Proposed_Research_Topic__Business_Services_Offshoring__Hong_Kong’S_Transportation_Service_Providers_Situations

Research Proposal Proposed Research Topic: Business Services Offshoring: Hong Kong’s Transportation Service Providers situations Benson P December 06, 2010 Contents 1.Background 2 2. Introduction 3 3. Research Objectives 4 4. Research Approach 4 5. Time and Action Plan 5 6. Resources 6 7. References 6 8. Appendix 7 1.Background A number of recent technological developments have made it increasingly possible for companies to offshore their business services abroad (Amiti, M and Wei S.J., 2006) and (Antras, P., L. Garicano, and E. Ross-Hansberg, 2004). Some tasks such as data entry, data systems upgrades and maintenance, or customer call centers are commonly done offshore in many international Companies. Broadly, routine tasks are offshored, while more complex tasks are done domestically (Antras, P., L. Garicano, and E. Ross-Hansberg, 2004). . However, until now, many service that were noted as non-trasnferable, have become transferable, and take place in other countries abroad (Amiti, M and Wei S.J., 2006) Much has been written in the first decade of 21 century about offshoring. In view of the extent of offshoring has been commonplace now in Hong Kong, especially in the shipping industies. For example, Maersk Line has already moved it’s documentation and customer service tasks offshoring in China. The document proposed to concentrate on the offshoring situation and offshoring factors in the transporation service provider (TSP) in Hong Kong. Further to this, the research work will forcus in below areas: the extent of which characterisics of services are being offshored the most important reasons for the offshoring services jobs the most important factors for choosing the offshoring location the impact of the offshoring future plan for offshoring 2. Introduction Offshoring describes relocation by a company of jobs and production to a foreign country. The relocated jobs and production could be at an office in other country, but of the same multinational company or at a separate company located abroad. Contrasted with outsourcing, which does not necessarily means that jobs and production and relocated to a foreign country (Garner, A.C., 2004). Outsourcing describes the products or services are provisioned by an outside company (Bryce, D. and Useem, M. 1998). In other words, outsourcing can be defined as turn over all or part of an company activity to an outside vendor. (Barthelemy, J., 2003) Adam Smith (1776), cited by (Grossman, G.M., Rossi-Hansberg, E., 2006) & (Grossman, G.M., Rossi-Hansberg, E., 2007), famously described the division of labor in a pin factory in late eighteenth century of England: One man draws out the wire, another straights it, a third cuts it, a fourth points it, a fifth grinds it at the top for receiving the head; to make the head requires two or three distinct operations; to put it on, is a peculiar business, to whiten the pins is another; it is even a trade by itself to put them into the paper; and the important business of making a pin is, in this manner, divided into about eighteen distinct operations, which in some manufactories, are all performed by distinct hands, though in some others the same man will sometimes perform two or three of them. At the time, in order to achieve high productivity in production, concentrate the various diversity of tasks is needed for producing a good under a single roof. By specify in one or a small number of tasks, each labour can concetrate his energy and hence perform most efficiently (Grossman, G.M., Rossi-Hansberg, E., 2006). Due to the new technologies nowadays, the different business processes can inputs abroad in other country (Amiti, M., Wei, S., 2006). According to (Garner, A.C., 2004), the factors that driving the offshoring in the recent trend are as below: Economic factors Low production costs in foreign countries (labor costs) Technological factors Technological advances (e.g. in computers and telecommunications) Regulatory factors Many Countrues started to reduce the restrction within the countries. Characteristics of jobs most likely to be offshored (classified by (Garner, A.C., 2004): Labor-intensive jobs Information-based jobs Routine (step-by-step) jobs Jobs with high-transparency information 3. Research Objectives To evaluate the current situation of offshoring of Transportation Service Provider in Hong Kong To evaluate which services tasks for Transportation Service Provider are currently stay in Hong Kong, and not tends to offshore To draw conclusions about the applicability of offshoring of Transportation Service Provid er in Hong Kong 4. Research Approach Personal interviews will be used to generate the information to answer the research and for finalize the survey questionnaire After the completion of interviews, the research will be carried out by conducting a survey questionnaire to collect data. The survey will be preliminlary developed based on below: the reasons of services job moving offshore (Garner, AC, 2004) the factors in choosing a Location of offshoring (Farrell, D, 2006) (details in appendix 1) since outsourcing and offshoring with many similarities, the survey will also based on the questionnaire by Sohail M.S. and Sohal A.S. (2003) The prelimilary questionnaire will be based on the three reseachers’ theory. After modifing and adjustment, the questionnaire will have 5 parts, as below: the extent of which characteristics of services are being offshored the most important reasons for the offshoring services jobs the most important factors for choosing the offshoring location the impact of the offshoring future plan for offshoring The sampling population would be drawn randomly in the “Hong Kong and China Carrier / Forwarder Directory” from Shipping Gazette, publised by HKSG group. 5. Time and Action Plan The research should take seventeen (19) weeks to complete. Three (3) weeks will be required to perform the preliminary work of literature review, survey preparation, respondent identification and interview guide development. Three (3) weeks will be needed to find assitants and to initiate the literature review. Two (2) weeks to interviews with selected companies. Seven (7) weeks will be required to finialize the survey questionnaire, distribute the survey, analyze the results and develop the findings.Four (4) weeks will be needed required to prepare the final draft of the research report. Activity Description Duration (Weeks) A Select assistants 1 B Read Literature 2 C Select company and do personal interviews 2 D Develop final questionnaire 1 E Administer questionnaire 4 F Enter data into computer 1 G Analyze data and developing findings 2 H Prepare draft report 3 I Revise draft, format for submission 1 J Presentation for Final Report 1 K Print and submit 1 Figure 1. Gantt Chart for the proposed research 6. Resources Two to three support assistants will be required to cooperate the research project activites, take part in the interview, coordinate with companies and data inputting. 7. References [1] Antras, P., L. Garicano, and E. Ross-Hansberg (2004): “Outsourcing in a Knowledge Economy,” Mimeo, Harvard University. [2] Sohail, M.S. and Sohal, A.S. (2003). “The use of third party logistics services: a Malaysian perspective.” Technovation. 23 (5), 401-408. [3] Garner, A.C., (2004), “Outshoring in the Service Sector: Economic Impact and Policy Issues”, Federal [4] Farrell, D., (2006). “Smarter offshoring”. Harvard business review, June 2006. [5] Amiti, M., Wei, S., (2006). “Service offshoring, productivity and employment: Evidence” from the US. CEPR Discussion Paper, No. 5475. [6] Grossman, G.M., Rossi-Hansberg, E., (2006), “Trading Tasks: A Simple Model of Outsourcing,” National Bureau of Economic Research working paper no. 12721. [7] Grossman, G.M., Rossi-Hansberg, E., (2007). “The rise of offshoring: it’s not wine for cloth anymore. In The new economic geography: effects and policy implications.” Jackson Hole: Federal Reserve Bank of Kansas City. [8] Bryce, D, and Useem, M. (1998). “The impact of corporate outsourcing on company value.” European Mmanagement Journal, 16, 653-643 [9] Barthelemy, J., 2003. “The seven deadly sins of outsourcing”. Acadmemy of Management Executive 17 (2), 87-99. 8. Appendix Appendix 1: -Factors for choosing the offshore location (Farre, D, 2006)