8%
C ENTRAL BANK
2.1%
C OMMERC I
AL BANK
95.2%
There are 95.2% commercial banks, 2.8% investment banks and 2.1% central bank.
Outsourcing 24
NUMBER OF EMPLOYEES
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id 10 OR
47 32.4 32.4 32.4
LESS
10-20 47 32.4 32.4 6 4.8
21-30 19 13.1 13.1 77.9
31-40 9 6 .2 6 .2 84.1
41-50 6 4.1 4.1 88.3
51-6 0 5 3.4 3.4 91.7
MORE
12 8.3 8.3 100.0
THEN 6 0
Tota l 145 100.0 100.0
MORE THEN 6 0
8.3%
51-6 0
3.4%
41-50
4.1%
10 OR LESS
31-40
32.4%
6 .2%
21-30
13.1%
10-20
32.4%
.
So far as the number of employees is concerned; there 32.4% institutions having employees 10 or less, 32.4%
branches having the number of employees between 10-20, 13.1% branches having employees between 21-30,
6.2% branches having the number of employees between 31-40, 4.1% branches having the number of
employees between 41-50, 3.4% branches having number of employees between 51-60 and 8.3% branches
having employees more than 60.
Outsourcing 25
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id YES 44 30.3 30.3 30.3
NO 101 6 9.7 6 9.7 100.0
To
ta l 145 100.0 100.0
YES
30.3%
NO
6 9.7%
There are 69.7% respondents who suggested that the security guard should not be the employee of the bank.
There are 30.3% respondents who are in favor that the security guard should be the employee of the bank.
Outsourcing 26
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id YES 133 91.7 91.7 91.7
NO 12 8.3 8.3 100.0
To
ta l 145 100.0 100.0
NO
8.3%
YES
91.7%
91.7% branches are outsourcing the services of security guards while 8.3% branches are not outsourcing the
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id 2000 OR
56 38.6 40.3 40.3
BEFORE
2001-2002 18 12.4 12.9 53.2
2003-2004 14 9.7 10.1 6 3.3
2005-2006 18 12.4 12.9 76 .3
2007-2008 28 19.3 20.1 96 .4
2009 5 3.4 3.6 100.0
To
ta l 139 95.9 100.0
Mi
ssi
ng Sys te
m 6 4.1
To
ta l 145 100.0
Mi
ssi
ng
4.1%
2009
3.4%
2007-2008
2000 OR BEFORE
19.3%
38.6 %
2005-2006
12.4%
2003-2004 2001-2002
9.7% 12.4%
.
The trend of outsourcing the services if security guards in banking sector had started before 2000 as 38.6% of
the branches tell that they have started outsourcing in or before 2000.
Outsourcing 28
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
30 20.7 20.7 20.7
AGREE
AGREE 64 44.1 44.1 6 4.8
NEU TRAL 25 17.2 17.2 82.1
DISAGREE 18 12.4 12.4 94.5
STRONGLY
8 5.5 5.5 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
5.5%
STRONGLY AGREE
DI
SAGREE
20.7%
12.4%
NEU TRAL
17.2%
AGREE
44.1%
There are 20.7% respondents who are strongly agreed, 44.1% were agreed, 17.2% were neutral, 12.4% were
disagreed and 5.5% of the respondents were strongly disagreed that the outsourcing of security guards causes
FLEXIBILTY
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
30 20.7 20.7 20.7
AGREE
AGREE 84 57.9 57.9 78.6
NEU TRAL 18 12.4 12.4 91.0
DISAGREE 9 6 .2 6 .2 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
2.8%
DI
SAGREE
6 .2%
NEU TRAL
12.4%
STRONGLY AGREE
20.7%
AGREE
57.9%
There are 20.7% respondents who were strongly agreed, 57.9% were agreed, 12.4% were neutral, 6.2%
disagreed and 2.8% were strongly disagreed with the concept that outsourcing the services of security guards
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
31 21.4 21.4 21.4
AGREE
AGREE 53 36 .6 36 .6 57.9
NEU TRAL 32 22.1 22.1 80.0
DISAGREE 23 15.9 15.9 95.9
STRONGLY
6 4.1 4.1 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
4.1%
STRONGLY AGREE
DI
SAGREE
21.4%
15.9%
NEU TRAL
22.1%
AGREE
36 .6 %
There are 21.4% respondents who were strongly agreed, 36.6% were agreed, 22.1% were neutral, 15.9% were
disagreed and 4.1% were strongly disagreed that the outsourcing the services of security guards enables
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
39 26 .9 26 .9 26 .9
AGREE
AGREE 65 44.8 44.8 71.7
NEU TRAL 22 15.2 15.2 86 .9
DISAGREE 15 10.3 10.3 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
2.8%
DI
SAGREE
10.3%
NEU TRAL
15.2%
STRONGLY AGREE
26 .9%
AGREE
44.8%
26.6% of respondents were strongly agreed, 44.8% were agreed, 15.2% were neutral, 10.3% were disagreed,
and 2.8% were strongly disagreed that outsourcing the services of security guards saves investment in own
equipments.
Outsourcing 32
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
47 32.4 32.4 32.4
AGREE
AGREE 68 46 .9 46 .9 79.3
NEU TRAL 17 11.7 11.7 91.0
DISAGREE 9 6 .2 6 .2 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
2.8%
DI
SAGREE
6 .2%
NEU TRAL
STRONGLY AGREE
11.7%
32.4%
AGREE
46 .9%
32.4% respondents were strongly agreed, 46.9% were agreed, 11.7% were neutral, 6.2% were disagreed, and
2.8% were strongly disagreed that the outsourcing the services of security guards saves investment in hiring
own staff.
Outsourcing 33
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
22 15.2 15.2 15.2
AGREE
AGREE 59 40.7 40.7 55.9
NEU TRAL 32 22.1 22.1 77.9
DISAGREE 25 17.2 17.2 95.2
STRONGLY
7 4.8 4.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
STRONGLY AGREE
4.8%
15.2%
DI
SAGREE
17.2%
NEU TRAL
AGREE
22.1%
40.7%
15.2% of respondents were strongly agreed, 40.7% were agreed, 22.1% were neutral, 17.2% were disagreed
and 4.8% were strongly disagreed that there is better technology used by the contractors for security purposes.
Outsourcing 34
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
45 31.0 31.0 31.0
AGREE
AGREE 51 35.2 35.2 6 6 .2
NEU TRAL 19 13.1 13.1 79.3
DISAGREE 23 15.9 15.9 95.2
STRONGLY
7 4.8 4.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
4.8%
DI
SAGREE
15.9% STRONGLY AGREE
31.0%
NEU TRAL
13.1%
AGREE
35.2%
As far as the price of the services provided by the third party contractor is concerned. There are 31% of
respondents who were strongly agreed, 35.2% were agreed, 13.1% were neutral, 15.9% were disagreed, and
4.8% of the respondents were strongly disagreed that the third party contractor provides the services of security
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
24 16 .6 16 .6 16 .6
AGREE
AGREE 43 29.7 29.7 46 .2
NEU TRAL 36 24.8 24.8 71.0
DISAGREE 32 22.1 22.1 93.1
STRONGLY
10 6 .9 6 .9 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
STRONGLY AGREE
6 .9%
16 .6 %
DI
SAGREE
22.1%
AGREE
29.7%
NEU TRAL
24.8%
16.6% of the respondents were strongly agreed, 29.7% were agreed, 24.8% were neutral, 22.1% were
disagreed, and 6.9% were strongly disagreed that contractor provide best quality services.
Outsourcing 36
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
21 14.5 14.5 14.5
AGREE
AGREE 41 28.3 28.3 42.8
NEU TRAL 46 31.7 31.7 74.5
DISAGREE 31 21.4 21.4 95.9
STRONGLY
6 4.1 4.1 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
STRONGLY AGREE
4.1%
14.5%
DI
SAGREE
21.4%
AGREE
28.3%
NEU TRAL
31.7%
There are 14.5% of respondents who were strongly agreed, 28.3% were agreed, 31.7%were neutral, 21.4%
were disagreed, and 4.1% were strongly disagreed that the services of security guards are outsourced due to the
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
12 8.3 8.3 8.3
AGREE
AGREE 46 31.7 31.7 40.0
NEU TRAL 38 26 .2 26 .2 6 6 .2
DISAGREE 40 27.6 27.6 93.8
STRONGLY
9 6 .2 6 .2 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE STRONGLY AGREE
6 .2% 8.3%
DI
SAGREE
27.6 %
AGREE
31.7%
NEU TRAL
26 .2%
8.3% of respondents were strongly agreed, 31.7% were agreed, 26.2% were neutral, 27.6% were disagreed, and
6.2% were strongly disagreed that the outsourcing the services of security guards enables to learn new things
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
10 6 .9 6 .9 6 .9
AGREE
AGREE 52 35.9 35.9 42.8
NEU TRAL 36 24.8 24.8 6 7.6
DISAGREE 31 21.4 21.4 89.0
STRONGLY
16 11.0 11.0 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE STRONGLY AGREE
11.0% 6 .9%
DI
SAGREE
21.4% AGREE
35.9%
NEU TRAL
24.8%
There are 6.9% respondents who were strongly agreed, 35.9% were agreed, 24.8% were neutral, 21.4%
were disagreed and 11% were strongly disagreed that it develops good relationships with other organizations.
Outsourcing 39
TRAINED STAFF
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
50 34.5 34.5 34.5
AGREE
AGREE 60 41.4 41.4 75.9
NEU TRAL 15 10.3 10.3 86 .2
DISAGREE 16 11.0 11.0 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
2.8%
DI
SAGREE
11.0%
STRONGLY AGREE
NEU TRAL
34.5%
10.3%
AGREE
41.4%
There are 34.5% respondents who were strongly agreed, 41.4% were agreed, 10.3% were neutral, 11%
were disagreed and were 2.8% were strongly disagreed that the contractors have trained and specialized people.
Outsourcing 40
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
25 17.2 17.2 17.2
AGREE
AGREE 59 40.7 40.7 57.9
NEU TRAL 28 19.3 19.3 77.2
DISAGREE 29 20.0 20.0 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
NEU TRAL
19.3%
AGREE
40.7%
There are17.2% respondents who were strongly agreed, 40.7% were agreed, 19.3% were neutral,
20% disagreed and 2.8% were strongly disagreed that quick services are offered by contractor.
Outsourcing 41
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
25 17.2 17.2 17.2
AGREE
AGREE 63 43.4 43.4 6 0.7
NEU TRAL 36 24.8 24.8 85.5
DISAGREE 17 11.7 11.7 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
2.8%
DI
SAGREE STRONGLY AGREE
11.7% 17.2%
NEU TRAL
24.8%
AGREE
43.4%
There are 17.2% of respondents who were strongly agreed, 43.4% were agreed, 24.8% were neutral, 11.7%
were disagreed and 2.8% were strongly disagreed that it’s spare money to spend on new services.
Outsourcing 42
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
25 17.2 17.2 17.2
AGREE
AGREE 34 23.4 23.4 40.7
NEU TRAL 29 20.0 20.0 6 0.7
DISAGREE 41 28.3 28.3 89.0
STRONGLY
16 11.0 11.0 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
STRONGLY AGREE
11.0%
17.2%
DI
SAGREE
28.3%
AGREE
23.4%
NEU TRAL
20.0%
There are 17.2% of respondents who were strongly agreed, 23.4% were agreed, 20% were neutral, 28.3%
were disagreed and 11% were strongly disagreed that it prevents the disclosure of confidential information.
Outsourcing 43
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
16 11.0 11.0 11.0
AGREE
AGREE 30 20.7 20.7 31.7
NEU TRAL 27 18.6 18.6 50.3
DISAGREE 43 29.7 29.7 80.0
STRONGLY
29 20.0 20.0 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY AGREE
STRONGLY DI
SAGREE 11.0%
20.0%
AGREE
20.7%
DI
SAGREE
29.7%
NEU TRAL
18.6 %
There are 11% of respondents were strongly agreed, 20.7% were agreed, 18.6% were neutral, 29.7%
were disagreed and 20% were strongly disagreed that it is beneficial to alleviate the self sufficiency.
Outsourcing 44
C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
37 25.5 25.5 25.5
AGREE
AGREE 51 35.2 35.2 6 0.7
NEU TRAL 27 18.6 18.6 79.3
DISAGREE 23 15.9 15.9 95.2
STRONGLY
7 4.8 4.8 100.0
DISAGREE
Tota l 145 100.0 100.0
STRONGLY DI
SAGREE
4.8%
DI
SAGREE STRONGLY AGREE
15.9% 25.5%
NEU TRAL
18.6 %
AGREE
35.2%
There 25.5% respondents who were strongly agreed, 35.2% were agreed, 18.6% were neutral, 15.9%
were disagreed and 4.8% were strongly disagreed that the contractor’s firm better understand the security
Sementic Analysis
NAME OF ORGANIZATION * CITY OF ORGANIZATION Cross tabulation
C ITY OF ORGANIZATION
GU JRANW ALA si
alko
t gha kha r w a zi
ra ba d gu j
ra t KAMOKI LAHORE To
ta l
NAME OF RBS 1 1 0 0 1 0 0 3
ORGANIZATION
ARIF HABIB 1 1 0 0 1 0 0 3
EMIRATS
GLOBAL 1 1 0 0 0 0 0 2
Isl
a mi
cBa nk
MEEZAN
1 1 0 0 0 0 0 2
BANK
SILK BANK, 1 0 0 0 0 0 0 1
ALLIED
4 1 1 1 1 1 0 9
BANK
Du ba iIsl
a mi
c 1 0 0 0 1 0 1 3
Nobl
e
1 0 0 0 0 0 0 1
Ex
cha nge
MC B 6 1 1 1 1 1 3 14
BANK AL
2 0 0 1 0 0 1 4
Ha bi
b
Ba nkAl
2 1 0 1 1 0 1 6
Fa l
ah
NIB 1 1 1 1 1 0 1 6
As ka riBa nk 1 1 0 0 0 1 1 4
U BL 5 1 1 1 1 0 3 12
HBL 7 1 1 1 1 1 4 16
Tru s tBa nk 0 1 0 0 0 0 0 1
Ba nki
sla mi 0 1 0 0 1 0 0 2
Fa ys a lBa nk 0 1 0 0 1 0 1 3
SME 1 1 0 0 0 0 1 3
Outsourcing 46
Sa mba Ba nk 0 1 0 0 0 0 1 2
Sta nda rd
1 2 1 0 0 0 1 5
C ha rte
r
TheBa nko
f
2 1 1 1 1 0 1 7
Pu nj
ab
Atl
a s Ba nk 1 1 0 0 1 1 1 5
C i
ty Ba nk 1 0 0 0 0 0 1 2
Sta teBa nk 1 0 0 0 0 0 0 1
NBP 4 0 1 1 0 0 2 8
IDBP 1 0 0 0 0 0 0 1
KASB Ba nk 2 1 0 0 0 0 0 3
So
neriBa nk 0 1 0 1 0 0 1 3
AlBa ra ka
0 0 0 0 1 0 0 1
Isl
a mi
Khu s ha l
i
0 0 0 0 1 0 0 1
ba nk
My ba nk 1 0 0 0 1 0 0 2
Firs tW o
men
0 1 0 0 0 0 1 2
Ba nk
Na ti
o na l
1 0 0 0 0 0 1 2
Sa ving Ba nk
Pu njab
Pro vi
nci al
0 0 0 0 0 0 1 1
C orpora ti
ve
Ba nk
ZTBL 0 0 0 0 0 0 1 1
Ha bib
0 0 0 0 0 0 1 1
Me tropo
li
ta n
HSBC 0 1 0 0 0 0 0 1
JS BANK 1 0 0 0 0 0 0 1
To
ta l 52 24 8 10 16 5 30 145
This table shows that 52 branches of banks covered from Gujranwala, 30 from Lahore, 24 from Sialkot, 16 from Gujrat,
10 from Wazirabad, 8 from Ghakhar, and 5 from Kamoki. We have covered 16 branches of HBL, 14 of MCB, 12 of
UBL, 9 of Allied bank, and 8 branches of NBP. The covered branches of other banks are less then 8.
Outsourcing 47
C ITY OF ORGANIZATION
GU JRANW ALA si
alko
t gha kha r w a zi
ra ba d gu j
ra t KAMOKI LAHORE To
ta l
TYPE OF FOREIGN 10 8 2 2 6 0 4 32
ORGANIZATION
LOCAL 42 16 6 8 10 5 26 113
Total 50 24 8 10 16 5 30 145
Research infers that out of 145 branches of banks there are 113 local organizations and 32 are foreign
organizations. In Gujranwala 42 branches are of local organizations and 10 braches are of foreign
organizations. We have covered 16 braches of local organizations and 8 braches of foreign organizations from
Sialkot. We took 6 branches of local organizations and 2 branches of foreign organizations from Ghakhar.
There are 8 branches of local organizations and 2 braches of foreign organizations which we have covered from
Wazirabad. We have covered 10 braches of local organizations and 6 branches of foreign organizations from
Gujrat. We have covered only 5 branches of local organizations from Kamoki. From Lahore we have taken 26
YES NO To
ta l
NAME OF RBS 0 3 3
ORGANIZATION
ARIF HABIB 1 2 3
EMIRATS GLOBAL
0 2 2
Isl
a mi
cBa nk
MEEZAN BANK 0 2 2
SILK BANK, 0 1 1
ALLIED BANK 2 7 9
Du ba iIsl
a mi
c 1 2 3
No
bleEx
cha nge 0 1 1
MC B 7 7 14
BANK AL Ha bi
b 1 3 4
Ba nkAlFa l
ah 2 4 6
NIB 2 4 6
As ka riBa nk 0 4 4
U BL 1 11 12
HBL 7 9 16
Tru s tBa nk 0 1 1
Ba nki
sla mi 0 2 2
Fa ys a lBa nk 0 3 3
SME 0 3 3
Sa mba Ba nk 1 1 2
TheBa nko
fPu nj
ab 6 1 7
Outsourcing 49
Atl
a s Ba nk 2 3 5
C i
ty Ba nk 0 2 2
Sta teBa nk 1 0 1
NBP 1 7 8
IDBP 0 1 1
KASB Ba nk 0 3 3
So
neriBa nk 0 3 3
AlBa ra ka Isl
a mi 0 1 1
Khu s ha l
iba nk 0 1 1
My ba nk 1 1 2
Fi
rs tW o
men Ba nk 1 1 2
Na ti
o na lSa vi
ng
2 0 2
Ba nk
Pu nja b Pro vi
ncial
1 0 1
C orpo ra ti
veBa nk
ZTBL 1 0 1
Ha bi
b Me
tro
pol
ita n 0 1 1
HSBC 0 1 1
JS BANK 1 0 1
To
ta l 44 101 145
101 branches of banks argued that security guard should not be the employee of bank while 44 branches
opposed this view and argue that security guard should be the employee of bank. All the 3 branches of RBS
argued that security guard should not be the employee of the bank. 2 branches of Arif Habib Bank argued that
security guard should not be the employee of the bank and 1 branch of this bank argued that security guard
should be the employee of the bank. 2 branches of Emirates Global argued that security guard should not be the
employee of the bank. All 2 branches of Meezan bank prose that security guard should not be the employee of
the bank. Silk bank also recommended that security guard should not be the employee of the bank. There are 7
Outsourcing 50
branches of Allied bank which are in favor that security guard should not be the employee of the bank while 2
branches of this bank argued that security guard should be the employee of the bank. There are 2 branches of
Dubai Islamic bank which refer security guard should not be the employee of the bank and 1 branch of this
bank opposed this concept. Noble currency Exchange from Gujranwala argued that security guard should not
be the employee of the bank. 50% of covered branches of MCB argued that security guard should not be the
employee of bank while remaining 50 % opposed this concept. There are 3 branches of Bank Al Habib were in
favor that security guard should not be the employee of the bank while 1 branch of this bank opposed this
concept. There are 4 branches of Bank Al Falah which argued that security guard should not be the employee
of the bank while 2 branches of this bank opposed this concept. There are 4 branches of NIB argued that
security guard should not be the employee of the bank while 2 branches opposed this concept. Askari bank
argued that security guard should not be the employee of the bank. 11 branches of UBL argued that security
guard should not be the employee of the bank while 1 branch of this bank opposed this concept. 9 braches of
HBL argued that security guard should not be the employee of the bank while 7 branches opposed this concept.
Trust bank argued that security guard should not be the employee of the bank. Bank Islami argued that security
guard should not be the employee of the bank. All 3 branches of Faysal Bank argued that security guard should
not be the employee of the bank. 3 branches of SME bank argued that security guard should not be the
employee of the bank. 1 branch of Samba bank argued that security guard should not be the employee of the
bank while 1 branch of this bank opposed this concept. 3 branches of Standard Chartered bank argued that
security guard should not be the employee of the bank while 2 branches of this bank opposed this concept. 1
branches of the Bank of Punjab argued that security guard should not be the employee of the bank while 6
branches were in favor that security guard should be the employee of the bank. 3 branches of Atlas bank argued
that security guard should not be the employee of the bank while 2 branches were not in favor of this concept.
City bank argued that security guard should not be the employee of the bank while State Bank argued that
Outsourcing 51
security guard should be the employee of the bank. 7 branches of NBP argued that security guard should not be
the employee of the bank while 1 branch of NBP security guard should be the employee of the bank. IDBP,
KASB bank, Soneri bank, Al Baraka Islami bank and Khushali bank argued that security guard should not be
the employee of the bank. Out of 2 one branch of My bank argued that security guard should not be the
employee of the bank while 1 branch of this bank opposed this concept. First Women bank also give the same
arguments as given by the My bank. All 2 branches of National Saving bank argued that security guard should
be the employee of the bank. Punjab Provincial Corporated bank and ZTBL both argued that security guard
should be the employee of the bank. Habib Metropolitan and HSBC both argued that security guard should not
be the employee of the bank while JS bank argued that security guard should be the employee of the bank
NAME OF ORGANIZATION * ARE YOU OUTSOURCING THE SERVICES OF SECURITY GUARDS? Crosstabulation
ARE YOU
OU TSOU RC INGTHE
SERV IC ES OF
SEC U RITY GU ARDS?
YES NO To
ta l
NAME OF RBS 3 0 3
ORGANIZATION
ARIF HABIB 3 0 3
EMIRATS GLOBAL
2 0 2
Isl
a mi
cBa nk
MEEZAN BANK 2 0 2
SILK BANK, 1 0 1
ALLIED BANK 9 0 9
Du ba iIsl
a mi
c 3 0 3
No
bleEx
cha nge 1 0 1
MC B 13 1 14
BANK AL Ha bi
b 4 0 4
Ba nkAlFa l
ah 6 0 6
NIB 6 0 6
Outsourcing 52
As ka riBa nk 4 0 4
U BL 12 0 12
HBL 16 0 16
Tru s tBa nk 1 0 1
Ba nki
sla mi 2 0 2
Fa ys a lBa nk 3 0 3
SME 3 0 3
Sa mba Ba nk 2 0 2
TheBa nko
fPu nj
ab 0 7 7
Atl
a s Ba nk 5 0 5
C i
ty Ba nk 2 0 2
Sta teBa nk 0 1 1
NBP 7 1 8
IDBP 1 0 1
KASB Ba nk 3 0 3
So
neriBa nk 3 0 3
AlBa ra ka Isl
a mi 1 0 1
Khu s ha l
iba nk 1 0 1
My ba nk 2 0 2
Fi
rs tW o
men Ba nk 2 0 2
Na ti
o na lSa vi
ng
1 1 2
Ba nk
Pu nja b Pro vi
ncial
1 0 1
C orpo ra ti
veBa nk
ZTBL 0 1 1
Ha bi
b Me
tro
pol
ita n 1 0 1
HSBC 1 0 1
JS BANK 1 0 1
To
ta l 133 12 145
Outsourcing 53
This research indicates that out of 145 branches of banks 133 branches are outsourcing the services of security
guards while 12 branches are not outsourcing the services of security guards. All seven branches of The bank
of Punjab are not outsourcing the services of security guards. 1 branch of MCB, 1 branch of State Bank, 1
branch of NBP, 1 branch of National saving Bank and 1 branch of ZTBL are also not indulged in outsourcing
of security guards.
Street Ethnography
Along with questionnaires we also discussed the benefits of outsourcing with managers of almost all branches.
It was an interesting debate. Our concepts are widened by such type of unstructured interviews. When did we
go to any branch first of all we approached to the branch manager after a little bit discussion we turned to our
questionnaire. Some of managers filled our questionnaire by themselves and some managers referred us to
Factor loading method uses covariance and correlation matrix analysis to explain the relationship between
variables by using less number of factors (Ozdamar, K, 1999). It results in increased parsimony (Leech, Barrett
and Morgan, 2005). Principle component method was used in order to explain the relationship between
observed variables by using fewer variables. In principle component analysis an ordinary correlation matrix is
used to perform the analysis in which complete description of each variable is shown.
Outsourcing 54
Using PCA method it is assumed that the variables in the analysis are normally distributed because skewness or
outliers affect the observed relationship. “Varimax with Kaiser Normalization” has been used to test the
normality of data. It was found that data was normally distributed. PCA method is based on correlation and
requires the variable to be related to each other in a linear fashion at least some of the variables should be
Ka i
se r-Me yer-Ol
kin Me
a s u reo
fSa mpl
ing
Ade qu a cy. .815
Ba rtl
e tt's Tes to
f Appro
x.C hi
-Squ a re 780.370
Sphe rici ty df 136
Si
g. .000
If the value of KMO is greater then 0.5 then the variables are normally distributed. Here the value of KMO is
0.815 so the results are significant. As the value of Bartlett’s test of sphericity is 0.000 so there will be some
Ex tra cti
o n Su ms o fSqu a re d
Ini
tia lEige nva l
ue s Lo a dings Ro ta ti
o n Su ms o fSqu a red Loa dings
% o f C u mu l
a ti
ve % o f C u mu la ti
ve % o f C u mu l
a ti
ve
C o
mpo
nent To ta l V a ri
a nce % To ta l V a ri
a nce % To ta l V a ri
a nce %
1 5.179 30.46 2 30.46 2 5.179 30.46 2 30.46 2 2.947 17.333 17.333
2 1.849 10.877 41.339 1.849 10.877 41.339 2.577 15.16 2 32.495
3 1.6 06 9.449 50.789 1.6 06 9.449 50.789 2.293 13.489 45.984
4 1.174 6 .903 57.6 92 1.174 6 .903 57.6 92 1.990 11.708 57.6 92
5 .927 5.456 6 3.148
6 .781 4.594 6 7.742
7 .718 4.225 71.96 7
8 .701 4.121 76 .088
9 .6 51 3.830 79.918
10 .6 07 3.570 83.488
11 .557 3.276 86 .76 3
12 .476 2.801 89.56 4
13 .455 2.6 78 92.242
14 .437 2.571 94.813
15 .333 1.959 96 .772
16 .289 1.6 99 98.472
17 .26 0 1.528 100.000
Ex
tra cti
o n Me
tho
d:Principa lC o
mpo ne ntAna l
ys i
s.
Table shows the Initial Eigenvalues, extraction sums of Squared loading both individual and cumulative, and
rotation sums of squared loading (where applicable). Four variables are extracted as there Eigenvalue is above
1.
Outsourcing 56
C o
mpo
nent
1 2 3 4
FOC U S ON OTHER
IMPORTANT FU NC TIONS .133 .001 .835 .129
OF THE ORGANIZATION
FLEX IBILTY .073 .126 .781 .16 3
ENABLE TO PROV IDE
MORE SERV IC ES .251 .258 .741 .083
SAV ES INV ESTMENT IN
OW N EQU IPMENTS .019 .756 .228 .174
SAV ES INV ESTMENT IN
HIRINGOW N STAFF .009 .731 .229 .147
C ONTRAC TOR'S BETTER
TEC HONOLOGY .482 .121 .379 .181
C ONTRAC TOR
PROV IDES SERV IC ES AT .199 .712 -.082 -.120
LESS PRIC E
C ONTRAC TOR
PROV IDES YOU BEST .579 .194 .188 .311
QU ALITY SERV IC ES
C ONTRAC TOR HAS
BETTER REPU TE IN .6 59 .151 .098 .216
MARKET
ABLE TO LEARN NEW
THINGS .412 -.076 .044 .599
GOOD RELATIONSHIP
W ITH OTHER .701 .342 .002 -.141
ORGANIZATIONS
TRAINED STAFF -.057 .490 .146 .6 6 9
C ONTRAC TOR
PROV IDES QU IC K .047 .191 .229 .754
SERV IC E
SAV ES MONEY TO
SPEND ON NEW .287 .6 26 .06 5 .193
SERV IC ES
PREV ENTS DISC LOSU ER
OF THE C ONFIDENTIAL
INFORMATION .6 94 .101 .131 .011
LAC K OF SELF
SU FFIC IENC Y .547 -.055 .054 .038
C ONTRAC TOR BETTER
U NDERSTANDS THE
RQU IREMENTS OF .538 -.035 .196 .515
SEC U RITY SYSTEM
This table gives the rotated component matrix for the perceived benefits of outsourcing guards by financial
institutions. After rotation good relationships with other organizations is selected as most important perceived
benefit of outsourcing after this freeing investment in own equipments is second most important benefit while
focus on other important functions and focus on other important functions of the financial institutions got the
R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
****** Method 1 (space saver) will be used for this analysis ******
_
Reliability Coefficients
Alpha = .7242
Cronbach’s alpha was computed to assess the reliability of variables. The value of alpha is
0.7242 which is in between 0.7 and 0.9 so the variables are reliable.
According to literature review and unstructured interviews the most important benefit of
outsourcing is reduction in cost. More focus on core functions and flexibility are other
important benefits of outsourcing. According to our research the most important perceived
benefit of outsourcing is better relationship with other organizations also saving in investment
Outsourcing 58
in own equipments, quick services and focus on other important functions of the organizations
institutions.
CRITICISM OF OUTSOURCING
Quality Risk
There is may be the quality risk when you outsource the services from contractor. It may be of lower quality
then those which you were offering before. You should check the quality of the service provided by the
Quality fade
Quality fade is the deliberate and secretive reduction in the quality of labor in order to widen profit margins.
The downward changes in human capital are subtle but progressive, and usually unnoticeable by the out
source/customer.
Public opinion
There is a strong public opinion regarding outsourcing that outsourcing damages a local labor market. Outsourcing
is the transfer of the delivery of services which affects both jobs and individuals.
Language skills
Outsourcing 59
In the area of call centers or those where language skills are the part of the job end-user-experience is deemed
Qualifications of outsourcers
The supplier may replace staff with less qualified people or with people with different non-equivalent
qualifications.
There are some of the reasons due to which the outsourcing should become successful.
CONCLUSION
After doing analysis we concluded that security is an important issue among all financial sectors. Almost all
banks and money exchangers outsourcing the services of security guards due to different factors. We analyze
all the factors among which some of the factors have high importance. Outsourcing of security guards is
beneficial in reducing the cost and freeing of resources to utilize on core functions of financial institutions. It
provides better quality services. By outsourcing the security provider companies registered by State Bank the
financial institutions can increase their goodwill and reputation in the eyes of customer. Financial institutions
can increase their customer satisfaction by outsourcing practices in security system. By outsourcing practices
financial institutions can avail flexibility and can execute the operations of the business effectively. There are
some drawbacks of outsourcing of security guards but overall it is very beneficial for financial institutions to
REFERENCES
Cynthia Doyle, David Tapper, “Evaluating the Benefits of IT Outsourcing: An IDC White Paper”, 2001
Charles P. Whaley, “What CIOs must know MS Exchange Outsourcing: Benefits & Expectations”, 2005
Dulacha Barako, Peter Gatere, “outsourcing practices in Kenyan banking sector” 2008.
Ewarenow, “Benefits Of IT Outsourcing: An alliance of US business and computer consultants and Thai
Daryl Hill, “Benefits of Mortgage Outsourcing: licensed mortgage operators and lending companies.”,
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Holger Gorg, Aoife Hanley & Eric Strobl ,“Productivity effects of international outsourcing: evidence from
Jeff Miller,” Simplifying Benefits Outsourcing: Adopting the TBO Approach”, 2006
Karen K. Greene, “Six Benefits of Outsourcing Your Packaging Engineering Activities A Case for Virtual
Laura Grehan, “Irish Computer Society Press Information: Study reveals Small Firms less likely to outsource
IT Services”, 2007
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Mark Burr, “Outsourcing claims: the advantages for reinsurers in outsourcing claims run-off”, 2004
Mingu Kang, Xiaobo Wu,” Strategic Outsourcing for Sustainable Competitive Advantages:Case studies of
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