The main purpose of this dissertation proposal is to determine whether outsourcing has any effects on cost and labour in an organisation. Outsourcing has many effects to both the organisation and the consumer. The effects can be both negative and positive. This mainly depends on the considerations made by the organisation before it embarks in outsourcing. Enough inquiries should be made before a company decides to outsource to another firm. This research will help industries decide on when it is necessary to outsource, the benefits and the limitations. Though there might be short-term price benefits, there are lasting costs connected with reduced edification of workers, less devotion of the employer and reduced employer devotion. This research seeks to understand the effects of outsourcing on cost cutting and labour. Outsourcing depends on the different business situations that different industries have. Before any organisation sets-off for outsourcing, assessment and careful planning are considered a necessity for any industry.
In conclusion, empirical results on the relationship between outsourcing to cut costs and labour present that there are mixed results and impacts on different industries. The expected performance result of outsourcing was tested and the outcome illustrated efforts by industries to slash costs by mechanizing the business tasks in existence. The results showed unenthusiastic irregular returns. The analysis has shown incompatible outcomes on how tactically stimulated outsourcing influences an industries presentation.