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The Business Outsourcing in
Telecommunication Industry: Case of Pakistan
ARTICLE in TRANSFORMATIONS IN BUSINESS AND ECONOMICS · DECEMBER 2014
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4 AUTHORS, INCLUDING:
Rizwan Raheem Ahmed

Jolita Vveinhardt

Indus University, Karachi, Pakistan

Lithuanian Sports University

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Nawaz Ahmad
SZABIST, Karachi, Pakistan
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R.R. Ahmed, J. Vveinhardt, N. Ahmad,
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Implementation of IT and Innovations: Implications for Business
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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.

BUSINESS & ECONOMICS
© Vilnius University, 2002-2014
© Brno University of Technology, 2002-2014
© University of Latvia, 2002-2014

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: rizwanraheemahmed@gmail.com
4Mirza Mujeeb

Department of Business
Administration & Commerce
Indus University
Block-17, Gulshan, Karachi
Pakistan
Tel.: +92 322 2001723
E-mail: mujeebmirza@hotmail.com

2Jolita

Vveinhardt

Institute of Sport Science and
Innovations
Lithuanian Sports University
Sporto str. 6, Kaunas
Lithuania
Tel.: +370 698 06668
E-mail: jolitaw@gmail.com

3Nawaz

Ahmad

Department of Business
Administration & Commerce
Indus University
Block-17, Gulshan, Karachi
Pakistan
Tel.: +92 300 9292422
E-mail: nawaz@indus.edu.pk

1

Rizwan 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.
2

Jolita 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, Vol. 13, No 2B (32B), 2014

Indus University. 2014 2nd Revision: October. Assistant Professor and Head of Research & Publications. TRANSFORMATIONS IN BUSINESS & ECONOMICS. They relate to cost reduction of day-to-day operation. JEL classification: C12. Islamic Finance. multiple linear regressions.4460 Implementation of IT and Innovations: Implications for Business 3 Nawaz Ahmad. He is the author and a co-author of several articles in national and international journals. L96. 13. is a Professional Telecommunication Engineer working for Multinational Telecommunication organization. Economics. 4Mr. Outsourcing. MS. The Multiple linear regressions show that the only two reasons – critical drivers and benefits – met by outsourcing in telecommunication (BMOT) are statistically significant. Business Modelling and Re-engineering. the Warid Telecomm Pakistan for the last 15 years. reallocate and focus on resources and have a positive impact on telecommunication businesses in Pakistan. Ahmad. optimization of capital expenditures. In this regard the SPSS software has been used to analyze the dataset and to come to methodology-based conclusions.R.R. He has overall 20 years practical experience in Telecommunication industry in Pakistan and abroad. business outsourcing. No 2B (32B). 2014 1st Revision: September. In this regard different reasons have been examined as correlation and multiple linear regression methodology has been applied to check how the reasons correlate. J. Time Series. Department of Business Administration & Commerce. Phil. Mujeeb Mirza. Vveinhardt. heading of count control. 2014 ABSTRACT. critical drivers. Pakistan. This paper analyzes the outsourcing phenomenon and its impact on the cost of doing business in telecommunication business in Pakistan. Financial Management. 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. Mirza 761 ISSN 1648 . being associated with research. Financial & Managerial Accounting. N. 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. Thus. Statistical quantitative tool like correlation and multiple linear regressions were used in this paper. has the experience of teaching profession for 15 years. He was a part of the team involved in the implementation of 3G & 4G technologies in Warid Telecom. MBA at Indus University. 2014 Accepted: October. Moreover. Received: September. he has published 30 research articles in national and international journals and 17 conference proceedings in the field of Management Sciences and Economics. Ahmed. He has recently completed his MS. he is the Editor of IJMS (Indus Journal of Management Sciences) as well. M. flexibility. complement existing know-how. Corporate Finance.. KEYWORDS: telecommunication industry. 2014 . etc. M55. Econometrics. Vol. M. They also acquire new capabilities. and access to new technology. correlation. He has taught various subjects such as Research Methods. His areas of expertise are Telecommunication.

(2010) are of major importance in different countries and relevant to the context of this presented research. Yet. There are no differences in the qualifications of HRM professionals and consultants but consultants are more likely to have broader business experiences” (Sheehan. larger organisations were more likely to use consultants. J. Grimshaw. Thite (2008).R. 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.14). 13. Therefore.R. information systems and connections. Ahmad. Olateju and G.C. The authors have deduced that the profit and outsourcing relationship consists of the properties of the plant and particularly depends upon its size. the cooperation between customers and the company and a decrease in management over how certain solutions are offered and improved. many business organizations are still reluctant to outsource business processes that are part of their core business. On the other hand. The research done on outsourcing in Australia revealed that “with respect to organisational determinants. Hammed. higher HRIS outsourcing in the public sector. agreements may in turn increase visibility of the business liability (see study by I.. On the one hand. complications to management. keeping this objective in view. outsourcing TRANSFORMATIONS IN BUSINESS & ECONOMICS.A. M. 2014 . innovation and globalization growth have resulted in possibilities for the rise of doing business. Miozzo (2009).I.7 trillion in 2001. also the market for IT services depends on outsourcing. regions. p. No 2B (32B). Ghikas (2012) argues that outsourcing is a rapidly growing phase of economy of the world with a universal expenditure of about US $ 3. 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. Görg. Russell. According to D. M. De Bandt (1996). complexity in arms-length. p. Vveinhardt. the company’s decision on outsourcing is usually examined as a “make or buy problem”. The insights by researchers B. A.S. etc. The research conducted by N. Thus. According to J. N. Wong et al. and a focus on employee relations in the not-for-profit sector. 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. sector differences revealed higher recruitment and selection and performance-related pay outsourcing in the private sector. paying attention to the fact that the trends of outsourcing in telecommunication businesses have not been widely analyzed. This is of relevance both to countries that are economically well developed and to developing countries. Irefin. Business Process Outsourcing (BPO) has been proposed as one of the largest parts of expansion in the outsourcing market.4460 Implementation of IT and Innovations: Implications for Business Introduction Relevance of the research. Ahmed. Vol.O.N. and countries and even to the workers themselves. 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. 2012). A. market blemishes statistic problems. 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. Fernández and A. 2009. Competitive advantages related to inventions. the undertaken study is an imperative and essential in order to find out the impact of outsourcing in Telecommunication businesses in Pakistan. M.236). Mirza 762 ISSN 1648 . O. Recently broad opportunities opened to companies operating on a global scale especially/particularly in the spheres of telecommunications. transport. Valencia (2013. D. According to H.

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. The business outsourcing was researched in various aspects and to illustrate the variety a brief overview of the research topics is presented further. 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. Ghani. were found to vary according to the size of the manufacturing firm” (Rana. The authors note that nonetheless. Vveinhardt. Vol. and these are multiplied under certain sectoral and institutional conditions” (Grimshaw. Mirza 763 ISSN 1648 . Ahmed. defined as the percentage of IT activities and components selected to be outsourced.11). organizations meet new challenges: “New tensions and conflicts are the hallmarks of a network-based approach to HRM. p. It takes time to build trust in a partnership. despite its TRANSFORMATIONS IN BUSINESS & ECONOMICS. 13. outsourcing strategies are viewed negatively by the service receivers because of the fear of losing control over the process. quality of work. The research done in Pakistan revealed that “core competencies.R. R. 2009.1546). p. “Frequently. in the field of telecommunication of this country in particular. that more comprehensive research on outsourcing. business outsourcing is not assessed unambiguously. It has to be admitted.. The authors ascertain that “in Thailand. 2014 . (2014) maintain that information technology outsourcing (further – ITO) studies have been the focus of researchers for decades..R. Miozzo’s (2006). and ITO success. but there are still some sectors in which reluctance has been observed while considering outsourcing phenomena. Grimshaw. Therefore. 2014. Moreover. A major attention is paid to the comparison of the conditions and international business relations in different countries. This study was among the first to empirically investigate the relationship between the levels of ITO. research on ITO in Thailand’s financial industry has been limited. M. article examines the institutional effects on a fast-growing area of knowledge-intensive business services – Information Technology (further – IT) outsourcing. however. 2004. One of these sectors has been identified as telecommunication industry in Pakistan.263). Moreover. defined by the benefits received from outsourcing in Thailand” (p.4460 Implementation of IT and Innovations: Implications for Business becomes one of the strategic directions of doing business based on knowledge and technologies. Miozzo. Level of problem exploration: business outsourcing is a broadly analysed area examined in different sectors of the economy. Wongsaroj et al. has not been adequate which partly limits the business and cooperation development in both domestic and international market. No 2B (32B). and the need to maintain good relationships between researchers and end users” (p.256). p. 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. 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.S. initial trust would be a qualitative attribute that managers should look for in their selection of vendors for outsourcing” (Abdul-Halim et al. However. together with outsourcing practices.7). R. N. J. Ahmad.

and cost savings in government. project management and partnership management on IT outsourcing. (2014) identified that “they were then compared with general beliefs on IT outsourcing in the private sector. The other article by the mentioned authors. Findings and lessons of the empirical investigation of this study have provided useful guidelines for IT managers in the public sector” (p. The framework demonstrates the impact of four categories. organizational environment.and medium-sized family firms operating with technologies of low to medium complexity less likely to outsource than comparable nonfamily firms” (p. Moreover. 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. For example. (2011) propose that “transaction costs arising from human asset specificity. Vol.4460 Implementation of IT and Innovations: Implications for Business apparent deregulatory bias” (p. The views on the problem are especially relevant to the TRANSFORMATIONS IN BUSINESS & ECONOMICS. 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. Memili et al.108). the structural equation analysis supported the reasoning that cooperative goals foster open discussion of effective practices that.265). results in business development” (p. N. Ward (2007) maintains that “advocates of new public management (NPM) claim that private service delivery promotes efficiency. 2007) and may cause a problem of work relationships..627). It is important that is has been identified that outsourcing is relevant and effective in a different size (Klaas et al. 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.1563). W. Grimshaw. Belso-Martínez. 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..R.R. A. Moon et al. Ahmed. equal opportunities (Windebank. (2010) notify that this has become popular in India after the economic liberalization process. threats of opportunism. V. No 2B (32B). J. Outsourcing is analyzed in different studies both in private and public sector. Ahmad. while S. contract/project characteristics. The authors maintain that “framework is proposed and 13 IT outsourcing success factors from the private sector are identified through a literature review.1). 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. although critics of NPM cite numerous examples of failed attempts to apply NPM” (p. 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. Moon et al. Wong et al. E.. M. 2010) and is applied in different forms in organizations. J. (2010) research results show that “from 95 largely domestic outsourcing partnerships in China support the hypotheses that cooperative. 2004). where Indian employees provide customer service for US consumers. in turn. The research shows that the popularity of outsourcing is relevant to social and value changes in the society (de Ruijter. namely.47). 2014 .1). Vveinhardt. Specifically. effectiveness. J. 13. Poster (2013) analyzes hidden sides of the credit economy focusing on Indian call centres.1229).. 2005. and risk aversion will make small.R. Mirza 764 ISSN 1648 ..1522). Agrawal et al. (2014) study conducts an empirical investigation on IT outsourcing projects for e-government.

Factors of Outsourcing: There are different factors for outsourcing of organizations. decreasing expenses. periodic specific achievements and too high start of financial commitment for accomplishment of specific actions. Hojnik (2010). According to J. J. outsourcing is not a threat to economists of this nation but it is an opportunity to raise American pay checks. the following tasks of the research are set: 1. No 2B (32B). personal factors. The investigation examines the following hypotheses: TRANSFORMATIONS IN BUSINESS & ECONOMICS. Object of the research: business outsourcing in telecommunication industry. the outsourcing has an ability to increase the sales revenue as well as residual income. 13. the capacity enhancement advantage can be evaluated properly. In this respect. Ahmed. while the main reason is to keep an eye on the necessity of highly focus on the central part of activities. were high revenue. if the alarmists encourage people take boneheaded solutions. The major necessity is to get a better control and condense risk. development of business and personal reasons.R. Every company regularly has to choose either it should bring out a company action internally or pass this action to a vendor. 2. to identify the impact of outsourcing on the cost of business outsourcing in Pakistan. To achieve the aim. the outsourcing becomes known as the authority to some extent is given to the external company (Gilley. an outsourcing plan is at the centre of the process of retaining business transformation towards the flexibility of the organization structure. Thus. 3. According to Hojnik (2010). these processes may be faced by extreme changes which relate to procedure re-engineering. Mirza 765 ISSN 1648 . According to I. these referred to improving income. to research on outsourcing domination in Pakistan telecommunication industry. According to B. the efficiency of the operational functions can be increased with a tolerable risk and human resource management. Ahmad. M. 2014 . which is considered as a decision of make-or-buy choice. 2000). Vol. When the costs of production (internal and external) are considered.R. the need to enhance management and decrease threat. cost deduction. In Peter’s opinion (2009). Only rarely there is a need for specific activities and huge initial investment for getting certain activities. if the firms properly manage the outsourcing. It is an opportunity that will be squandered. and prosperity. the need of extreme concentration on the main part of actions.4460 Implementation of IT and Innovations: Implications for Business countries where the state takes an active part in telecommunication business and the effectiveness of management serves more criticism than praise. When a business selects a vendor to perform a specific task. it has to be said that the company outsources this particular action. (2012). the reasons for outsourcing of companies.. company growth. Papaioannou (2002). 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. Rasheed. as it has been argued by researchers. Nine categories of factors due to which organizations delegate their performances were analyzed. N. 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. Irefin et al. business factors. productivity. On the other hand.A. 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. to analyze the outsourcing from the point of view of critical drivers having done the study of the outsourcing existence.B. Vveinhardt.

and develop the existing product and generate an idea (reasons of development). 2014 . the key leverage and the reasons have positive or negative correlation and its effect on the company’s level by using multiple regression. N. Ahmed. Vveinhardt. Ahmad. labour costs and fixed costs (cost reasons). TRANSFORMATIONS IN BUSINESS & ECONOMICS. the following statements have been considered:  The telecommunication businesses want to reduce different types of costs. Measurement of reasons of outsourcing: Using the study of different literature the groups of reasons have been divided into nine categories: Profit. costs of capital expenditure.  The telecommunication businesses wish to resolve management problems. correlation evaluates the scale of the factor influence of the outsourcing on business. 2. Critical Drivers. Vol.R. Social. M. 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. Benefits.R. better results after outsourcing. No 2B (32B).  The telecommunication businesses wish to generate more profit and capture new markets (profit reasons). to better head count control and better manage the flexibility (reasons of organization). who were the staff of telecommunication businesses.S. They were distributed among 61 respondents. Consumers’ Benefits and Disadvantages in telecommunication sector. Mirza 766 ISSN 1648 .4460 Implementation of IT and Innovations: Implications for Business 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. 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. improve new product. Further the respondents were selected on the basis of convenience and purposive sampling. Descriptive statistics and Correlation and Multiple regression tools of analysis were used (Hojnik. T. To check the empirical relationship between the outsourcing. such as operating costs. Material and method Research Questions.  The telecommunication businesses wish to acquire advanced technology. Core Activities. 13. Questionnaires were used as the research instrument. According to H. J. Naru. 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. Financial and Ethical responsibilities and Reduction of risk. Truitt (2013). According to the different literature reviews. 2010). 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.

There are several types of MLR. T. Ahmed.  The telecommunication businesses wish to keep an eye on the scope of rare activities for the implementation (reason of rarely needed activities). Package.4460 Implementation of IT and Innovations: Implications for Business  The telecommunication businesses wish to watch their employees with adequate and right knowledge. Rasheed (2000). TRANSFORMATIONS IN BUSINESS & ECONOMICS. A statistical technique that uses several explanatory variables is used to predict the outcome of a response variable. Mirza 767 ISSN 1648 .R. Gilley. Populations and Sampling. Vveinhardt. but there may also be some negative effect of the outsourcing. The goal of multiple linear regression (MLR) is to model the relationship between the explanatory and response variables. experience and skills (reasons of personnel). 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.  The telecommunication businesses wish to make the core activities more attentive and focused (reason of focus).  The telecommunication businesses wish to handle better with operational activities to minimize risk (reasons of risk management and control). Survey Method. S. A. This present research has also used the same software for the different techniques as examined by the previous researchers for making sound decision. M. Naru. Ahmad. The questionnaire that has been developed to ask the questions taking an interview from the personnel of the telecommunication was used. the scale of the factor influence of the outsourcing on the business was evaluated by the correlation. 13. the businesses want to watch the positive effect on the outsourcing. Vol. 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. 2014 . It has been successfully approached by 261 telecommunications officials from different companies for taking samples to test the results. N. According to K. Data Analysis. Technique. Previous researches have tested business outsourcing by using Statistical Package of Social Sciences. The data on financial and non-financial effect have been collected via questionnaire. Truitt (2013). 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.R. 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. According to H.  The telecommunication businesses wish to avoid the high investment to implement the specific activities initially (reason of investment).M. J. In this regard the primary data is collected. included in Table 1. No 2B (32B).

F change The software enters IVs one by one until there are no more significant IVs to be Forward entered Backward regression enables the researcher to develop a model including the Backward entire significant variable..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. Results and Discussion The results of regression analysis are presented below. Vol. 2014 ..R. 13.. Ahmed.2. by removing the insignificant ones. Multiple linear regression models: the model for MLR.... is: Y = B0 + B1x1 + B2x2 + .e. 2006.. i. TRANSFORMATIONS IN BUSINESS & ECONOMICS. No 2B (32B).R. Gujarati. Ahmad. M. Table 2 defines how much independent variables explain dependent variable..4460 Implementation of IT and Innovations: Implications for Business Table 1. Multiple linear regression: type and characteristics Type Direct (or Standard) Hierarchical Characteristics All IVs are entered simultaneously IVs are entered in steps.. given n observations. 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. Vveinhardt. J.. N. + Bpxp + Ei where i = 1. Mirza 768 ISSN 1648 . some before others Interpret: R2 change. The summary of the model represents R and R square with respect to dependent and independent variables. A combination of Forward and Backward MLR Stepwise Source: adapted to D.

Desires.054 -0.000) is less than 0.151 -1.596 -0. b. J. Vol. BMOT. Predictors: (Constant).563 0. Error of the Estimate 1 0.090 -0.401 0. No 2B (32B).850 0.258 -0.132 -0. Dependent Variable: Outsourcing is Leverage. The coefficients represent that the model applying selected variables is either statistically significant or not in the multiple linear regression (Table 4). showing that only one independent variable Critical Drivers and BMOT have a significant impact on the outsourcing since their prob value < 0.296 0.R.393 0. In Table 3. the probability value of F-statistics (F = 5. Critical Drivers.649 -0.074 1.349 0.590 Model Regression Residual Total Df 8 52 60 Mean Square 3.R.054 0.000 0. Model summary: Dependent & Independent Variables Model R R Square Adjusted R Std. Coefficients: Significance of Selected Variables Model 1 (Constant) Critical Drivers Core activities BMOT SFER Desires Unfavourable Activities Disadvantages Outnumber Advantages at Employment Level Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing Unstandardized B 5. Ahmad.007 Coefficients Std.304 0.809 Source: created by authors.169 a. ANOVAs (Dependent Variables & Predictors) Sum of Squares 30.279 -0.143 0.593 0.000b a.010 0. The analysis of variance (ANOVAs) represents the model taking the selected variable (Table 3). Ahmed.850 P = 0.063 0.227 0. Error 2.594 33.275 0.068 0. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing.4460 Implementation of IT and Innovations: Implications for Business Table 2. 5.654 F Sig.934 -0. Vveinhardt. Dependent Variable: Outsourcing is Leverage. core activities. The coefficients in Table 4.015 5. TRANSFORMATIONS IN BUSINESS & ECONOMICS. Unfavourable Activities.163 0.729 -0.894 0.673 -0. SFER. Table 3.101 0.134 0.005 then the F value is statistically significant and the predictors are jointly significant for they explain Y significantly.556 0.847 -0.534 0. 13. M. 2014 .474 0. Source: created by authors.064 -0.184 0. Disadvantages are more than Advantages at Employment Level.394 0. N.05. Source: created by authors.583 -2.824 0.103 -0. Mirza 769 ISSN 1648 .049 Standardized Coefficients T Sig 0. Table 4.996 64.688a 0.

209 ---- 0. J.037** 0. Vveinhardt.4460 Implementation of IT and Innovations: Implications for Business Therefore.015 0.269* -0.137 -0.100 0.096* ----0. in order to determine the association between outsourcing. the BMOT decreases by 0.012 -0.054 and has a positive impact. Mirza 770 ISSN 1648 .000 -0.013 0. Table 5.R.310* ----0.267 -0.248** -0. Ahmad.05.934. Therefore. BMOT. the null hypothesis that there is no correlation cannot be rejected.115 ----- -0. Vol.189 4 5 6 7 8 -----0. it could be concluded that the 7th model is significant which shows that only BMOT & Critical Drivers have an impact on outsourcing.571** 0. unfavourable activities.177* -0.180 0.279* -0. TRANSFORMATIONS IN BUSINESS & ECONOMICS. the Pearson correlation was applied. 2014 . Table 5 summarizes the results of correlation analysis between the reasons for outsourcing and selected financial and non-financial indicators of company performance.177 -0. core activities.01 level (2-tailed). therefore the null hypothesis was not rejected. In Table 5.039 -0. Source: created by authors. The prob values of other variables are > 0. There is no significant correlation of outsourcing with the variables where the prob value > 0.016 -0.052 ----0.015 9 ------ ------ ** Correlation is significant at the 0. Therefore.153 ------0. N. 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.010 -0.075** -0.100 -0. critical drivers. 13. when it increases by 1 unit.05 and not significant.037 -0.05. Correlation Analysis: Outsourcing & Selected Indicators 1 2 3 4 5 6 7 8 9 Indicators Outsourcing is Leverage Critical Drivers Core activities BMOT Desires SFER Unfavourable Activities Disadvantages Outnumber Advantages at Employment Level Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing 1 2 3 0.210 -0.067 -0. * Correlation is significant at the 0.R.178 0.234** -0. the critical driver increases by 1. disadvantages which outnumber advantages at employment level and gain better results using strategic framework for planning and managing IT outsourcing. Table 6 represents the backward multiple linear regressions. No 2B (32B). Ahmed. 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. desires. BMOT has a negative impact.05 level (2-tailed). SFER.009 0. M.203 0. The above given tables show that the critical driver and BMOT prob values are <0.352 -0. Therefore.

654 F 5. SFER. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. Unfavourable Activities. Predictors: (Constant). Predictors: (Constant). Critical Drivers.809 0. SFER.R.419 0. Desires. BMOT. M. core activities.000b 4. Critical Drivers. Mirza 771 ISSN 1648 . Predictors: (Constant).628 9. BMOT. Source: created by authors. Disadvantages Outnumber Advantages at Employment Level. g.404 0. Critical Drivers. Critical Drivers.465 0.791 0.850 Sig.000e 7. Unfavourable Activities. BMOT. Predictors: (Constant).427 0. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. In the backward multiple linear regression.R. core activities. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing.688a 0.000h a. Critical Drivers. the analysis of variance (ANOVA) represents that the model with the selected variable is best fit or not (Table 7). Disadvantages Outnumber Advantages at Employment Level.682d 0. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. Critical Drivers.000f 9. Critical Drivers. SFER. Error of the Estimate 0. g. c.369 0. b. BMOT. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. Critical Drivers.460 0.921 0. SFER. Critical Drivers h. 2014 . Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing.426 0. 0. Source: created by authors. Desires. Dependent Variable: Outsourcing is Leverage.793 0.809 0. core activities. core activities.424 Adjusted R Square 0. Desires. Ahmed.623 11. BMOT. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. SFER.625 15.416 0. Critical Drivers. BMOT. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing.688b 0. 13. Predictors: (Constant).474 0. d. ANOVAa : Backward Multiple Linear Regression Model 1 2 3 4 5 6 7 Sum of Squares Regression Residual Total Regression Residual Total Regression Residual Total Regression Residual Total Regression Residual Total Regression Residual Total Regression Residual Total Df 8 52 60 7 53 60 6 54 60 5 55 60 4 56 60 3 57 60 2 58 60 Mean Square 3. SFER. SFER. c. f.669f 0.063 0.361 0. Ahmad.801 a. core activities.448 0. Critical Drivers. SFER. Critical Drivers. Predictors: (Constant).421 0.000d 6. BMOT. BMOT. Critical Drivers.473 0. Desires.789 0.007 0. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing.470 0. Predictors: (Constant). Predictors: (Constant). Desires. Predictors: (Constant). b.824 0. Desires. d.686c 0.678e 0. Disadvantages Outnumber Advantages at Employment Level. BMOT. Predictors: (Constant).634 7.412 0. Vveinhardt.560 0.000c 5. Predictors: (Constant). Desires. Predictors: (Constant).993 0.698 0. TRANSFORMATIONS IN BUSINESS & ECONOMICS. Model summary: Backward Multiple Linear Regression Model 1 2 3 4 5 6 7 R 0. Critical Drivers.801 0. BMOT. J.642 6. Desires. N.393 0. Desires. core activities.641 21.796 0.648 0.404 Std. Disadvantages Outnumber Advantages at Employment Level. BMOT. BMOT. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. BMOT. Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. f.000g 13. Desires. e.651g R Square 0. Vol. Predictors: (Constant). Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing. BMOT. e.4460 Implementation of IT and Innovations: Implications for Business Table 6. Predictors: (Constant). No 2B (32B). Table 7.

284 -0.143 0.215 0.726 0.223 0.394 0. The above given table shows that each variable Fstatistics > 2 and the prob value are less than 0. the BMOT decreases by 0.007 Std.049 0.047 indicating the positive impact. 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. N.032 0.167 -0.05.261 2.151 -1.054 0.008 0.020 -0. Therefore.023 0. each variable has been tested fit or not the outsourcing the best.069 -0. Ahmed. 2014 .184 0.129 -0.068 -0.869 0. As it increases by 1 unit.797 1.168 0.577 -0.628 -0.596 -0. Backward Multiple Linear Regression Model 1 2 3 (Constant) Critical Drivers Core activities BMOT Desires SFER Unfavourable Activities Disadvantages Outnumber Advantages at Employment Level Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing (Constant) Critical Drivers Core activities BMOT Desires SFER Disadvantages Outnumber Advantages at Employment Level Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing (Constant) Critical Drivers Core activities BMOT Desires Unstandardized Coefficients Standardized Coefficients Beta t Sig.064 -0.056 0.015 2. M.933 and the prob value is 0.062 -0.141 5.275 0.074 1. Similarly in all the backward steps as they were taken by the model.R.091 2. The Coefficients represent the model by the selected variables that are statistically significant or not in the backward multiple linear regression (Table 8).301 0.645 -0.343 0.462 0.775 -0. J.367 Source: created by authors.563 0.271 0.673 -0.R.159 -0.934 -0.349 0.163 -0.101 0.556 0.054 -0.649 -0. Ahmad.103 -0. 13.696 -0.847 0. it has been accepted that there is no impact of these TRANSFORMATIONS IN BUSINESS & ECONOMICS.176 0.169 5.910 0.729 -0.065 0.000 0.894 B 5.389 0.001 0.279 -0.278 -0.009 0.258 0.077 -0.561 0.000 0.226 1.147 0.4460 Implementation of IT and Innovations: Implications for Business In Table 7.951 -0.304 0.05.496 0.155 -1. after applying backward multiple linear regression.296 0. 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 <0.134 0.063 0. Therefore. If critical drivers increase by 1 unit.009.090 0. No 2B (32B).933 -0.359 6. Mirza 772 ISSN 1648 .070 -0.047 -0.593 -0. while the BMOT has a negative effect.534 0. Table 8.583 -2.099 0.401 0.227 0.346 0.013 0.095 3.209 5.248 0.098 -0. Vveinhardt.215 1. Error 2. 0. the outsourcing increases by 1.578 5.010 0.000 0. Vol.005. 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.575 -2. therefore the F-stats and Prob value are statistically significant and the predictors also separately explain Y significantly.539 0.618 -0.953 -0. Coefficientsa : a.741 -2.567 0.132 -0.

001 0.003 The priority of this research to examine the relationship between outsourcing.112 3.R. b. Coefficients . Vol.985 -0.314 t Sig.142 0.402 -0.002 -.377 6.119 4. core activities and benefits met by outsourcing in telecommunication has no impact on Outsourcing. Disadvantages are more compared to advantages at the employment level. 13.162 0.966 1.824 -0. better result by strategic planning.573 0. -0.149 -1.216 -3.053 0. Ahmed.352 0. No 2B (32B).000 0.461 0.963 -0.230 0.595 3.232 -0.254 1.160 -1. J.000 0. -3.000 0. Error -1.845 0.693 0.002 0. and social. Backward Multiple Linear Regression Model 3 SFER Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing (Constant) Critical Drivers BMOT Desires 4 SFER Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing (Constant) Critical Drivers BMOT Desires 5 Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing (Constant) Critical Drivers BMOT 6 Gain Better Results Using Strategic Framework for Planning and Managing IT Outsourcing (Constant) 7 Critical Drivers Source: created by authors.095 -0.164 0.097 -0.298 Standardized Coefficients Beta -0.721 0.154 -1.163 0.143 0. Unstandardized Coefficients B Std.121 3. M.992 -0. TRANSFORMATIONS IN BUSINESS & ECONOMICS.331 0.001 0.611 -0.536 0.247 0.096 -0.002 5.R.616 -0. Unstandardized Coefficients B Std. N.335 Standardized Coefficients Beta -0.386 0.152 0.280 6.4460 Implementation of IT and Innovations: Implications for Business variables on outsourcing of telecommunication.294 -0.267 1.236 0.046 -2.158 -1.318 3.000 -0. risks reduction related to outsourcing as well as their impact on outsourcing on telecommunication business by applying multiple linear regression.583 0.210 1.054 -2.753 0.095 -0.065 1.000 Table 10.341 0.556 0.915 -1.004 0.429 6.073 3.150 5.939 -0. the BMOT was the only taken but having the same behaviour of a negative impact.014 -1. Table 9. Desire benefits consumers receive.218 0. Vveinhardt.146 0. critical drivers. Error -0.097 -0.106 0.165 0.952 0. financial and ethical responsibilities.241 0.130 4. Ahmad.338 0.150 0. as shown in Step 7 (Table 10). Coefficientsa.005 0.625 -0. Mirza 773 ISSN 1648 .274 -0. As in the last backward step.287 -0.Backward MLR for BMOT Model 7 BMOT Source: created by authors.252 0.007 0.054 1.474 -0.292 0.088 t Sig. 2014 .

different reasons have been examined as correlation and multiple linear regression methodology has been applied to check how the reasons correlate. No 2B (32B).556 0. Better result by strategic planning has no impact on outsourcing. Critical drivers have a positive impact taking positive beta (β). Assessment & Summary of Hypotheses H1 H2 H3 H4 H5 H6 H7 H8 Hypotheses Critical Drivers have no impact on outsourcing. The opportunities have increased in the global businesses such as telecommunication. This research paper on the outsourcing has considered the telecommunication business in Pakistan. Benefits desired by consumers have no impact of outsourcing. innovations and globalization growth opened new ways of outsourcing. 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. Vveinhardt. Financial and Ethical responsibilities fulfilment has no impact on outsourcing. Core Activities have no impact on outsourcing.R.4460 Implementation of IT and Innovations: Implications for Business It has been found. Notwithstanding. Therefore. The correct methodological access allowed obtaining reliable results based on calculations.563 0. H6. The telecommunication businesses need to carefully consider factors related to the outsourcing. Social. H5. 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. the SPSS software has been used to analyze the dataset and make the results of methodology. The further research may lay other factors for the outsourcing in Pakistan. Therefore.05. Benefits met by outsourcing in telecommunication have no impact on outsourcing. both factors are important for telecommunication outsourcing in Pakistan. Conclusions and Recommendations Conclusions: The research done in different countries cause no doubt about the impact of dynamic global markets.000 0. In this regard. transportation. Table 11. critical drivers and BMOT are statistically significant.596 0. Disadvantages outnumber advantages to the employment level has no impact on outsourcing. Ahmed.05 and both the factors have significant impact on the telecommunication outsourcing in Pakistan while the hypotheses (H2. H4. 2014 . level of liberalism of economy and ongoing social changes affecting society values on the processes of outsourcing.401 0. The regression analysis. 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 and they have no impact on the telecommunication outsourcing. Ahmad. it might be useful to telecommunication business leaders from different countries. N. In this respect. J.169 0.010 0. communications. information systems. The competitive advantages related to inventions. etc. 13. The undertaken analysis of factor hypotheses with their coefficient significant and insignificant prob values (Table 11). TRANSFORMATIONS IN BUSINESS & ECONOMICS. H7 and H8) have been accepted as their p-values are >0. while BMOT of negative beta (β) have a negative impact. M. P-value 0. Mirza 774 ISSN 1648 . Vol. Risks reduction related to outsourcing has no impact on outsourcing. Hypotheses assessment summary.R.894 The hypotheses of H1 and H3 have been rejected as the prob values are < 0.

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13. Daugybinė regresija parodė. finansinė atsakomybė. taikytas modelis. TRANSFORMATIONS IN BUSINESS & ECONOMICS. Ahmad. vadovybės kontrolės. naujų technologijų prieinamumo. Vveinhardt. taip pat tiriamas išteklių perkėlimo poveikis verslo vykdymo kaštams Pakistane. atskleidžiančios telekomunikacijų verslo specifiką tiek naudos darbuotojams. REIKŠMINIAI ŽODŽIAI: telekomunikacijų pramonė. etinė. tiriamas išteklių perkėlimo dominavimas Pakistano telekomunikacijų pramonėje. Analizuotos 42 skirtingos priežastys. lankstumo. kapitalo išlaidų optimizavimo. No 2B (32B). įgyja naujų galimybių papildyti esamą know-how. kad tik kritiniai veiksniai ir išteklių perkėlimo nauda telekomunikacijoje yra statistiškai reikšmingi. Atliktas aprašomosios ir inferencinės statistikos testas. atrinktas platus verslo rangos priežasčių spektras.R. pasitelktas uždaro tipo klausimynas. Nustatyta. tiek besivystančioms šalims. J. Siekiant tikslo. Mujeeb Mirza SANTRAUKA Pasaulinės telekomunikacijų industrijos tendencijos rodo orientavimąsi į bendrųjų išlaidų mažinimą ir didėjantį poreikį būti konkurencingesnėmis tarptautinėse rinkose. kritiniai veiksniai.R. taip pat jo poveikį verslo išlaidoms telekomunikacijų versle Pakistane. Analizuotos priežastys koreliuoja arba itin pozityviai arba negatyviai. tai traktuojama kaip verslo rizika ir kiti trūkumai. tiek naudos klientams atžvilgiu. ir daro teigiamą poveikį telekomunikacijų verslui Pakistane. Konkurenciniai pranašumai. Šiame kontekste įvertinamos verslo galimybės pagerinti organizacijų veiklos rezultatus nekuriant nepageidaujamo rizikos laipsnio ir išlaikant aukštą klientų pasitenkinimo lygį. daugybinės linijinės regresijos. jis analizuojamas įvairių kritinių veiksnių požiūriu. verslo ranga. o ištyrus išteklių perkėlimo egzistavimą. kuris buvo siūlomas ir anksčiau atliktuose panašaus pobūdžio tyrimuose. Taikyta daugybinės tiesinės regresijos metodika. Tyrimu siekiama išanalizuoti vyraujantį išteklių perkėlimo reiškinį. Mirza 777 ISSN 1648 . finansinę ir etinę atsakomybę bei mažinant su ranga susijusią riziką. susiję su išradimais. atvėrė kelius augti verslo rangai. kad su darbuotojais susijusioje sferoje trūkumų yra daugiau nei privalumų. socialinę. inovacijomis ir globalizacijos spartėjimu. Jolita Vveinhardt. Telekomunikacijos verslo srityje naudojant verslo rangą rekomenduojama atkreipti dėmesį į tokius faktorius. kad besivystančių šalių telekomunikacijų srityje verslo rangos tendencijos nėra itin plačiai nagrinėtos. Nawaz Ahmad. Tai aktualu tiek ekonomiškai išsivysčiusioms. kaip socialinė.4460 Implementation of IT and Innovations: Implications for Business VERSLO RANGA TELEKOMUNIKACIJOS PRAMONĖJE: PAKISTANO ATVEJIS Rizwan Raheem Ahmed. Analizuojant rangos fenomeną ir jo poveikį Pakistano telekomunikacijos srityje veikiančio verslo kaštams. Jie susideda iš kasdienių išlaidų mažinimo. juolab. Išanalizavus mokslinę literatūrą. perskirstyti ir sutelkti dėmesį į išteklius. N. 2014 . Ahmed. apklaustas 261 respondentas iš telekomunikacijų srities vadovaujančiojo personalo. M. geresni rezultatai gaunami taikant strateginį planavimą. Vol. koreliacija.

4460 Implementation of IT and Innovations: Implications for Business 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. 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 TRANSFORMATIONS IN BUSINESS & ECONOMICS. J. No 2B (32B).R. Vveinhardt.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 Agree Do not Know Disagree Strongly Disagree = = = = = 5 4 3 2 1 Questions 5 4 3 2 1 Q8: Given the market environment. Vol. Ahmad. M. N. 2014 . Ahmed. 13.R. Mirza 778 ISSN 1648 .

4460 Implementation of IT and Innovations: Implications for Business 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.R. f=Financial.R. 2014 . J. Vol. s= Social *1Reduce Operational Expenses. Mirza 779 ISSN 1648 . Vveinhardt. 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. No 2B (32B). Ahmed. 13. Ahmad. M. 2Optimize Capital Expenses TRANSFORMATIONS IN BUSINESS & ECONOMICS. N.