strategic role of outsourcing on organizational performance

SAEID ESLAMI¹ SED HABIBALLAH MIRGHAFURI² MOHAMMAD ZAREI MAHMOUDABADY³

IOI Code : XYCG-AEACF
Publication : international conference of Management Elites(icme.ir)
Abstract :
    Increase of the prevalence of outsourcing is currently the center of strategic development of most organizations. Today, outsourcing is increasingly used in order to achieve performance improvements of the organizations. Organizations are forced to use modern strategies in order to achieve competitive advantages in today s business world. One of these strategies is the strategy of outsourcing the activities. Outsourcing can be useful in directing the purposes, strategies and programs of the company and makes achieving a better performance, reduction of production expenses and a more share of market possible; in order for the organizations to be better than their competitions and attract and maintain customers, they are forced to promote their outsourcing capabilities. The purpose of this research is to study the outsourcing strategies in the improvement of organizational performance of Iran s Alloy Steel Company from two aspects: creativity and innovation and also efficiency of human resources. This research is practical type in terms of purpose and since managers can use the expected results and its applicable recommendations in the organizational performance of Alloy Steel Company. Research data has been analyzed through some statistical techniques such as Pearson and regression test. The studied statistical society in this research includes the managers of production division and stuff department of Iran Alloy Steel Company which was determined to be equal to 78 persons with a confidence of 95% by using Cochran formula for the sample population. The method and tools in this research are of the preliminary type and the Field research method has been used and the data gathering tool is a standard questionnaire which studies a company in a specific time. The obtained rate for the reliability of the measurement tool was determined to be equal to 0.81. The obtained results were indicative of the confirmation of the significant relationship between outsourcing strategy from the aspect of efficiency and innovation and organizational performance and in addition, it affects the external control and process control.

Keywords : outsourcing competitive advantage organizational performance outsourcing strategies