Factors affecting the firm decision to go for outsourcing

Abstract

This research delves into the effects of outsourcing on the performance of organizations, with a particular focus on the plastic molding manufacturing sector in Lahore. The study adopted a comprehensive approach that included conducting surveys and reviewing a range of secondary materials, such as industry publications, academic texts, and digital content. The primary participants of the study were managers from the manufacturing industry, with data collected from 103 completed questionnaires analyzed using SPSS software. The findings reveal that outsourcing plays a significant role in improving organizational efficiency, mainly by cutting costs, facilitating access to advanced technologies and specialized skills, and enabling firms to focus on their core operations. However, the study also highlights various risks and challenges associated with outsourcing, emphasizing the necessity of effective management practices. In summary, this research sheds light on the strategic advantages of outsourcing in bolstering organizational performance, especially within the manufacturing industry in Lahore