Transformations  in
Business & Economics

THE BUSINESS OUTSOURCING IN TELECOMMUNICATION INDUSTRY: CASE OF PAKISTAN
Rizwan Raheem Ahmed, Jolita Vveinhardt, Nawaz Ahmad, Mirza Mujeeb

ABSTRACT.The global trend of outsourcing in telecommunication industry demonstrates the reduction in overall costs and a need to be more competitive in the international market. This paper analyzes the outsourcing phenomenon and its impact on the cost of doing business in telecommunication business in Pakistan. In this regard different reasons have been examined as correlation and multiple linear regression methodology has been applied to check how the reasons correlate. In this regard the SPSS software has been used to analyze the dataset and to come to methodology-based conclusions. Statistical quantitative tool like correlation and multiple linear regressions were used in this paper. The results of the findings reveal that some of the reasons are strongly positively correlated or negatively correlated if they include negative characteristics as business risk and disadvantages. The Multiple linear regressions show that the only two reasons - critical drivers and benefits - met by outsourcing in telecommunication (BMOT) are statistically significant. They relate to cost reduction of day-to-day operation, optimization of capital expenditures, heading of count control, flexibility, and access to new technology. They also acquire new capabilities, complement existing know-how, reallocate and focus on resources and have a positive impact on telecommunication businesses in Pakistan

KEYWORDS: telecommunication industry, business outsourcing, critical drivers, correlation, multiple linear regressions.

JEL classification: C12, L96, M55.