A

Project Report

On

‘World Trade Organization (WTO)’

BY
ANUSUYA CHATTERJEE
Class: TY BBA - IB

Under the guidance of

DR. MANGESH BHOPLE
In Partial Fulfillment of
Bachelor Degree in Business Administration (International Business)

Submitted To

Alandi (D), Pune

Affiliated to

Savitribai Phule Pune University

Academic Year 2021-2022

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 DECLARATION

I, hereby declare that the project report on “World Trade Organization (WTO)” is
written and submitted by me to MAEER’S MIT Arts, Commerce and Science College, Alandi
(D), Pune, towards the partial fulfillment for the study of BBA (IB) in year 2021-2022 is original
work done by me, which is based on Secondary data .The contents provided are true to the best
of my knowledge and belief.

I further declare that, this project report has not been submitted to any other College or
University for any other degree or course earlier.

Place: Alandi (D), Pune

Date:01.01.2022

Anusuya Chatterjee
TYBBA (IB)

CERTIFICATE
2
This is to certify that, the project report on ‘World Trade Organization (WTO)’ which is
submitted by Ms. Anusuya Chatterjee, Class: TYBBA (IB) in partial fulfillment of Bachelor
of Business Administration (International Business) has satisfactorily completed the project work
under our guidance and supervision.
We wish our best wishes for her future endeavor.

DR. MANGESH BHOPLE DR. AMOL MANE DR. B.B. WAPHAR

Project Guide Head of the Dept. Principal
BBA&BBA IB Dept.

ACKNOWLEDGEMENT

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I take this opportunity to express my sincere gratitude to everyone who has directly or indirectly
helped me in completing the project successfully.

I am very much thankful to Prof. Dr. B.B. Waphare, Principal of MIT ACSC, Alandi for his
continuous support and help.

I express my deep sense of gratitude to Dr. Mangesh Bhople as project guide for his constant
encouragement throughout this project report.

I take this opportunity to thank my family members and friends without their cooperation it
would not have been possible to complete this project.

Date: 01.01.2022 Anusuya Chatterjee

TY BBA(IB)

INDEX

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Chapter No. Name Of The Chapter Page no.

I Introduction 6-7

II Objective of the study 8

III Importance Of The Study 9

IV Limitations Of The Study 12

V Literature Review 13

VI Research Methodology

VII Organizational profile 25

VIII Conceptual framework

IX Result and Discussion 32-34

X Findings 35

XI Suggestions 36

XII Conclusion 37

XIII References 38

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 Chapter I
Introduction and Research Methodology

1.1 Introduction

Outsourcing is the business practice of hiring a party outside a company to perform services and
create goods that traditionally were performed in-house by the company's own employees and
staff. Outsourcing is a practice usually undertaken by companies as a cost-cutting measure. As
such, it can affect a wide range of jobs, ranging from customer support to manufacturing to the
back office.

Outsourcing was first recognized as a business strategy in 1989 and became an integral part of
business economics throughout the 1990s. The practice of outsourcing is subject to considerable
controversy in many countries. Those opposed argue that it has caused the loss of domestic jobs,
particularly in the manufacturing sector. Supporters say it creates an incentive for businesses and
companies to allocate resources where they are most effective, and that outsourcing helps
maintain the nature of free-market economies on a global scale.
Key takeaways
Companies use outsourcing to cut labor costs, including salaries for its personnel, overhead,
equipment and technology.
Outsourcing is also used by companies to dial down and focus on the core aspects of the
business, spinning off the less critical operations to outside organizations.
On the downside, communication between the company and outside providers can be hard, and
security threats can amp up when multiple parties can access sensitive data.
Examples of Outsourcing
Outsourcing's biggest advantages are time and cost savings. A manufacturer of personal
computers might buy internal components for its machines from other companies to save on
production costs. A law firm might store and back up its files using a cloud-computing service
provider, thus giving it access to digital technology without investing large amounts of money to
actually own the technology.

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A small company may decide to outsource bookkeeping duties to an accounting firm, as doing so
may be cheaper than retaining an in-house accountant. Other companies find outsourcing the
functions of human resource departments, such as payroll and health insurance, as beneficial.
When used properly, outsourcing is an effective strategy to reduce expenses, and can even
provide a business with a competitive advantage over rivals.

Types of outsourcing

1. Offshore Outsourcing (getting service in other country, like India by a Spain Company)

2. Business Process Outsourcing (outsourcing of entire process like tax management, insurance
claims, human resources and contact centers).

3. Value-added Outsourcing (Two partners with complementary strengths combine to achieve

what is impossible alone)

4. Equity Holding (Client and supplier buying each other’s equity or both creating a new entity)

5. Multi-sourcing (One client uses a single contract for several suppliers)

Outsourcing Models

1. Innovation Outsourcing

When offshore outsourcing knowledge work, firms heavily rely on the availability of technical
personnel at offshore locations. One of the challenges in off shoring engineering innovation is a
reduction in quality.

2. Co-sourcing

Co-sourcing is a hybrid of internal staff supplemented by an external service provider. Co-

sourcing can minimize sourcing risks, increase transparency, clarity and lend toward better
control than fully outsourced.

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1.2 Objectives of Study

i. To understand the concept of outsourcing.

ii. To get to know the process of outsourcing of goods of “Zirkel Infraca Pvt Ltd.”.
iii. To know advantages and disadvantages of outsourcing.
iv. To know the impact of outsourcing on “Zirkel Infraca Pvt Ltd.”.
v. Understanding the impact of outsourcing on economic growth of India.

There are, of course, a wide variety of reasons why companies are outsourcing their logistics
activities. The benefits include a reduction in fixed assets, the ability to concentrate on core
competence, leveraging greater supply chain expertise, and gaining economic return through the
purchasing power of logistics companies. However, it is critical that both parties fully understand
the relationship that is being entered into and the relevant commitment of each party.
There are effectively three levels of outsourcing:

 Transactional outsourcing

This is based on individual transactions or possibly specific trade lanes, with no long term
contracts and no real integration between the logistics company and the outsourcing company.

 Tactical outsourcing

This is a longer term relationship based on a contract and with some integration of systems to
facilitate an exchange of information in order to create some visibility within the supply chain.

 Strategic outsourcing

This is based on long term relationships with real cooperation and collaboration whereby the
logistics company becomes a true partner with open sharing of information focused on achieving
the most efficient and effective supply chain.

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1.3 Scope of Study

The scope of the study done by researcher is as follows:

i. The study explains how jobs are impacted by outsourcing in countries.
ii. How outsourcing has an effect on economy of country.
iii. The study helps in understanding how people in under-developed countries would have
no jobs.
iv. The study shows how outsourcing involves exploitation of workers in the countries to
which job is outsourced.
v. The study explain why a company outsourced their product .

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1.4 Significance of Study

Outsourcing is one of the most important and controversial aspects of business today and
therefore is a logical subject of study.Most people on the planet are affected by outsourcing to
one degree or another. Because outsourcing affects so many people, outsourcing is often highly
controversial.  Such controversy is another reason justifying the study of outsourcing.

i. The study may help the reader to decide whether to consider doing outsourcing for
his/her organization, firm, or a manufacturing company.
ii. The study may help other students find some valuable information while researching
about outsourcing.
iii. The study may also help random readers learn about outsourcing and distinguish whether
or not to buy outsourced products or not.

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1.5 Research Methodology

The purpose of the study is to analyze and process the concept of outsourcing and how it works.
This study followed content analyses and in depth-interview method based on only one
company. This study is based on qualitative data rather than quantitative data and also it is based
more on Secondary research as compared to Primary data. The study is done to show how
“COMPANY” does outsourcing of its goods and also how outsourcing affects the growth of
Indian economy.

i. Primary Research:
The researcher interviewed “Zirkel Infraca Pvt Ltd.” and the primary research data of the
study purely comprises of this in-depth interview taken by the researcher. The analyses
done by the researcher mainly consists of the answers given to the questions asked during
the interview.

ii. Secondary Research:

This research includes study using articles, research papers by other authors and
documents using materials available online and also content analyses of primary data.
Secondary research materials include:
- Books
- Research papers available on Google
- Articles available on online

Methodology
Case studies are widely used in organizational and across the social sciences, for example, in
sociology, organizational psychology, employment relations, political science. There are some
suggestions that the case study method is increasingly being used (for example Yin (1994),
Robson (2002) and a number of publications examine the approach (for example Yin (1994),
Stake (1995), Eisenhardt (1989), Abrahamson (1992).

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1.6 Limitations of Study

The limitations that the researcher faced during the study were:
i. Major limitation of this research is that it is based on secondary data.
ii. The data collected is only based on 1 company’s outsourcing data.
iii. Survey was limited to only one company due to the pandemic caused by the Corona
virus.
iv. The researcher has only focused on Outsourcing of Goods in this project however; the
future research can be carried out on the political issues of outsourcing and government
regulations to discourage offshore outsourcing. What will be the consequences for low
wage countries if the client’s government regulates not to go offshore?
As all research works have some limitations, likewise, this research is also not without
limitations. One of the major limitations of this research is that it is based on secondary data.
Theoretical discussion and present researcher focused on reasons to outsource, winners and
losers and growth in future. Until recent many companies outsourced to cut cost. However, the
future research can be carried out on the political issues of outsourcing and government
regulations to discourage offshore outsourcing. What will be the consequences for low wage
countries if the client’s government regulates not to go offshore? And also it will be worth
conducting the research on influence of clients marketing strategies on vendors business.
Security concerns in outsourcing and off shoring services is another interesting area which need
to be explored more. Along with other major issues tax and auditing of outsourced of goods and
manufacturing.

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1.7 Chapter scheme

Chapter I Introduction and Research Methodology

Chapter II Literature Review
Chapter III Company Profile
Chapter IV Survey Analysis and Interpretation
Chapter V Findings
Chapter VI Suggestions and Conclusion
Chapter VII References
Chapter VIII Annexure

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 Chapter 2
Literature Review

2.1 Theoretical Background

Meaning :To obtain goods or a services by contract from an outside supplier.

Defination : Outsourcing occurs when a company retains another business to perform some of
its work activities. These companies are usually located in foreign countries with lower labor
costs and a less strict regulatory environment.

Concept :Outsourcing is the business practice of hiring a party outside a company to perform
services and create goods that traditionally were performed in house by the company’s own
employees and staff. Outsourcing is a practice usually undertaken by companies as a cost
cutting measure.

The first myth about outsourcing is that it’s new. Actually, the term dates to the 1970s, when
manufacturing companies seeking efficiency began hiring outside firms to manage less than
essential processes. Outsourcing worked. Today many manufacturers outsource 70% to 80% of
the content of their finished products.

Rapidly changing and increasingly complex business issues are creating key shift in
organizations and the manner in which they do business. One fact is still certain every
organization has its goals also, the success of an organization is measured by the level at which it
attains its goals.

In order to achieve its set goals in the presence of technological advancement, sophistication of
business processes, knowledge explosion and need for constant growth, an organization looks
out for strategies to enhance performance.

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It therefore reflects on the capabilities of its workers (staff), its technological knowhow, business
processes and so on, and answers the question of whether it can achieve its goals with what it
already has on ground or look out for ways to complement. In struggling to meet the demands of
customers and shareholders, an organization may look out for ways that it has a comparative
advantage. It therefore focuses on core competences and seeks to reduce operation cost which
presents outsourcing as the right strategy. Outsourcing avails organizations the opportunity to
concentrate their core competencies on definable preeminence business area and provides a
unique value for customers.

Outsourcing is one management tool that has gained relevance among managers in addressing
today’s business dynamics. It entails contracting out of a business function. It is the replacing of
in-house provided activities by subcontracting it out to external agents.

Several organizations have embarked on outsourcing strategies over the years but many still
suffer in terms of their goal achievement; some have experienced low productivity both in terms
of quality and quantity, their profitability has not been stable, and their capacities are grossly
underutilized.
Theories of Outsourcing

i. Theory of Core competencies

Core competencies theory postulated that; the core activities should remain in house.The concept
of core competencies has been developed on the basis of the resource-based theory. The
researchers Prahalad and Hamel in Harvard Business Review defined the core competencies as
the collective learning in the organization, especially how to coordinate diverse production skills
and integrate multiple stream technologies.The main idea of this theory is enhancing the core
competence of the company in order to develop sustainable competitive advantage, which
outsourcing is positioned to achieve. The resource-based view suggests that, valuable firm
resources (comprising tangible and intangible elements) are usually scarce, imperfectly imitable,
and lacking in direct substitutes; It is about producing the most value from one’s existing
capabilities and resources by combining these with others’ sources of advantage and, in this,
ensuring complementarities is paramount.

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A core competency can take various forms, including technical/subject matter know-how, a
reliable process and/or close relationships with customers and suppliers (Jae, et al. 2006). It may
also include product development or culture, such as employee dedication, best human resource
management (HRM), good market coverage etc. Core competencies are particular strengths
relative to other organizations in the industry which provide the fundamental basis for the
provision of added value.

ii. Transaction cost Theory

The Transaction Cost theory has traditionally been the most widely used outsourcing theory. It is
considered that this theory provides the best decision-making tools in order to assist
organizations in deciding which of their operations should be outsourced and, thereafter, to
prepare themselves in order to implement the necessary organizational changes arising from
outsourcing.
The characteristics of this model allow for its implementation both at the relationship
management phase and at the reconsideration phase. Another extremely useful feature of the
TCE theory is that it can be used for the analysis and selection of outsourcing contracts, which
are often of great complexity.
This theory holds an assumption that business outsourcing is implemented in order to lower the
transaction costs. Transaction Cost Analysis (TCA) is another widely used outsourcing based
theoretical perspective especially in supply chain management.The approach seeks to identify the
environmental factors that together with a set of related human factors explain how companies
can organize transactions to reduce the costs associated with these transactions.
This theory asserts that, an organization may outsource even when it has the wherewithal to
execute the activity itself if and only if the sum cost carrying out the activity by an outside
vendor including contract processing cost is lower than the cost of carrying out the activity in
house. This theory is quite relevant in explaining the outsourcing of primary activities which are
seen as being part of the organizations primary (core) operation as captured in their mission
statement.

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 iii. Resource Based Theory
The main premise of the Resource-based Theory is that resources and capabilities can differ
significantly among organizations and that these differences remain stable. When the resources
and capabilities of an enterprise are mixed and used in an appropriate manner, they may create a
competitive advantage for the enterprise. This theory applies mainly to the Preparation phase of
the process in order to identify the operations that must be outsourced, as well as to the Vendor
Selection phase, allowing for the selection of the vendor with the most appropriate resources.
The theory has also been used to explain the decisions made by the organization during the
Relationship Management and Reconsideration phases.

iv. Relational Theory

These theories are used to explain the reason why organizations enter into closer relationship
with their service providers. They tried to understand the relationship as dynamic processes
through specific sequential interactions in which two participants carry out activities toward one
another and exchange valuable resources. Theories in the social aspect assume processes
evolving over time as the actors mutually and sequentially demonstrate their trustworthiness
whereas the exchange activities by the organizations in economic perspective are enforceable.
Thus, the social theories are mainly used to explain partnership relationship between the clients
and the service providers.
Some organizations outsource their services to bigger organizations to attain recognition and or
establish a relationship with a hope of other benefits rather than cost minimization such benefits
may still lead to profit in later life of the business. Also, some organizations outsource their
services just for patronage sake. Patronage here refers to social relationship without looking up
for profit.
The Relational Theory provides explanations on how enterprises may acquire and maintain a
competitive advantage with regard to their relationships with other organizations. It has been
used to study the phases of transition, relationship management and reconsideration. Therefore,
the Relational Theory is the only approach that may be applied to the investigation of all phases
of the outsourcing process. The conclusion that the benefits of the outsourcing process are
determined by the quality of the relationship at its establishment and by the care given by
contracting parties to the development of the relationship.

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Social Impact of Outsourcing in India

 Job Security in India

Outsourcing leads question of job security in the society. For example, observing its impact on
American society, where two issues found: The first issue is with regards to the question of
security of their jobs which has a great impact on social structure. Meanwhile it is stated that the
Americans are against outsourcing, because most of their employment opportunities are
outsourced to the developing nations which has shown its impact on the last Presidential
election. Medium and Large-scale companies in our India, they are not ready to do all their
business support functions such as Accounting, human resource functions, administration,
transportation, security, housekeeping, etc., Even though, they are claiming that they would like
to focus on core activities of business, so they outsource non-core activities, however, the hidden
agenda is minimization of cost and downsizing of workforce to the minimum possible extent.
Even in manufacturing industries, the proportion of permanent and temporary work force
involved in core activities like manufacturing is considerably low, because they prefer to take
temporary workforce from manpower contracting agencies. The temporary employees can be
availed based on the needs of the organization. It is not a good sign to the people in the society,
because the absence of job security is having direct impact on their income level and other
benefits from the companies. The temporary employees are entitled to receive comparatively less
salary while compared to the salary of permanent employees. The term outsourcing is often used
interchangeably — and incorrectly — with offshoring, usually by those in a heated debate. But
off shoring (or, more accurately, offshore outsourcing) is a subset of outsourcing wherein a
company outsources services to a third party in a country other than the one in which the client
company is based, typically to take advantage of lower labor costs. This subject continues to be
charged politically because unlike domestic outsourcing, in which employees often have the
opportunity to keep their jobs and transfer to the outsourcer, offshore outsourcing is more likely
to result in layoffs.

Estimates of jobs displaced or jobs created due to offshoring tend to vary widely due to lack of
reliable data, which makes it challenging to assess the net effect on IT jobs. In some cases, global

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companies set up their own captive offshore IT service centers to to reduce costs or access skills
that may not result in net job loss but will shift jobs to overseas locations.

Some roles typically offshored include software development, application support and
management, maintenance, testing, help desk/technical support, database development or
management, and infrastructure support.

 Economic Imbalance in Society

In general, the employees working in outsourced projects / companies (IT / BPO) are getting
higher salary and speedy economic growth, whereas the people working in other sectors and
temporary workers or workers employed in contracting agencies are getting very low salary
compared to them, which leads to social imbalance among the citizens of the country. The huge
gap among the purchasing power of the people creates jealousness and it may leads to offence
and crime against the IT/ BPO employees. The unemployment and poor rewards in the host
country, which does offshore outsourcing most of their jobs also creates lot of issues in family of
the workers, and society in their country.
India’s supremacy on outsourcing is now being gradually wrinkled by other countries which
have young and educated youth which form the low-cost workforces for countries like
Philippines. Moreover, nations like Latin America and Eastern Europe have talent population
with multilingual skills which has formed as a strong competitor for country like India. Overall,
today being a developing country through outsourcing we have taken the jobs of people from
developed countries, gradually in the coming decades our jobs may be taken by citizens of other
developing or under- developing countries, then we need to either accept the huge pay cut or lose
the job.

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Risk in Outsourcing

 Possibility of Weak Management

If an IT service scores low on the operational performance dimension, a company will clearly be
tempted to outsource it to a third party. If cost or quality problems are due to inadequate
economies of scale, outsourcing can make sense, although there may be internal solutions
available through centralized rationalization. Collaborative joint information processing ventures
with other similar companies are another option.
In other words, to reduce initial risks in outsourcing, a company must be capable of managing
the IT service first. Vendors may pull out at the first stage when they learn how weak the
customer’s IT management is; they recognize that weak management is not an opportunity for
profit taking but a recipe for conflict and dissatisfaction.

 Business Uncertainty
If a firm decides to outsource IT services because of costs or focus, it is assuming that its future
direction and needs are clear. The IT marketplace, of course, may offer more variety in services
and suppliers than any one corporation can. Thus, unknown future business needs may, in
principle, be satisfied when they arise.

 Hidden Costs
When cost reduction is the objective of outsourcing, there is typically a promise of early cash
flow benefits and long-term cost savings. Certainly, a company can compare vendor costs with
current costs and build technology and learning curves into future cost schedules. Conversely, it
may not know about future possible cost savings or foresee technological discontinuities. These
issues are probably matter of judgment. Companies underestimate the setup costs, including
redeployment costs, relocation costs, and longer-than-expected handoff or parallel running costs
or companies may underestimate management costs.

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Outsourcing and Organizational Performance
Organizational performance is measured in different ways depending on the
intent.Organizational Performance here is seen as the output of the organization measured in
terms of profitability. Profitability is measured in terms of Cost savings, focus on core business
(thus increasing efficiency), Reduction in money spent on fixed assets (cost restructuring),
Reduction in tax paid (tax benefit) and Increase turnover (Sales).Outsourcing one’s business
processes can improve one’s competitive edge.The reason behind this is that outsourcing reduces
business costs.
By minimizing costs, organizations can achieve their economic related goals, and this enhances
their organizational performance. Consequently, the extra amount that would have been passed
to the consumers in the form of higher prices for the goods and services now becomes irrelevant
as consumers pay less for their commodities. This allows businesses to compete favorably based
on price thus giving them a competitive edge.
Organizations that do everything on their own may be exposed to greater levels of risk than those
who outsource their business functions.Outsourcing is good for business because there are
certain situations that can be avoided through it. For instance, organizations that perform all their
business functions may have to spend huge amounts on replacing obsolete technology. However,
when that business function is outsourced, then organizations will not even feel the pinch.
Companies are increasingly viewing outsourcing strategies as a means of reducing costs,
increasing quality, and enhancing a firm’s overall competitive position.

Achieving success or failure of outsourcing strategies

Organizations consider their outsourcing projects successful when the benefits generated by the
outsourcing strategies are greater than the costs of developing the required resources and
capabilities through internal development or acquisitions. Meanwhile, organizations consider
their outsourcing projects unsuccessful or as a failure, when the costs of managing the links
between outsourcing partners were greater than the benefits generated by the outsourcing
program.Successful firms identified their clear objectives and expectations of outsourcing
activities as the most useful and contributing factors to their outsourcing effort. Outsourcing

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must be done carefully, systematically, and with explicit goals and expectations. Sensible
reasons to consider outsourcing include both strategic and tactical concerns on both a department
and organizational level. A good choice of outsourcing partners was the most useful and
contributing factor among successful organizations. Outsourcing partners should be selected
based on their expertise in the operation being outsourced and their cultural fit with the
organization. Another factor is providing adequate training skills needed to manage outsourcing
activities and to negotiate a sound contract.Developing a comprehensive plan outlining detailed
expectations, requirements, and expected benefits during all phases of outsourcing activities may
be the key to successful sourcing efforts.
Effective communication among cross-functional areas reduces the negative effects of
outsourcing projects on the morale and performance of the remaining employees. Management
must step in and rebuild trust among the workers, and jobs may need to be evaluated and
expanded or changed to fit the new organization.Outsourcing decisions may affect company’s
cost structures, long-term competitive situation and can also alter the nature of risks that the
company must manage. Hence, it is crucial for management to understand and have a clear
conceptual framework of their outsourcing decision.

Cultural Problems
Some million dollars contract have been failed because of the cultural issues when the
management deliberately kept quiet on the ongoing problems or did not even dare to speak about
the problems and the cultural differences between Asia and the West could bear severe
consequences.
Cultural differences have been heated debate in the business world; the literature is full of cross
cultural management issues and strategic management decisions. Culture is described as
collective programming of mind and he identifies five cultural dimensions which are highly
welcomed in the business world. People from different parts of the world come across to work
together as are salt of offshore outsourcing and bring valuable individual and cultural differences
into management scenario.
Language, social and cultural values, religion, beliefs, work ethics, social and political system
are challengeable scenarios in offshore outsourcing strategies. Language skills, however, can be

22
learnt and improved over the time but the context in which particular words and phrases are used
may be misleading or accent can be misunderstood. Offshore outsourcing refers to working with
perhaps an entirely different workforce with traditional cultural and moral values, the ways and
means of communication and organizational structure based on typical cultural values which can
possibly create a host of problems for the client as far as communication and controlling and
monitoring is concerned. Cultural problems not only occurfrom the different nationalities, but the
company structure is also significant.
It as an Enabler of Outsourcing Overwhelming demand of global talent pool is an edge for global
competition for the firms making timely decisions is not a driver to offshore neither it will keep
thecompanies onshore but merely an enabler of the strategy and process (Aird and Sappenfield,
2009). The truths of outsourcing, however, are for instance global talent, available services at
lower cost, tax incentives and the company’s strategy to focus on the core competencies of the
business.

Multi Sourcing
Multi-sourcing is relatively a recent trend to diversify risk and seek more potential benefits as a
result of sourcing. A potential risk of losing a control over business in outsourcing contract can
be minimized if not diminished in a successful multi-sourcing strategy. Usually, with one
vendor, contract is lengthy and risky as well. For example failure or bankruptcy of vendor would
put client at risk. The client firm can get rid of poorly performing vendorasa result of multi-
sourcing strategy. The “multi sourcing” allows companies tobenefit from a variety of suppliers.

Cost Reduction and Economies of Scale

Economies of scale and cost reduction are among the most cited reasons to outsource. They also
agree that short term cost saving is the prime motive of most of the western companies
particularly to save IT-cost. There are number of other drivers/motivators described by
researchers button achieve operational cost efficiency is the most considered factor so far. As far
as commercial driven outsourcing is concerned; the key driver is employees related cost and the
banking industry of India has saved $80millions since 2003. The number of Fortune500 have

23
outsourced to Indian service providers for instance, Infosys, Wipro, Tata Consultancy Services
and many others.
A large number of American companies have already outsourced to India especially Information
System Outsourcing (ISO) to keep the maintenance and development cost down. According to
Anonymous (2009) 79% of the companies have benefitted from the lower cost by outsourcing to
an off shore destination.

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2.2 Literature Review

1. Laxman Zagge (2015) “Final Project on Outsourcing in India.”

2. A Jordan (2017) “project management in outsoursing.”

3.Harjeet kapoor(2018) "Knowledge Process Outsourcing & Talent Outflow-A Study of Indian
Content Developers."

4. Sumitro Mukherjee (2007)”Business Process Outsourcing and India.”: Outsourcing, Offshore-

Outsourcing and Off-shoring are used interchangeably despite important technical differences.
Outsourcing involves the transfer of organizational function to a third party; when the third party
is located in another country the term Offshore-Outsourcing should be used. Off-shoring in
contrast, represents the transfer of an organizational function to another country, regardless of
whether the work stays in the corporation or not.

5. The Future of R&D Outsourcing: Investigating development hurdles, key challenges &
strategies to optimize CRO relationships (2010) : Investigating development hurdles, key
challenges & strategies to optimize CRO relationships Published on January 2010 Report
Summary For several years, drug developers have been under intense pressure to introduce new
products in an environment of escalating R&D costs, blockbuster patent expiration and resulting
generic competition, increasingly complex science, heightened regulatory scrutiny, and other
pressures.
6. Kroes, JR, & Ghosh, S. (2010). Outsourcing congruence with competitive priorities: Impact
on supply chain and firm performance.

7. Paul C. Lynch(2005) “ outsourcing and offsourcing” : Offshoring is looked at as a version of

outsourcing that procures services or goods from suppliers or manufacturers outside of the
country.
8.Dominguez, L (2006). The managers’ step-by-step guide to outsourcing. Boston: McGraw Hill
Companies.
9. Journal of Operations Management, 28(2), 124–143. Leavy, B. (2004). Outsourcing strategies:
Opportunities and risks.

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 Chapter III
Company Profile

3.1 Name, Address And Location Of The Company

 Name: Zirkel Infraca Pvt Ltd.

 Address And Location: Gat. No. 198, Wasuli Sudumbre, Vadgaon Budruk, Pune,
Maharashtra 410501.

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 Company Details

CIN U74999PN2015FTC157225

Company Name ZIRKEL INFRACA PRIVATE LIMITED

Company Status Active

RoC RoC-Pune

Registration Number 157225

Company Category Company limited by Shares

Company Sub Category Subsidiary of Foreign Company

Class of Company Private

Date of Incorporation 13 November 2015

Age of Company 5 years, 1 month, 9 days

 Website : www.zirkelinfraca.com

 EMAIL

EXPORT -
export@zirkelinfraca.com

CUSTOMERCARE -
customercare@zirkelinfraca.com

ACCOUNTING -
accounting@zirkelinfraca.com

OPERATIONS -
operations@zirkelinfraca.com

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3.2 Company Profile

Zirkel Infraca Pvt Ltd is the evolution of the commercial operations leaded by Infraca India in
the territory since 2013.

This evolution is through the set up a factory for are thermal, industrial doors, warehousing and
processes solutions as well as the commercial development of these products in India, the Middle
East and Asia Pacific. The production plant located in Pune are is located in the geographical
axis of the company's operations, from the Middle East to Asia Pacific, in addition to the local
Indian market, pointing the management team commitment with India.

The establishment of the productive plant in India is born from the union of two visions and
capacities. On one side, Zirkel add the leadership, business development capacity, market vision,
management and knowledge. On the other side, Infraca add the expertise, the experience in the
implementation of successful production subsidiaries in emerging countries as well as the
technical and technological leadership of the project.

They have several dealers on the territory that help them to build up the better commercial
approach and service to every corner in India and the rest of Asia.

Zirkel Infraca Pvt Ltd offer products with the European quality standards from India to the whole
India and the rest of Asia. In their facilities in Pune, they manufacture industrial, refrigerating
and freezing doors, fast, indoor, clean room, specific use and its complements.

Their value proposition and business concept is to offer the highest quality at a reasonable price,
providing the right quality at the right price. Their unique design, their wide range of solutions,
the quality of their materials allows to offer the best cost-effective solutions for the industry.
They could summarize them in these four pillars:

 Highest quality standards but at reasonable price.

 Made to measure solutions for their clients.
 Exclusive design and technology.
 Wide range of their products.

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 About the company

 Zirkel Infraca Private Limited is a Private incorporated on 13 November 2015.

 It is classified as Subsidiary of Foreign Company and is registered at Registrar of
Companies, Pune.
 Its authorized share capital is Rs. 7,000,000 and its paid up capital is Rs. 6,955,550.
 Zirkel Infraca Private Limited's Annual General Meeting (AGM) was last held on 30
September 2019 and as per records from Ministry of Corporate Affairs (MCA), its
balance sheet was last filedon 31 March 2019.
 Directors of Zirkel Infraca Private Limited are PrashantArora, Moreno Rodriguez Angel
Antonio, Jesus Talavan Diaz.
Zirkel Infraca Zirkel Infraca Pvt Ltd is here to manufacture the best industrial solutions
with maximum flexibility, adequate delivery time, optimal quality/price ratio and
excellent customer and after sales service. We are bringing to India, Middle East and
Asia pacific the knowledge and technology born in Europe 40 years ago and developed
during this time with the experience and help of our customers and collaborators
worldwide. Being part of a group of companies with presence in all five continents,
counting with four production plants India, Spain, Peru, Mexico allow us to deliver the
latest technology, the highest quality at reasonable price. Manufacturing unit in India the
head of Asia business Zirkel Infraca is the evolution of the commercial operations leaded
by Infraca India in the territory since 2013. This evolution is through the set up a factory
for isothermal, industrial doors, warehousing and processes solutions as well as the
commercial development of these products in India, the Middle East and Asia Pacific.
The production plant located in Pune is the geographical axis of the company’s
operations, from the Middle East to Asia Pacific, in addition to the local Indian market,
pointing the management team commitment with India. Our production unit in India will
be the core of our expansion in whole Asia, our 40 years of experience, technology and
knowledge along with the “make in India” concept will be a reference worldwide.

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  Products and product details:

1. Zk Valencia Cold Room Doors.

1.1) Lithe Sliding : Sliding door for cold chambers used for preservation (+0ºC) and
freezing (-20ºC).
1.2)JUMBO SLIDING :Industrial sliding door suitable for cold chambers used for
preservation.
1.3)JUMBO VERTICAL LIFT:Industrial sliding door suitable for use in cold chambers
and entrance areas where lateral space is not available, but there is height clearance.
1.4)STRIP CURTAINS SLIDING :Fixed strip curtain for preservation (+0ºC) and
freezing (-20ºC) chambers.
1.5)AUTOMATISMS :Industrial automatisms used in sliding doors in preservation and
freezing rooms.

2. Zk Madrid High Speed Doors.

2.1)LITHE AND JUMBO :Doors for high traffic areas which require fast opening and
closing operations. Installation in any industrial sector: agro-food, logistics, automotive,
pharmaceutical.
2.2)SELF-REPARABLE :Door for high traffic areas which require fast opening and
closing operations, with risk of collision.
2.3)FOLD-UP :High Speed door with high mechanical strength.
2.4)HIGH SPEED COLD ROOMS :Roll-up door for chiller and freezer chambers,
usually installed in combination with a sliding cold room door in cold chambers in any industrial
sector: food, meat, fish, logistics services.

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3. Zk Bilbao Service Doors.

3.1)FLIP-FLAP (SWING):Flip-Flap doors for use in air conditioned environments with positive
temperatures, for applications in all branches of the food industry, supermarkets, hypermarkets,
catering, hospitality. For use in high-traffic areas.
3.2)INSULATE SERVICE HINGED: One or two leaf hinged door mainly used in corridors,
offices, and to separate work or service areas. For use in areas with positive temperatures.
3.3)CLEAN ROOM HINGED: Single or double leafed door for use mainly in corridors or
offices, and to separate work and service areas, especially “clean” and “dirty” areas using an
“airlock” system. For use in areas with positive temperatures.

 CERTIFICATIONS: With the Infraca’s support on the technical and technological

leadership of the project, Zirkel Infraca is supported by a company committed with the high
quality European standards such as UNEEN ISO9001:2000 granted by the international
organization AENOR.

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 Chapter IV
Survey Analysis And Interpretation

4.1 Data Analysis And Interpretation

 LOGISTICS: Zirkel Infraca guarantees its customers a coordinated transport in a fast,

personalized, efficient, economic and safe route. The efficiency and commitment of the
company with our customers are reflected in the adequate delivery times of its solutions.

 CUSTOMER AFTERSALES SERVICE: Zirkel Infraca has a postsale technical

assistance service in order to assure our customers the correct assembly, operation and
maintenance of our products, with procedural system for the resolution of possible
uncertainties that may arise.

 TECHNICAL ASSISTANCE : Zirkel Infraca lead the personalized attention to the

customer, making the production of its products and solutions perfectly adapted to their
needs in dimensions, specifications and characteristics. To do this, it has a group of
technical commercial people in charge of advising and finding the best solution to
respond to the different situations that our clients may arise.

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DATA INTERPRETATION

1.Which type of a company is Zirkel Infraca?

 Zirkel infraca is a spanic mnc having plan in chakan, pune.
2. Which type of products Zirkel infraca are producing?
 Zirkel infraca is producer of cold storage doors and industrial doors.
3. What material zirkel infraca outsource to make the main product?
 Zirkel infraca outsouce the raw material and spares of cold room doors.
4. From where zirkel infraca outsource that product?
 From spain zirkel infraca outsource that product.
5. How zirkel infraca outsource those products?
 Import via sea.... Shipments
6. Why did zirkel infraca choose the outsourced provider?
 Velocity global logistics is a good service provider and service and documentation is
fast and perfect
7.What was the process for selecting the outsource company?
 The quick service. Documentations, fast process
8.Can company manufacture that product which company outsourced? If yes then why ? If no
then why?
 No, because we are not getting that quality of raw material in local market...
9.The product which company outsourced are the core product or the services?
 Core products Like doors hinges, docking solution products (dock leveller, sectional
doors, shelters, bollards, and some parts of cold room doors).
10.Does outsourcing product benefit to the company ?
 Yes.. In term of producing quality products it is beneficial.
11.when the product transported to the company in which percentage of products in dispute
conditions and in good condition?
 5% products get disputes sometime when was not handle perfectly while loading and
unloading in ships and containers.
12.what is the quality difference of the product from other vendors?
 Some of vendors are not able to give same quality here locally.

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 Industries they Serve:
o Cold Chain
o Food Processing
o Industrial and logistics
o Healthcare
o Pharma
 400.000 doors manufactured
 Their product in 45 countries
 130.000 sqf production surface in 4 continents
 3000 satisfied customers world wide

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 Chapter V
Findings
5.1 Findings

1. The Process of finding a vendor The researcher found that the selection of vendor is not a
easy task, it requires a focused vision or aim for which the company outsources its
particular activity which it could have performed in-house but cannot due to one or the
other factor.

2. The company first firmly decides the activity that will be outsourced. Then the company
starts searching for Vendor who can perform the activity they want to outsource.

3. Transportation of goods via sea root is also very risky for the damage.

4. Coordination with other countries people may cause problem in outsourcing of the goods.

5. As it is a offsource so their may be material issues happened for the product.

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 Chapter VI
Suggestions and Conclusion
6.1 Suggestions

1. company has lack of laours in logistic department s they should increase their
labour .
2. quality improvement of outsourcing of goods should be their in the company .
3. communication with other parties should be improved.
4. Company can have separate technical support team to serve customers for after
outsourcing service activity.
5. Company should have also increase the product portfolio in its basket to attract
customers.

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6.2 conclusion

Logistic outsourcing is a growing trend and measuring its performance, a challenge. It

must be consistent with the objectives set for the logistics outsourcing,but we have found no
objectives-based performance measurment system. We have conducted a comprehensive review
of the specislist literature, which has led us to identify and defined this objectives. The outcome
is that we have obtained a list of the most relavent objectives and their description. This will
enable us to analyse in a future study whether the indicators used for measuring logistics
outsourcing performance are consistent with the objectives pursued with the out sourcing. If this
is not the case , a proposal will be made for a set of financial and operational indicators to
measure performance in logistics outsourcing that take the goals being pursued into account.

37
 Chapter VII
References (Bibliography)

1. Laxman Zagge (2015) “Final Project on Outsourcing in India.”

2. A Jordan (2017) “project management in outsoursing.”

3.Harjeet kapoor(2018) "Knowledge Process Outsourcing & Talent Outflow-A Study of Indian
Content Developers."

4. Sumitro Mukherjee (2007)”Business Process Outsourcing and India.”:

5. The Future of R&D Outsourcing: Investigating development hurdles, key challenges &
strategies to optimize CRO relationships (2010) :
6. Kroes, JR, & Ghosh, S. (2010). Outsourcing congruence with competitive priorities: Impact
on supply chain and firm performance.

7. Paul C. Lynch(2005) “ outsourcing and offsourcing” : Offshoring is looked at as a version of

outsourcing that procures services or goods from suppliers or manufacturers outside of the
country.
8.Dominguez, L (2006). The managers’ step-by-step guide to outsourcing. Boston: McGraw Hill
Companies.
9. Journal of Operations Management, 28(2), 124–143. Leavy, B. (2004). Outsourcing strategies:
Opportunities and risks.

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 Chapter VIII
Annexure

1.Which type of a company is Zirkel Infraca?

2. Which type of products Zirkel infraca are producing?
3. What material zirkel infraca outsource to make the main product?
4. From where zirkel infraca outsource that product?
5. How zirkel infraca outsource those products?
6. Why did zirkel infraca choose the outsourced provider?
7.What was the process for selecting the outsource company?
8.Can company manufacture that product which company outsourced? If yes then why ? If no
then why?
9.The product which company outsourced are the core product or the services?
10.Does outsourcing product benefit to the company ?
11.when the product transported to the company in which percentage of products in dispute
conditions and in good condition?
12.what is the quality difference of the product from other vendors?

39