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MAGCALE. Et - Al. PAPER PDF
MAGCALE. Et - Al. PAPER PDF
MAGCALE. Et - Al. PAPER PDF
A Research Paper
Presented to the
Senior High School
University of Santo Tomas
In Partial Fulfillment
Of the Requirements of the Learning Area
Practical Research 3
by
MAGCALE, YENZ P.
MERIDOR, WEE HAN SEI D.
NAVARRO, HANNAH LEANN S.
TRIA, SHANNEN JANN MARI O.
TURBANOS, RALPH WILLIS L.
VALLEJOS, CHRISTIAN LIANNE A.
Grade 12 ABM 6
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 2
ACKNOWLEDGEMENTS
This research becomes a reality with the kind support and help of many
individuals. We, the researchers would like to extend our sincere gratitude to all of
them.
Foremost, we want to offer this endeavor to our GOD Almighty for the
wisdom He bestowed upon us, the strength, peace of mind and good health in order
Research, Professor Anna Rose Esguerra for imparting her knowledge and
for supporting our research study as well as for providing necessary information
regarding this research. To its employees thank you for participating in this study
Lastly, we would also like to thank our classmates, and colleagues at the
University of Sto. Tomas for their encouragement and moral support in continuing
ABSTRACT
since it improves the flexibility, quality and efficiency of the company. Enhancing
the resources of the company will have a positive result in the services of the
questions the effectivity of outsourcing since many studies have indicated that there
effectivity to the company’s profits and the study revealed how outsourcing will be
Corporation, which is an SME that has been outsourcing since it has been
established.
TABLE OF CONTENTS
Page
Title Page 1
Acknowledgment 2
Abstract 3
Table of Contents 4
List of Tables 6
List of Figures 7
List of Appendices 8
1.1 Introduction 15
1.2 Research Problems & Objectives 10
1.3 Assumptions 11
1.4 Significance of the Study 12
5.2 Conclusions
5.3 Recommendations
5.4 Directions for Future Research
References 51
Appendices 56
LIST OF TABLES
LIST OF FIGURES
LIST OF APPENDICES
CHAPTER 1
PROBLEM RATIONALE
1.1 Introduction
Throughout the years, outsourcing became popular within the small and
SMEs have opted for outsourcing because it helps cut their operating cost,
access talent pool, flexibility in staffing and a lot more. However, not everything in
outsourcing is viable. The company may have poor mutual understanding with
profitability. Year 2006, a research had been conducted to find-out the effects of
no evidence that the firm’s profitability will improve through outsourcing (Jiang et.
al., 2006).
Considering the previous study of Jiang and his colleagues, the researchers
company. The researchers will focus on the company Healthmax Care Enterprises
Corporation which is an SME that has been outsourcing since it has been
established. It has outsourced from hiring its employees to delivering its goods.
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 10
This is to help contribute, with the growing demands of the economy that
affects the company, minimize expense and maximize profitability. Mainly to help
reduce the operating costs and focus on the ways to increase profits. This study
company.
answered:
Major Problem:
profitability?
Minor Problem:
Corporation’s profit;
outsource.
1.3 Assumptions
Stated below are the assumptions made by the researchers to identify who
are the effective respondents of this study. The following assumptions will also
questionnaires and;
knowledge.
The researchers will conduct this study because the existing supplement
external workers. The significance of this study is to determine what are the effects
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 12
1. The owners of Healthmax Care Ent. Corp. may use this research as
and distribution expenses in their enterprise. The owners may also use
this research to know what are the advantages and problems in assigning
Since outsourcing played an important role in business, thus far, the overall
CHAPTER 2
The review of the literature for this study focuses on the effects of
Outsourcing
It all started in the 1950’s but outsourcing really flourished in the 1980’s
where it was widely accepted. Outsourcing has grown from being very cost focused
and one of its negative side is that it cannot be depended on for the improvement
of the company. Thus, outsourcing has limited downsides and huge upsides
source within the organization to a source outside of the organization (Kroes &
of reducing overheads costs. (Giertl et. al., 2015). It is one of the important
technology, salaries of their employees, etc., and translate those things into a
variable cost in the form of the purchase price that the outsourcing business then
pays the outside industry, these things were mentioned by the buyers and suppliers.
(Liu & Tyagi, 2017). Although outsourcing boosts profit it also negates the
Researcher Dabhilkar & Bengtsson (2009) says that outsourcing can be a positive
and a negative effect on the business. One of its positive effects on a manufacturing
performance and one of its negative side is that it cannot be depended on for the
improvement of the company. Thus, outsourcing has limited downsides and huge
performance, and refocus on the core business. In the field of services, outsourcing
was originally focused down to basic support activities. It was also used to help the
In 1980s, firms started to turn over the execution of routines tasks to third
enters into a contract with an external firm to manage and to deliver one or more
business functions or processes (Gartner, 2013). BPO has been a good practice in
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 15
in managing its operations (Handley & Benton, 2009; Mani, Barua, & Whinston,
and managerial dilemmas. A number of theories have been used to help scientists
understand the nature of these operations and activities, as well as to help the
traditionally been the most widely-used outsourcing theory. It is considered that the
TCE theory provides the best decision-making tools in order to assist organizations
arising from outsourcing. The characteristics of this model allow for its
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
performance. One stream draws upon control-based theory and emphasizes the
Rustagi, King, & Kirsch, 2008). Control in outsourcing relationships refers to the
(controlees) to achieve desired goals (Choudhury & Sabherwal, 2003; Tiwana &
Keil, 2010). This study focuses on formal control mechanisms, which are exercised
evaluations (Choudhury & Sabherwal, 2003; Tiwana & Keil, 2007). Process
performance based on how prescribed procedures and methods are adopted by the
vendor (Tiwana, 2008). Outcome control is practiced by the client to assess vendor
performance according to the extent to which desired final targets and outputs are
achieved regardless of the process (Henderson & Lee, 1992; Tiwana & Keil, 2010).
For instance, Tiwana and Keil (2010) argued that the performance of outsourced
Process of Outsourcing
outsourcing, only a few models reflect the actual phases and present the overall
structure of the outsourcing process. The critical issue at hand is how to divide the
process into distinct phases in order to understand its structure and appreciate value
generation (Kutsikos & Sakas, 2014). In particular, the researcher, Vaxevanou &
a. Preparation Phase
In this phase, one must answer some questions before proceeding to the next
phase. These questions relate to the reasons for being involved in this process, the
expected benefits, as well as the general philosophy behind the firm’s decision to
be involved in this process (Heywood, 2001; Shepherd, 1999). The most important
aspect of this phase of outsourcing is that the firm should explore all alternative
outsourcing.
The second phase relates to Vendor Selection. Associate of the firm for a
considerable period of time, during which the two parties will be forced to
cooperate and support each other in good and bad times (Perunovic &
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 18
significant part of the preparation phase and setting the stage for operation
selection procedure. This will allow the firm to proceed with the outsourcing
After making this preparation, the organization must announce its intention
to find a Vendor and collect the offers of tenderers, which may be evaluated using
2001; Cullen & Willcocks, 2003). The question to be answered at this phase by the
c. Transition phase
After completing the selection procedure and signing the contracts, the
organization enters the next phase of the outsourcing process, namely Transition.
During the Transition phase all the operations scheduled in the previous two phases
are starting to be implemented. Its aim is to guarantee the smooth productive and
functional transition from the previous situation to the scheduled operations (Cullen
and Willcocks, 2003; McIvor, 2010). A series of questions must be addressed and
resolved during the transition phase, such as maintaining contact among internal
Another sensitive issue relates to the management of workers who will either have
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 19
to be moved to the vendor’s premises or lose their job (Ordanini & Silvestri, 2008;
management. On the other hand, other researchers (Perunovic, 2006) are of the
opinion that Relationship Management is far more difficult and complex than
contract management.
The success of the relationship between the organization and the vendor is
largely determined by the way in which this relationship is managed at the business
level (Marinagi et al., 2014). According to Melvor (2005), the strength of the
e. Reconsideration phase
Reconsideration takes place when the outsourcing process is nearing its end. Apart
from its scheduled time of expiry, a contract may also be terminated earlier for
reasons such as: changes in the ownership structure of the organization or of the
contract terms by at least one of the two parties (Cullen and Willcocks, 2003).
Whatever the time or cause for terminating a contract, the organization must
consider whether it has drawn benefits from this particular relationship, whether it
will benefit from its continuation in the future, as well as which are the elements
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 20
contract. The key options of the organization are: repeating the outsourcing process
with the same vendor; repeating the process with another vendor; or transferring
Opportunities of Outsourcing
The advantages of the outsourcing process relate to the fact that the
executives of these companies are able to move behind the production line. One of
among academics and practitioners. However, much of this interest has been in the
economics, rather than the sociology, of outsourcing. A key source of this interest
is that outsourcing is sometimes associated with the transfer of jobs between firms
and between nations (Sallaz, 2004). This interfirm transfer of jobs sometimes flows
from high-wage firms with strong internal promotion systems to lower-wage firms
with less secure employment (Pfeffer & Baron, 1988; Kalleberg et al., 2000),
wages, benefits, and job security. According to Davis-Blake & Broschak (2009),
when outsourcing occurs, tasks are organized between rather than within firms, and
the resultant design of jobs, work groups, and subunits differs from what would
have occurred if those tasks were organized inside the boundaries of a single firm.
Because outsourcing changes what workers do, how they do it, with whom they do
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 21
it, and what they are paid for it, outsourcing is as significant a change to the nature
affected both work and workers, and each of which has been the subject of
control of external vendors and allowing it, therefore, to focus on more fundamental
Dangers of Outsourcing
refocus on the core business. In contrast, outsourcing initiatives often fall short of
personnel issues, losing control over the outsourced activity, overlooking the
hidden costs of outsourcing and failing to plan an exit strategy are some of the
outcomes. By doing this, aggregate risks and benefits can be assessed at different
systems levels (Knight and Walker, 2005). At the organizational level, management
may face difficulty in deciding how close to core outsourcing should get, gaps like
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 22
limited to a firm’s financial data as a whole rather than just the department that
profitability. Another study done by Delmotte and Sels (2008) found out that
Outsourcing-Profitability
products or services from sources that are external to the organization and it is
strategy for reducing costs. Firms opt to “buy” than “make” goods as long as the
cost of outsourcing is lower than the in-house production (Abraham and Taylor,
1996).
with specialization (Ono & Stango, 2005). Outsourcing influences product quality
and has an impact on the firm’s revenue (Moya et.al., 2014) “You outsource when
someone else can perform the activity better than you”, (Marchington et. al., 2016).
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 23
Thus, companies who hire experts will yield to financial gain. Quinn (1999) said
that “Outsourcing can provide access to the “best in the world” quality for particular
In spite of that, researchers Jiang, Frazier and Prater (2006) revealed that
profitability.
Cost-Efficiency
in the supply chain systems. The need to consider outsourcing opportunities forces
companies prioritize the fixed costs, variable costs and related material supply
costs, and transportation costs. Gencer and Gürpinar (2007) constructed an analytic
network process for solving the vendor selection problem. The proposed approach
included six steps: analysing the vendor selection problem; determining goal and
algorithm and making the final decision. Thus, companies does not make
adjustments for the vendors, vendors are the ones who makes adjustments to the
criteria and requirements of the companies since they can be always be replaced by
another vendor. Outsourcing methods appear to be based the focus on lesser, more
specialist providers that will improve the company’s performance, Kristner (2000).
Ford (2000) states that the reasons for outsourcing decisions as cost reduction,
company that outsource are aiming to realize gains such as lowering of overall cost
focus on company’s core, (4) engage expertise, and (5) reduce operating costs.
questions that are to be answered by the organization are “If”, “What”, and “How.”
The firm would now select its’ vendor to work with that would do the job the firm
wants to give to the vendor. This would finish the preparation phase. The firm must
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 25
define its’ technical and business requirements, the vendor also must state its’
phase, the goal is to have an easy transition from in-house to the vendor. Certainly,
there will be an issue that will arise concerning the jobs of the in-house employees,
that they will be either redeployed or they might lose their job. The relationship
relationship with the vendor. This would establish the support between two parties
and would benefit from each other in the long run. The last phase, which is the
but was revived by Nelson and Winter in 1982. According to Andersen (2008) there
are six basic assumptions for the theory. First is that employees and firms cannot
know everything so they need to adjust and focus their efforts on a local level rather
Third is that employees and the administration may have to resort to mimic
about the third assumption, the imitation and innovation procedures are needed to
be continued but can only be stopped and disrupted via extreme cases and
circumstances.
The fifth one talks about the interaction between the people in the firm and
how unbalanced it is, the external factors such as the individuals themselves and
their techniques are the catalysts for such result. And the last assumption is about
the other five assumptions create a framework where changes are unpredictable and
Transactions Cost Economic theory (TCE). TCE theory gives off the best decision
making tool in terms of knowing what operations in the business are needed to be
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 27
outsourced and after knowing that, TCE also helps the administration to cope up
with the changes within the company after the said outsourcing.
and Willcock’s (1995) research on the decision making about the outsourcing on
relationship management and reconsideration using the point of view of the TCE
theory.
In 1996, researchers Aubert, Rivard and Patry created a model which they
fused it with TCE to come up with the theory Incomplete Contracts. After eight
years, the said researchers (Aubert et al., 2004) came up with another theory the
outsourcing.
firms and the said differences stay secured (Barney & Hesterly, 1996). If the
resources and capabilities of an enterprise are exercised effectively they can know
Suescun presented a model in which she combined the TCE theory and Resource-
operation.
Classical Economic Theory cannot give every information needed and neither it is
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 28
dependable. After which, people started their own theories to replace the Classical
Economic Theory and supply whatever it lacked. The first ever to do it is Stigler in
1961. Stigler proposed the Search Theory in which it focused on the verification of
the vendors and the prices they offer is just a standard of the area and importance
information theory called “signaling”, it focused mainly on the signals that the
The Core Competencies Theory evolved from the Theory of Resources. The
two researchers who proposed this theory (Prahalad and Hamel,1990) said that it is
fusing together their skills that will contribute to the company and integrate them
explanation on how businesses can get and maintain competitive advantage over
b. Agency Theory
to manufacture and supply services. The theory that is focused on the relationship
between an enterprise and all of its stakeholders is called Agency Theory (Jensen
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 29
& Meckling, 1976). The Agency theory has been used to clarify the relationship
a. Relational Theory
This theory is used to know the phases of transition, relationship management and
reconsideration. In short, Relational theory is the only theory that people can use in
the investigation of all the outsourcing stages. In 1995, researchers Willocks and
Choi found out that through enterprises can turn outsourcing from just a simple
partnership into a tactical partnership via well laid out plans before-hand.
Yahnyong (2011) related his outsourcing model’s focus that was based from the
outsourcing process are set on by the value of the relationship the two parties give
b. Neo-Classical Theory
characters, first is that employees and firms act reasonably to comply with their
idea to maximize their benefits. Next is constantly creating and hitting a target. Last
is that the said theory does not answer the issue of inadequate information between
the organization and its employees. The theory was heavily criticized for that flaw.
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 30
relationships with the help of economic cost benefit analysis for the social
CHAPTER 3
RESEARCH METHODS
part, it presents the methods to be used in the study. In more details, the researchers
outline the research design of the subject of the study, the instruments used, the
procedure of data gathering, the statistical treatment of data, and the analysis of
data.
profitability.
quantitative) is done. Researchers will use descriptive and analytical designs. This
research will scrutinize the public accounting data of the company. The researchers
will collect the sales report of the company from 2015 to 2017 to compare its profit
asking a set of questions from a sample of people from a population in which their
inquiry with the chosen people in the company is conducted. The researchers will
use a five-point Likert-scale design the degree to which the enterprise rate the
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 32
in-depth interview will also be conducted to specify more the perception of the
qualifiers on using outsourcing in the company. The researchers will also use the
company. This approach can produce reliable and valid findings in which a
systematic set of procedures for analyzing qualitative data was used (Thomas,
2006).
company, which is an SME located in 747 Purok 5, M.L. Quezon St., Sucat,
Healthmax Care Enterprises. They will provide the necessary enterprise’s statistics,
financial data, and other information needed to conduct the research. The owner/s
and workers will also answer the questionnaire provided by the researchers. The
company have 3 active owners which will be part of the survey anf workers will be
limited to the population under the study providing the questions to answer by the
effects of outsourcing to Healthmax Care Enterprises Corp. The qualifiers for this
sampling method are the owners and the employees. They are eligible to proffer the
necessary information that the researchers want since they observe, manage, and
evaluate employees who’re part of the outsourcing. Therefore, this will give the
is designed only for the owners and the employees of Healthmax Care Enterprises.
The first section is structured in a Likert- scale model to examine how the
inquiries in compliance with the owners and employees at the managerial level’s
The researchers will use descriptive statistics for the statistical treatment of
data of our study. In extent to which the observations are described by the central
Before gathering data in the company, the researchers will send a request
their company.
Given that mixed method is used on this study, the researchers used
sequential design as their model. It is the collection and analysis of quantitative data
quantitative study (Creswell, 2003). Hence, we will carry out triangulation for the
validation of our study. Triangulation implies a combination of more than one set
the researchers agree on using this method for it will help them analyze the data
easily.
their company and guaranteed the researchers that they will participate during the
entire research process. The researchers will send a feedback letter to the company,
collect documents of the company for the document analysis. The researchers will
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 35
use primary data collection method for the document analysis procedure. The
researchers will collect all public documents of the company such as financial
statement, income statement, statistics, etc. depend on what they will provide.
Before proceeding to document analysis, the researchers must plan out to guarantee
The researchers will distribute the questionnaires and will visit the company
researchers will tally the questionnaires. after tallying, they use graphs and tables
to illustrate the findings. from that, they can start interpreting and analyzing the
information.
Results from their analysis and interpretation will be the basis of the
problems.
respond the researchers will distribute a five-point Likert scale (see Appendix).
The questions under study will be treated by using central tendencies and
percentage. Also, it will measure the data about the company’s profile on their sales
All identifying information that will be given by the respondents will not be
Anonymity of Personnel
The identity of the respondents will be kept unknown. This is to avoid any
Only Assess Departments That Practice and Has the Capability to Practice
Outsourcing
The departments where outsourcing can help are the population that is
highly relevant to the study. The study will focus on these departments to avoid
CHAPTER 4
The chapter discusses the variables of the study, present the results of
the questionnaire.
Reasons to Outsource
33%
67%
The graph shows that 67% Agreed while 33% answered Neutral. This means that
the respondents agree that outsourcing helped the company’s overall performance.
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 38
78%
The graph above presents that 11% of the respondents both Strongly Agreed and
answered Neutral. And 78% of the respondents Agree in this question. This means
that the respondents agree that the company should outsource for the transference
of jobs.
11%
78%
Based on the graph above 11% of the respondents both Disagreed and answered
Neutral. And 78% of the respondents Agree in this question. This means that the
respondents agree that the company outsource to focus more on their core.
34%
22%
33%
The graph above shows that 11% Disagree, 22% Neutral, 33% Agree, and 34%
Strongly Agrees in this statement. This means that the respondents strongly agree
that the company should outsource to gain more workers with expertise.
45%
44%
The graph illustrates that 45% of the respondents agreed in this statement. This
means that the respondents Agree that when it comes to outsourcing as a cost-cutter
in the company.
Figure 7. There are operations in the firm that are appropriate for outsourcing,
and there are some that are not
56%
This means that the respondents agree that outsourcing is not for every field of work
in a company. 56% of the respondents agree that some operations are appropriate
for outsourcing and some are not.
Dangers of Outsourcing
easy
11%
34%
22%
33%
The pie graph shows that 34% is the highest percentage. This means that the
11%
56% 33%
The graph states that 56% Agreed in this statement. This means that the respondents
Figure 10. External workers regulate the intellectual property of the company.
22%
56%
22%
The graph above shows that 56% of the respondents Agreed in this question agreed.
This means that the respondents agree when asked if the company should not
Figure 11. External workers fail to deliver product on time. Therefore, it's
11% 11%
33%
45%
45% answered neutral. This means that the respondents feel neutral when asked if
Opportunity – Profitability
56% 33%
56% agreed in this statement. This means that the respondents agree when asked if
33%
67%
More than half of the respondents (67%) feel neutral when asked if outsourcing
Figure 14. A company can make the most out of its financial resources through
cost-cutting which is a result of outsourcing
Agree
Disagree
22% 22%
Neutral
56%
56% answered neutral in this question. Therefore, the respondents feel neutral when
asked if a company can make the most out of its financial resources through cost-
33%
67%
Based on the graph above 67% agreed to this statement. Therefore, the respondents
production quality.
11%
89%
The graph illustrates that 89% agreed to this statement. This means that the
profit
Figure 17. Some functions in the company can be completed faster, cheaper or
better because of outsourcing
11%
89%
On the graph above, 89% of the respondents agree in this question. This means that
the respondents agree that some functions in the company can be completed faster,
All of the respondents say that outsourcing leads to its positive results when
Healthmax Care conduct a proper and thorough research before hiring external
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 46
workers. Meaning, a business must choose the right person, study the pros and cons,
define clear objectives, and monitoring for evaluation. One hundred percent (100%)
and the employees are significant. The reason is for the workers and management
outsourcing. The company learned the system of outsourcing and their efficiency
outsourcing, the company learned the value of cooperation, and techniques and
skills. All respondents agree that outsourcing maximizes the company’s resources
company’s cost and the company is more focused on the things needed to be
focused on, which results to decrease in work hours and/or workloads. Others
responded that the company was able to do improve their performance since
external workers are screened carefully before hiring. Based on the results 77.78%
agreed that outsourcing leads to a better cooperation between the management and
common responses of the respondents are to be careful, to be aware, and to hire the
right person. Others also advised to give clear instruction, should be clear of the
All answers pertaining to the questions given by the researchers agreed that
outsourcing is necessary for the company. Based on what the owners and workers’
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 47
response, outsourcing aid the business to function well, be productive, and to help
them focus on their core so the business can yield a greater profit.
RATINGS
1 2 3 4 5
Reasons for f % f % f % f % f %
Outsourcing
Improvisation of 0 0% 0 0% 3 33.33% 6 66.67% 0 0%
Performance
Transference of Jobs 0 0% 0 0% 1 11.11% 1 11.11% 7 %
Focus on their Core 0 0% 1 11.11% 1 11.11% 7 77.78% 0 %
Tasks
Acquire Expertise 0 0% 1 11.11% 2 22.22% 3 33.33% 3 %
Reduce Operating Costs 0 0% 1 11.11% 4 44.44% 4 44.44% 0 %
Operations 0 0% 0 0% 1 0% 5 55.56% 3 %
Dangers of
Outsourcing
Transition from in- 1 11.11% 2 22.22% 3 33.33% 3 33.33% 0 %
housing to outsourcing
Cause of Product/Quality 1 11.11% 0 0% 3 33.33% 5 55.56% 0 %
Failure
Intellectual Property 0 0% 2 22.22% 2 22.22% 5 55.56% 0 %
Fail to Deliver Product 1 11.11% 0 0% 4 4.44% 3 33.33% 1 %
on Time
Opportunities –
Profitability
Maximization & 0 0% 1 11.11% 3 33.33% 5 55.56% 0 %
Improves Overall
Capability of a Company
Competitive Advantage 0 0% 0 0% 6 66.67% 3 33.33% 0 %
Financial Resources 0 0% 2 22.22% 5 55.56% 2 22.22% 0 %
Specialization 0 0% 0 0% 3 33.33% 6 66.67% 0 %
Productivity 0 0% 0 0% 1 11.11% 8 88.89% 0 %
Cost Reduction 0 0% 0 0% 0 0% 8 88.89% 1 %
1 – SD 2–D 3–N 4–A 5 – SA
MEAN VERBAL
INTERPRETATION
Reasons for Outsourcing
Improvisation of Performance 3.67 Neutral
Transference of Jobs 4 Agree
Focus on their Core Tasks 3.67 Neutral
Acquire Expertise 3.89 Neutral
Reduce Operating Costs 3.33 Neutral
Operations 4.22 Agree
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 48
Dangers of Outsourcing
Transition from in-housing to 2.89 Disagree
outsourcing
Cause of Product/Quality Failure 3.33 Neutral
Intellectual Property 3.33 Neutral
Fail to Deliver Product on Time 3.33 Neutral
Opportunities - Profitability
Maximization & Improves 3.44 Neutral
Overall Capability of a Company
Competitive Advantage 3.33 Neutral
Financial Resources 3 Neutral
Specialization 3.67 Neutral
Productivity 3.89 Neutral
Cost Reduction 4.11 Agree
1-1.99 SD, 2-2.99 D, 3-3.99 N, 4-4.99 A, 5-5.99 SA
The respondents generally answered neutral based on the table above. The
company’s reasons to outsource are valid and that the company can either benefit
from this practice or not. The respondents also feel neutral about its dangers. This
means that they recognize that these dangers really happen in the company if not
outsourcing, the respondents answer was averagely neutral. Respondents agree that
the company’s profit increases due to outsourcing, however some respondents still
believes that everything still boils down to the management. This is because some
of the operations are best done with outsourcing and there are some that aren’t best
marketing, contractual sales force and regulatory & licensing assistance, for the
month of January and Mazingraz Corporation, a company that also offers the same
services, from February to July. In January of 2015, Primemed Co. was hired for
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 49
Contractual Sales Force and to produce Purchase Order (PO), a document that
producing a PO and was replaced with Mazingraz Corporation, also hired for
Healthmax Care Capsule. On May, two POs with quantities of 480 and 960 boxes
was produced in preparation for the promo called, Suki Sabado, an event where
selected brands are offered at a discounted price, in Mercury Drug Store but the
& A/R Management, and Delivery, which is hired from September of 2015 to the
present day. The outcome of the promo, Suki Sabado, resulted to a decreased PO
in November and December with only 240 boxes. Total PO for the year 2015 was
2,880 boxes.
of branded products, for the promo of free wipes/med kit in which the PO has
increased immensely in the month of April. Stocks lasted until November and was
issued a new PO with 240 and 55 boxes. On December, Mercury Drug issued five
POs with quantities of 240, 120, 60, 288, and 144 boxes because of newly launched
promo pack which is 10 capsules instead of 100 capsules. RBC-MDC Corp. was
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 50
inactive and did not contribute to the sales thereafter. Total PO for the year 2016
CHAPTER 5
recommendations, and direction for future research based on the data analyzed in
5.1 Summary
of this study helped the owners see the different perspective of their workers. This
study may help them hit their goal as a company. The significant effect of
cost, efficiency, and level of expertise in different departments. The participants are
the owners and workers of Healthmax Care Enterprises, Corp. The researchers
found that outsourcing has a significant positive effect on the company’s overall
complete the study. The researchers found that outsourcing has a positive and
resulted generally as neutral. The sales analysis also proved that the company can
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 52
either hire external workers or internal workers. Above all, the effects of
5.2 Conclusions
Based on the findings of the study, the following conclusions are drawn:
some risks taken by the company just as the promo they market but then
sales force because of stagnant performance on sales the past years but they
5.3 Recommendations
1. The researchers suggest that the business can either hire external workers
suggest:
2. The company must have control over the project that is given to the
3. One of the benefits known for outsourcing is cost-cutting. The company can
cut the cost of recruitment, training, and benefits for employees because
outsourcing already has employees and their knowledge to do the work. But
increase costs rather than cutting it. The company should always consider
departments that are eligible for outsourcing for the maximization of the
resource for doing the job, but if the company decides to outsource, the
company will be able to have access to resources they do not have. The
company should outsource only the aspects that are lacking, to be able to
will review or use this study. The said directions are in not in any way factual but
3. This study serves as a warning to future researchers that they cannot apply
the data that the researchers of this study accumulated and analyzed because
it was specifically gathered for the Healthmax Care Co. and the said results
4. The future researchers may get data from the company that Healthmax Care
addition to that, they can also help the company to improve their overall
efficiency.
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 55
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UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 60
APPENDICES
QUESTIONNAIRE
Name:
___________________________________________________________
_______________
Position:
___________________________________________________________
_____________
I. DIRECTIONS:
Each item included a response scale from 1 to 5 up to which extent you
agree or disagree on each item. Respond to the following statements by
SHADING THE CIRCLE INSIDE THE COLUMN which best expresses
your own opinion regarding that statement.
1 = strongly disagree/SD 2 = disagree/D 3 = neutral 4 = agree/A 5=
strongly agree/SA
QUESTIONS 1- 2- 3- 4- 5-
SD D N A SA
Items measuring the prerequisite of the company
to outsource.
Reasons to Outsource
1. Outsourcing helps the company improve its ○ ○ ○ ○ ○
performance.
2. The company outsource for transference of ○ ○ ○ ○ ○
jobs.
3. The company outsource to focus more on ○ ○ ○ ○ ○
their core.
4. The company hire external workers to be ○ ○ ○ ○ ○
engage with expertise.
5. Outsourcing can reduce the operating costs ○ ○ ○ ○ ○
of the company.
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 61
II. DIRECTIONS:
Please answer the following questions. Write your answers on the space
provided below each questions.
1. How does the steps to be taken when transitioning to outsourcing lead to its
positive results?
________________________________________________________________
________________________________________________________________
________________________________________________________________
3. What are the things that the management learned from the outsourced
employees?
________________________________________________________________
________________________________________________________________
________________________________________________________________
4. How did outsourcing maximize the company’s resources and capabilities leading
to the company’s overall improvement?
________________________________________________________________
________________________________________________________________
________________________________________________________________
5. Did outsourcing lead to better cooperation between the management and the
employees?
________________________________________________________________
________________________________________________________________
________________________________________________________________
6. What are the ways to avoid the risks of outsourcing from happening?
________________________________________________________________
________________________________________________________________
________________________________________________________________
2015
2016
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 63
2017
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 64
CURRICULUM VITAE
Representative for the year 2011, 2012, and 2015. He can speak fluently in Filipino
and English. He is able to work under time pressure and can work well with others.
gain profit, and spending time with family and friends. Magcale's professional
Sales. Aside from his qualities, he is also capable of using Microsoft Word, Excel,
Meridor was a Leader of the Boy Scout of the Philippines in Masbate when
he was in elementary at the Jose Zurbito Sr. Elementary School. He was also the
Student Council President at their school at his last year in elementary. He played
represents UST at the UAAP. He still plans to play football until college to help his
an honest person. She is flexible with whatever work is given to her. Navarro is
photo editing and Microsoft office. July 2017, she enrolled at Inventive Media to
study Adobe Photoshop CC. She also attended a Marketing Seminar February of
this year at the UST Central Seminary. Ms. Navarro can also speak Filipino and
English fluently.
UNIVERSITY OF SANTO TOMAS SENIOR HIGH SCHOOL PAGE 67
Honorable Mention, the year 2012. She continued her secondary level at Stella
Maris School of Lubang, Occ. Mindoro for three years, then transferred to Holy
Stella Maris School. She is also Student Council member and a class president from
School Year 2012-2015. Tria’s technical skills are editing in Microsoft Word,
Publisher, and Powerpoint. She attended special training programs and seminars, it
Training Seminar in San Carlos, Cebu City with its theme: “BIDA Change You
Want to See in the World” (2013), and a Marketing Seminar held last February
2018. Tria received numerous academic awards during her elementary & high
school. She also received certificates for leadership and for participating in the
honorable mention award in Nazareth School of Hijas de Jesus (now known as NS-
NU). In his stay in Nazareth School of Hijas De Jesus, he became a Student Council
Officer during his grade 3 & 4 in elementary. Mr. Ralph Turbanos also participated
in various spelling bees, quiz bees, and declamation contest in the said school. After
graduating elementary, he moved to Holy Trinity Academy where he spent his high
school life. In his first three years, he made the basketball varsity team. In his last
year, he opted to not be a part of the team and became a Student Council Officer.
And the time in between all that, he starred in different plays, emceed school events,
High School student in University of Sto. Tomas and is set to go to the College of
leadership, public speaking, and numerical ability. She is also the President of her
Junior High School Science Club, the year 2014 and participated as a volunteer in
a Tree Planting Activity. During her Junior High School Vallejos is a consistent
honor student and was awarded for 9 consecutive years in Spirit of Joy School. As
a swimmer she also received numerous medals and awards, some of her awards
include, UAAP Athlete (October 2016 & 2017 - University Athletic Association of
the Philippines), Athlete of the Year (March 2016 Junior High School), Leadership
Award (March 2016 - Junior High School), ROTC (March 2016 - Junior High