Answers For [Actual Test] - Company Outsourcing

Lecturer: Welcome class to your very first lecture in this series on business in the modern world conducted by myself, doctor Toby Bennett. Today, we will be looking into the practice of company outsourcing using TCP Technologies as a case study. Now, for those of you who are unfamiliar with this practice, I will give you a summative definition. Company outsourcing involves the contracting of various business activities by one company to another. This practice will sometimes occur from a Western company to a party based in a third world country, the rationale being to make significant financial savings on lower international labor rates and to potentially increase quality.

Our case study for today is TCP Technologies, a party located in India that receives outsourced tasks from Western companies. The manager of TCP Technologies is Manjeet Khanna, who has developed a series of aims and philosophies by which the company is expected to operate. 1He claims that the most important of these philosophies is to create a workplace where each individual member has the opportunity to contribute their opinion to the operations of the company. That is to say that he found it important to develop a democratic environment.

As a means of ensuring quality from every individual at TCP Technologies, a grading system has been developed that encourages an ethos of hard work and recognizes accomplishment. This grading of individuals is based on factors such as turnover, hours worked, and efficiency. 2Every month, Khanna publishes the grades on an internal website where staff can access not only their own grades, but also compare it to others. A spirit of playful competitiveness has developed through this method, resulting in increased efficiency and turnover across the company.

Khanna also saw it as essential to develop a culturally diverse group of employees as a means of presenting a multifaceted image that would appeal to potential employees across the globe. This cultural openness has increased incoming contracted opportunities by 7% and has significantly benefited the company itself. 3A level of transparency now exists that had not before been apparent. 4According to recent questionnaires, these newly introduced measures have significantly increased staff satisfaction, which has subsequently led to an increase of 32% in the company’s income.

These figures are admirable and demonstrate the impact of Khanna’s changes to the workplace at TCP Technologies. In an interview published by The Economist, he stated, “The figures speak for themselves. My system works.” When asked for advice for companies seeking to streamline workflow and increase turnover, he replied that a company must see itself as a living organism composed of essential cells rather than as one entity of nameless components. 5I suggest that the motto by which your management operates will be employee first.

Many benefits have resulted from the new management style, such as a significant decrease in staff turnover, solving many previous problems. 6A lot of these improvements came from the realisation that the solution does not have to be produced internally, but can come from any other company. The grading system has also enhanced company dynamics. 7The fact that this measuring system is solely produced for staff members and inaccessible by management means that it cannot be used as a judging criterion for promotion. It has proven to be a relaxed and informal way of stimulating workflow.

Khanna also considers it important to respond personally to any complaints filed by staff members. Finding the previous complaint system ineffective, he introduced a new online system that created a direct line of communication between himself and all employees. 8The complaint form, dubbed by Khanna as a ticket, eradicates the middleman, is easily accessible to all employees online, and has an interface that can be instinctively navigated. 9Any staff-related complaint, such as those relating to air conditioning and food quality, can be submitted directly to Khanna via this online system. Entitlement to vacation is also a popular issue discussed through this forum. 10The main benefit of using the system is that staff must include their personal details on the ticket before submitting it. In the past, anonymous complaints had caused confusion and wasted many work hours, so the new system has banned this form of complaint.

That wraps up the lecture for today. Please remember that attendance is mandatory.