Outsourcing -influences and outcomes from telecommunication industry in Sri Lanka

Abstract

Outsourcing is a concept, which is considered to be an emerging in this decade since all organizations required surviving and being competitive in the market where it plays. Telecommunications industry in Sri Lanka is one of the rapid growing industry, where it is considered to be having more and more competition among the operators. This competition is critical due to the prevailing economic environment, where all organizations will focus on reduced costs structure while improving their capabilities within the industry. Therefore, "Out sourcing" is regarded as a major strategy to achieve f1exibility, which keeps the organization in a competitive position in the industry.Since there were few studies on outcomes of out sourcing and to improve knowledge of the decision makers who involved in outsourcing decision, study on outsourcing was carried out. Main objectives of the research were to identify key inf1uences, how outsourcing is carried out and common characteristics of successful out sourcing programs.Based on the theoretical frame work, three organizations were selected from the telecom industry in Sri Lanka and carried out a case study on the out sourcing programs, which had been initiated by those organizations. Since the operating structure and business processes were the same in the industry, organizations were selected in three disciplines like mobile, fixed line and CDMA operators. Managerial positions, who involved in outsourcing of business processes of above organizations,were interviewed base on a structured interview guide.Case studies revealed the major influences of outsourcing and the common characteristics of outsourcing programs. Also, it revealed the way that out sourcing of business processes were carried out in telecommunication sector.