MBA Program

Course Title: Environment & Business

Course ID: BUS 503, Section 1,
Semester: Fall, 2022

Group Assignment on
Applying Outsourcing on
Akij Plastics Limited
Course Instructor
Nigar Sultana
Brac University-MBA Adjacent Professor
Prepared by
Sabrina Shahid Torsha 21364013
Fariha Ferdous Niti 22264063
Md. Rasidul Islam 22364027
Israt Jahan Jeba 22264039
Nabil Ebney Kamal 22364102
Date: 27th November, 2022
 Table of Contents
Executive Summary…………………………………………………………………………... 1
Outsourcing…………………………………………………………………………………… 2
Goals and Objectives of Outsourcing………………………………………………………… 2
Outsourcing Services…………………………………………………………………………. 4
Reasons behind not Hiring more Employees………………………………………………… 5
Lower Labor Cost……………………………………………………………………………. 6
Lack of Control………………………………………………………………………………. 6
Access to Outsourcing Partner………………………………………………………………. 8
Importance of Transparency in Outsourcing………………………………………………… 10
Outsourcing Service Providers………………………………………………………….…… 11
Process of Selecting Right Partner…………………………………………………………... 13
Considerable KPI…………………………………………………………………………….. 14
Conclusion…………………………………………………………………………………… 15
References
 Executive Summary

Akij Plastic is one of the business concerns of Akij Group. Chairman of Akij Group, Mr. Sheikh
Akij Uddin started Akij Plastic’s journey in 2016 with the aim of providing the best quality
product to the general people. In a very short span of time Akij Plastics Limited has gained the
trust and acceptance of consumers as a manufacturer of uncompromising quality plastic
products. Akij Plastic can still be the number one by exporting their products to other countries
and also can make more benefits if they apply Outsourcing. Recently “Outsourcing” has become
a famous term in the Business world. Due to economic downturn now-a-days companies are
looking for ways to save money and increase their profits. Many large companies often
outsource certain jobs to companies who specializes in specific services. In Business,
outsourcing is the contract out of a business process to a third-party company. The term
“Outsourcing” became popular in the United States near the 21 st Century. Outsourcing can
change the business pattern of Akij Plastic Limited. In this report we are going to discuss how
can Akij Plastic apply the outsourcing what can be the goals and objectives for applying
outsourcing. What type of services should Akij Plastic take if they apply Outsourcing. For
applying outsourcing there are some factors which Akij Plastics need to focus like: Lower labor
cost maintaining, there can be a risk of losing control and also keeping transparency with the
third-party firm. As choosing the right partner is very important in this report, we tried to
mention some Outsourcing Service providers which Akij Plastic can choose if they apply
Outsourcing. For Akij Plastic it is important to measure the KPI after applying outsourcing. In
the conclusion part we tried to mention Akij Plastic can be in the Global market if they apply
Outsourcing properly.

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  Outsourcing
Outsourcing is an agreement in which one company hires another company to be
responsible for a planned or existing activity that is or could be done internally. Outsourcing
provides operational, or non-core functions, such as manufacturing, facility management, call
center/call center support. Outsourcing is about managing relationship more than service-
level agreements, and is a partnership, not a purchasing project. Maintaining and securing a
trusted relationship is essential in outsourcing efforts and is more complex than establishing
service levels and relationships.

 Goals & Objectives for Outsourcing

Akij Plastics manufacture consumer products which are made by 100% virgin material. They use
harmless materials for the customers and they don’t compromise with the standard of the quality
for the consumers. Akij Plastics can perform even better in other countries if they continue their
work with Third-Party companies or apply Outsourcing.

Outsourcing can help the companies to achieve their goals and can help in determining the
objectives. Because Goals are the outcome statements that define what an organization is trying
to achieve or accomplish. On the other side, business objectives are specific and measurable
results that companies hope to maintain as the company grows. Goals and objectives both help
companies plan for the future.

Goals for Akij Plastic Limited:

 Reducing Production Cost: First and foremost, reducing cost or saving some cash for
the company is the primary reason why many companies apply outsourcing. Companies
can have better quality product from outsourcing but in a cheaper rate. Reducing cost can
be the first goal for Akij Plastic. Because Akij Plastic can have their desire products
without investing in infrastructure, software or in personnel.
 Increasing Efficiency: Outsourcing is the better solution to increase efficiency of
employees. It helps company to focus in which they are expert like: product
development.

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  Improving Focus on Business Activities: Outsourcing allows companies to be flexible
and focus on business activities more. There are more time and resources to spend on the
other division of the company and this can result more competent product and services.
Akij plastics can think of to bring some new products for outside countries perspective as
well.
 Reaching easily Global Market: Reaching global market can be one of the main goals
for the companies. Because outsourcing helps the companies to provide the best services
or best quality products according to the Global Market’s demand without investing big
amount. Example: Akij Plastics Limited planning to export the products to Nepal,
Bhutan & USA. Through outsourcing they can easily serve those countries. ( Akij Plastics
targets, 2022 May 28)
 Risk Management: The bigger a company grows; the more risks are to be expected.
Outsourcing is the way with whom companies can share their risk with third party
company. As companies will be hiring experts or will give some projects to third party all
the risks will bear by the outsourcing company. Example: Akij plastic can give their
project to any third-party company like: Siddique Plastic Industry (Noorbagh, Kamrangir
Char) the Labor cost or the production related work and all types of risk will be bear by
that specific plastic company. (Address Bazar.Com (n.d.)

Objectives for Akij Plastic Limited:

 Finding out a full set up Plastic Factory who takes bulk order (Address Bazar.Com (n.d.)
 Utilizing resources in productive work, giving third-party time-consuming work
 Producing Variety of product to capture market, like: they can focus the medical sector
along with household and industrial products.
 Looking for the companies who matches the criteria of global market, like: hiring
Marketing agencies of Nepal to promote Akij Plastic in Nepal as they want to export
products in Nepal.
 Sharing risk with third party

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  Outsourcing Services

One of the biggest changes in the early 21 st century came from the growth of groups of people
using online technologies to use outsourcing. It’s a way to build a viable service delivery
business that can be run easily from anywhere virtually. Still there are some services which is
needed physically to be done. There are 4 services which requires outsourcing for Akij Plastics
Limited. They are:

1. Packaging and Warehouse Service: As Akij Plastics Limited company have plans to
export their products in foreign countries they have to maintain the quality according to
those foreign countries. They can outsource the packaging and warehouse from the
foreign countries. Example: M&W Logistics Group, Premier Logistics Solutions are the
US based third party packaging companies which provides services to other companies
regarding packaging and warehouse related. Also, there are several third-party packaging
companies in Bangladesh like: Atlantis Printing and packaging which provides different
company packaging related services. (CIN 7 Orderhive.Com)
2. Legal Affairs (Lawyers): Following the legal procedures for any company is essential.
As setting up an industry requires many legal procedures to handle this type of time-
consuming work it’s better to contact with third party company. Example: LEK
Consulting is a Global Management Consulting US based company, who provides legal
services, legal operations and legal tech help to navigate a changing market and make
critical investment decisions. Akij Plastics can take this type of services so that they can
focus on the other work. (LEK Consulting. (n.d.)
3. Marketing & Advertising Services: Marketing and advertising is an essential work
which attracts the consumers towards the products or services. After the COVID period
digital marketing has become the vital for businesses, digital marketing can prove to be
extremely useful to reach wider subsets of customers. Also Marketing expertise will
boost the company’s competitive edge. For Akij Plastic Limited Marketing and
Advertising will be the main tool to capture the global market. In Nepal, USA there are

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 several marketing agencies who provide services regarding Marketing and advertising.
PRAN, KTM already taken the services through outsourcing company name: Social
Media Promotion (SMP). (Shroff, Mamta. (2022, July 2)
4. Customer Service: Customer service is the way which brings customer satisfaction
towards any company. Along with reducing the costs, increasing efficiency it is important
to gain the customer satisfaction. Outsourcing or third-party customer support can give
any company the flexibility to scale and handle the demands. Outsourcing companies
often have the access to the latest technology and infrastructure which can be beneficial
for the main company. Example: Akij Plastic already have the hotline number and a
Return & Refund policy but the customers have to drop off those products to a specific
station if they want to return their products. If they provide these services through
outsourcing customer service would be better. The third-party agents will take care the
drop off/pick up procedure or the complaint sectors on behalf of Akij Plastic limited.
(Akij Plastics. (n.d.)

Sometimes it hard to achieve the business objectives if company do it by their own. Outsourcing
can be the best solution for them. By dividing some time-consuming services with outsourcing
companies achieving goals will be much easier.

 Reasons Behind not Hiring more Employees:

No, there will be no need to hire more employee if we apply outsourcing. Outsourcing is applied
to reduce operational cost if Akij Plastic Limited hire more employees then the main goal of
reducing cost will not be achieved at all. Also, there are some other reasons for not hiring more
employees if we apply outsourcing. These are:

 Higher level of Expertise and Specialization: Outsourcing or outsiders can bring higher
level of expertise and special skills than entry level new hiring employee. Companies we
might outsource to have seen a lot, they are expert in short, they are good what they do
and get everything done efficiently. This type of service we can’t expect from the hiring
employees because we have to train them and which requires a lot of time. That’s why
outsourcing will be best than hiring.

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  We only outsource when we need them: Depending on some project timeline we might
need some professional service for a short period of time. In this case outsourcing is the
best option. (Zurial, Axelle (2019, December 5)
 Sticking to budget: Hiring new employees for companies is a costly project. Every year
we have to plan for the increment issue for the permanent employees which is not
possible to make every year within the budget. But if we outsource for our specific job
we can work within a specific budget.
 Deadlines: Permanent employees sometimes can’t complete the project on time whereas
outsourcing companies or third-party companies are always strict about their deadlines.
Before any work begins, they’ll discuss about project needs provide exact schedules for
completing tasks.

 Lower Labor Cost:

As a team leader/member of AKIJ Plastic of Bangladesh before starting to apply outsourcing, we need to
calculate a few prospects of outsourcing. Outsourcing is a process in which companies and organizations
handover jobs to vendors working outside. Any work processes which can be handled from the outside
location of the organization can be outsourced.

Outsourcing has become an easy and cost-effective technique, which is widely practiced all over the
world. The developed countries prefer outsourcing as a business development strategy. The system of
outsourcing has no fixed employees and the company can choose and negotiate for the job and come at a
price which is effective and also efficient. One of the major benefits of Outsourcing is cost effectiveness.
Outsourcing allows you to get specific output at a very low cost and in a much more efficient way. If one
wants to hire a professional for the company the remuneration is too high whereas outsourcing for the
same amount of work is cheaper. For any organization cost minimization is very crucial and affects the
business in various ways. Suppose higher wages, higher raw materials cost the production cost higher and
to survive in the plastic industry Akij plastic must think about the cost before coming to any plan. To
keep up the pace in the competitive market cost minimization is always practiced. When compared to
hiring potential employees with higher wages, trainee programs are also not required as experts from
different parts of the world are engaged in outsourcing. The work will be handed over to people who are
already experts and who can bring high efficiency and quality in the work. Prices also get lower when 1st
world countries hire 3rd world countries' workforce.

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  Lack of Control for Outsourcing:
Outsourcing involves vendors and work distribution. A problem in outsourcing implementations
is a lack of understanding and lack of control. To simplify the clients and vendors are apart from
one another. Close work monitoring is not possible. The biggest risk is loss of visibility and
control. Loss of visibility and control is a common fear with a potentially high price to pay.
Without visible work done the manager cannot share ideas or direction to continue the job when
it comes to completing the work.

With limited communication with vendors the risk management becomes actual work and the
resulting product may not be satisfactory in many cases or the service provided did not achieve
the results expected. Loss of control in outsourcing can mean very high costs with a sub-par
product that was developed behind schedule. As a result, time management becomes at stake
when working in outsourcing. For Akij plastic time is a valuable asset and to use this asset any
team leader must take necessary measures to go through outsourcing.

Control cannot be made in outsourcing but specifications and proper direction of working can
help during the work.

Whether we sign a contract to have another company perform the function of an entire
department or single task, we are turning the management and control of that function over to
another company. Though there will be a contract, but the managerial control will belong to
another company. Our outsourcing company may not be driven by the same standards and
mission that drives our company. When we outsource a function from our organization to a third-
party, we are effectively signing over management control and decision making for that function
to another organization. Even if we will have a contract in place to cover the service level
agreement, it won’t cover management decisions, and the third-party may probably not be driven
by the same factors that drive our organization, resulting in potential conflicts. The main piece of
advice in this particular situation is, that before signing the new contract, the manager thinking of
outsourcing should communicate all his / her future desires clearly, right from the beginning. In
this particular way, undesirable situations can be prevented. Furthermore, the organization
outsourcing should look for compatible goals and common ideas with the company that is ready
to take the specific business part further.

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  Access to Outsourcing Partner:

In any business, outsourcing practice is very common nowadays. It’s more like a third party who
provide services for your business. It can be some IT services or technical support and it may
reduce costs and increase efficiency if one big company considers having an outsourcing partner.
Therefore, there are some measurements to take before hiring an outsourcing partner and how
much one should give access to their outsourcing partner.

Outsourcing practice became gets it popularity in the ‘90s. Although after the Covid pandemic
many businesses try to cover their IT works and administration works with their outsourcing
partners. If your goals and criteria are unclear, choosing the correct outsourcing partner might
take up a significant amount of your time. Every BPO provider has something to offer. Each has
different specialties and is better suited to a specific sort of client. Whether you are experienced
or new to the outsourcing market, assessing your requirements and possible applicants is always
vital. There are factors to consider while outsourcing, thus it is your obligation to understand the
partnership's requirements. You must bring a checklist to aid you in your decision-making
process. When evaluating possible outsourcing providers, consider what they can accomplish for
you and how they do business. Therefore, it is important to choose the right outsourcing partner.
To do it properly one can consider these factors before hiring an outsourcing partner,

 Location: One advantage of outsourcing is that you may access the skills and resources
of another country. However, if there are cultural differences or language barriers, this
might be a disadvantage. Consider the outsourcing company's location and whether it
makes sense for your firm. (Saraev,2022)
 Cost: This is an important factor to consider when outsourcing any corporate function.
However, don't let price be the only deciding factor. It is critical to pick a firm that
provides value for money rather than simply the lowest alternative. (Saraev,2022)

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  Service offered: Check to see if the firm you're considering can offer the services or
goods you require. Integration with your existing systems is also critical. If you're
outsourcing IT, for example, ensure that the business you hire is compatible with the
software and technology you already have. Inquire whether they give training for your
employees so that they can use the new technology properly. (Saraev,2022)
 Time zone: Dealing with an outsourced business on the other side of the world creates
significant hurdles due to time differences. It might impede communication and cause
delays in completing tasks. Another crucial factor to consider is if you're outsourcing a
service that requires consumer contact. You must ensure that your clients are not
inconvenienced by synchronizing the time zones of your staff and the outsourced
provider. (Saraev,2022)
 Payment terms and termination clause: The majority of outsourcing agreements are
based on an hourly basis. However, certain businesses may charge a monthly or yearly
fee. The most successful ones provide sliding scales as your company expands, with
lower fees for greater services. Before agreeing, make sure you understand the payment
conditions. On the other hands, if things don't work out with your outsourcing partner,
make sure your contract has a termination provision.

It should include the following:

 A certain time of notice

 The circumstances in which you may end the contract
 What happens to your data if your contract is terminated?

This prevents you from getting stuck into a long-term contract with a provider that isn't
satisfying your demands. (Saraev,2022)

According to Saraev “Outsourcing can be a great way to save money and free up resources so
that you can focus on your core business. But it’s important to take the time to find the right
partner” (2022, conclusion). Therefore, with the right outsourcing partner, we can do business
properly, although we need to consider how much access we need to give him. These are:

Minimize Risks and Maximize control: Aside from choosing the proper partner, a firm may
take some steps to ensure that it retains control over its initiatives. For example:

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  Establish clear expectations and remain active in the process.
 Make yourself available to answer questions or evaluate work as required.
 Inquire with your spouse about how they will address any difficulties that emerge.

To do it properly, the outsourcing partner might need some data and flexibility in his
work. Therefore, one needs to give that access to its outsourcing partner, but also needs to have
control over them so that they cannot put the company in any danger. (Devila, 2018)

Control over the company’s confidential data:

Another big issue regarding a company and outsourcing company issue is its access to the
data of the company. A company’s private data or customer’s data is important for the
company’s reputation and any leakage of data can create chaos. Akij Plastic of Bangladesh is a
big company in Bangladesh. Its data have a big impact on the share market. Therefore before
giving access to its data to an outsourcing firm the company much insure that no confidential
data is given to the outsourcing firm. (Devila, 2018)

From this discussion, we come to know about the ways of finding the right outsourcing
partner and how much access I should give them to work for me. From my point of view, Akij
Plastic group should hire a reliable big outsourcing partner to give them enough access so that
they can provide the most possible workforce for the organization.

 Importance of Transparency in Outsourcing:

In any business, the most successful contracting relationships are built on “Trust”. As business is
evolving and many companies are considering taking outsourcing team to cut down some cost
and works more on business. There are 8 pillars of “Trust” in business. Among them, the first
one is clarity/ transparency. Businesses of any type need to have clarity among its employee and
owners. Just like that in outsourcing practice transparency is most important. (Horsager, n.d.)

Outsourcing is rapidly increased after Covid-19 and due to Covid, many big companies
understand that they could cut the cost of rent and other facilities by hiring 3 rd party outsourcing
companies to do their tasks. Therefore, transparency between the company and outsourcing
partner is really important. The improvement in transparency will spark a lot more opportunities
for this type of partnership. On the other hand, a lack of transparency can lead to many

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difficulties which can destroy the unknown opportunity which still needs to earn. For example,
Cornwall Council canceled and back-sourced a large contract with BT for IT services after less
than two years, while the Ministry of Defense opted to back-source a large contract with Serco
for corporate services, including personnel resources, finance, information, and vetting. It is
unclear whether a lack of transparency/trust affected these judgments, but we should not dismiss
the possibility that they did. (Hemmington,2016). On the other hand, NOA’s research tends to
hire more outsourcing people for their organization. So, these two types of scenarios create some
mixed questions regarding why a company should be more transparent to its outsourcing partner
to get more benefit from these. In that case, the company and the outsourcing party need to be
transparent with each other regarding any issues. For example, the company needs to get the
balance right. The company needs to provide a good amount of hourly wage system or they can
provide a monthly wage. There need to be some policies by which the company will handle the
outsourcing partners and solve disputes if it happens. A smooth contact system with the
outsourcing partner is important. On the other hand, the outsourcing partner needs to be ethical
about his ability to complete the tasks that he is assigned. He/she needs to be disciplined about
the deadlines of his work. He should be transparent from his side regarding any issues that can
help the company to improve more. So, certainly, it is worthwhile to seek greater transparency,
not just to explore new methods to produce value, but also to demonstrate that outsourcing can
compete with the financial flexibility that organizations may now find appealing with the self-
provide model. (Hemmington,2016).

Therefore, it can be said that transparency is really important for both sides when one is
providing an outsourcing service and the other one is taking the service. Ethical, disciplined, and
proper policies can lead both parties to better transparency which might be beneficial for both
sides.

 Reputed Outsourcing Service Provider:

From above we understand that outsourcing is a part of business practice where a company takes
support or service from another company who provides services like recruitment, IT, Legal,
Advisor, graphic design, VAT etc. Companies can get these services through a period of more
than one year contract with an outsource party or sometimes they can do it on work basis.

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Outsourcing is becoming more popular nowadays because it is more cost effective in a short time
and small entrepreneurs get a path to start a small business with a wide range of jobs. Above it
has been mentioned that we will be taking outsource service for Customer Service, Packaging
Service and Marketing/advertising.

 Customer Service: Rather than keeping someone in house for providing customer
service it would be great to give this job role to a third party who focuses on providing
customer service only. Akij Group is a renowned company in Bangladesh and Akij
Plastic is one of the major lines from others. Hence the target market is huge and when
the customer number is huge, their customer services should be top notch. There are
many third parties who do the job of customer service, such as Skytech solutions, Genex
Infosys, Digicon Technologies and others reputed service providers. I will be leaning
more towards Genex Infosys as Genex is a leading outsourcing company in Bangladesh,
with a multinational team of experts. Their current client list consists of corporations in
the Telecom Industry, Banking Sector, Government and Retail Industry (ASL BPO,
2017).
 Product Packaging/Design: Outer design or overall packaging is an important part for
any brand to attract customers. In the market customers gravitate to the product which
has a unique color or shape. Hence product packaging is one of the most important parts
for any brand's product. It also takes more analysis and time. To save time and for more
effective results it is better to do the task of packaging through outsource experts such as
product designers. In Bangladesh firms that provide product and package designs are
very limited. Normally product design can be outsourced through freelancers. Which is
more cost effective and freelancers will focus on delivering that one project on time.
Most of the time it doesn’t take more than one party at a time. So, for my product
packaging I will take service from a freelancer. There are some authentic sites where we
sources of skilled and experienced freelancers can be found, such as dribble, clutch.
 Marketing/Advertising: Akij plastic has major competitors in the market such as
RFL. To survive and reach more customers they require strong advertising or
marketing of their products. Without marketing customers will not know about our
product's USP and visibility. Rather than having an in-house marketing team it is
better to outsource benefits from marketing agencies because they are more project

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 specific, Cost-Effective, specialist and have more resources to analyze market
demand (Semrush Blog, 2022). For Akij I would like to get the outsourcing benefit
of advertising through digital marketing companies such as Bizcope. For twelve years
Bizcope has been providing services such as digital marketing, ad campaigns, content
marketing, and influencer marketing.

 Right Partner for Outsourcing:

Though outsourcing is a shortcut effective way for any company to get various benefits, there are
some factors which should be in mind when looking for an outsourcing service provider. Such
as:

 Identify Job Scope: Before taking support for any service management, I should find
what actually we require, possible solutions and proper SWOT analysis. Through these
three components we can find if outsourcing will have any impact on revenue or any
negative result and problem-solving roadmap (business.com, 2022).
 Cost Analysis: There must be a cost analysis before making any decision. Cost analysis
gives the probability and helps to decide on best options. I should have a budget which I
am confident of investing in my outsourcing partner. These budget planning must be
communicated and agreed by both parties.
 Flexibility: One of my priorities will be flexibility from my outsource party. There are
times when certain tasks don’t follow the actual date and require urgent support, in
business these happen a lot. So I will need a third party who is more flexible and
considers these types of situations in a more positive perspective. When we search for an
outsource partner we must look for one who has more flexibility in agreement or
contract. There must be a contract with a third party before we start business with them.
All expectations, privacy, payment, time period must be visible in agreement. So, I need
someone who will take responsibility with flexibility and proper privacy.
 Third Party Brand Value & Expertise: When sourcing a third party I must find
someone who has a good market reputation. Must research if they have any bad records
with previous clients like consistently delay project submission, bad final products. Also I
got to figure out if the firm is capable enough to take my requirements and deliver it with

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 priority, which most of the time depends on how they get their resources. It is also
important to track if they have enough resources to take my project. Most oblivious part
from a third party is that they must have manpower who has relevant skills, knowledge
and experience to complete my expectations (business.com, 2022).

 Considerable KPI (Key Performance Indicators):

KPI is a measurable value that can be counted and compared against some benchmark by
providing some business objectives to attain over a specific period of time. In short KPI is a
measure that helps us to know whether we are meeting our goals or not.

Organizations use KPI to calculate their progresses and success of. There are four different
categories’ of KPI. Strategic KPI, Operational KPI, Functional KPI, Leading and lagging
KPI.

 Strategic KPI: This type of KPI is like a performance snapshot of a company.

Executives are more likely use these types of KPI. For example: Labor utilization.
 Operational KPI: Operational KPI mostly focus on time frame. This KPI’s measure
how a company doing by analysis different process and segments.
 Functional KPI: Functional KPI is basically a combination of strategic and operational
KPI. For example: Set a target of production and income for a period of time.
 Leading and Lagging KPI: This KPI describe the nature of the data being analyzed and
whether it is signaling something to come or signaling that something has already
occurred. Consider two different KPIs: the number of overtime hours worked and the
profit margin for a flagship product. The number of overtime hours worked may be a
leading KPI should the company begin to notice poorer manufacturing quality.
Alternatively, profit margins are a result of operations and are considered a lagging
indicator.

As a leader of Akij plastic limited Bangladesh before starting to apply outsourcing, the most
important KPI that I said the company are given below:

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  Labor utilization: Labor utilization is one of the most important. KPI to get the
maximum output labor utilization is must. As I am planning to outsource some work
of the company. So, I have to setup a standard production target. So, that the labor
can perform following this to achieve the desired output.
 Operating income margin: Setting up operating income margin as KPI is also
important. If I can set the targeted income at the beginning of the period it can help
both the employees and executives to monitor whether the company is on the right
track or not.

Finally, as a member of this company I will focus strategic operational and functional KPI
which reflects labor utilization and operating income margin are the most important KPI I
can consider.

 Conclusion:

To wrap up, as outsourcing is increasing all over the world, Akij plastics Bangladesh limited also
decide to involve in this. As Akij plastics outsource some of their works. The first target is to
reach global market where they can justify and minimize their cost. On the other hand, they can
also introduce themselves in the world market. Using outsourcing can help to reduce the
production cost which is very important for the organization. It also improves the focus on
business activities specially on the production quality. As some of the works have outsourced so
that the workers can concentrate on core works which makes them skillful and also improve the
efficiency of the work. By outsourcing some works Akij also can attain their objectives because
they can get their works done less than their regular cost. Outsourcing of some services can also
reduce costing and increase efficiency of work. Services like packaging, legal affairs and
advertising can be outsourced with a low costing. This can help the employees to focus on the
quality and quantity of the product. Overall outsourcing can help Akij plastic limited Bangladesh
to create a good stand both in Bangladesh and global market.

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References:
1. ASL BPO. (2017, December 13). Top 10 BPO Companies in Bangladesh.
https://www.aslpreservationsolutions.com/top-10-bpo-companies-in-bangladesh

2. Semrush Blog. (2022, April 7). 7 Reasons Why Companies Use Agencies to Outsource
Marketing. https://brainhub.eu/library/how-to-find-outsourcing-company

3. Business.Com. (2022, September 7). Choosing the Right Outsourcing Partner.

https://www.business.com/articles/choosing-the-right-outsourcing-partner/
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