Abstract
M.Com. (Business Management)
The global economy has over the past decades undergone radical changes. The South
African economy has not been immune to the changes taking place globally. The
pressures on competitiveness add urgency to the search for greater effectiveness. Most
managers know that few decisions, such as operational strategy, problem solving and
performing core competencies are more critical decisions than the selection of the
customers to be served. In today's competitive world, successful outsourcing is a
powerful tool for organizations of different sizes to be cost-efficient, increase flexibility,
services and productivity, to focus on core competencies and rely on outsourcing
vendors/partners to supply the non-competencies, to gain monetary benefits, add value
and gain competitive advantage over rivals. Therefore outsourcing Is one of many
business tools that may also be available and applicable to small businesses to gain a
competitive advantage over rivals.
The primary motivation for this study stems from the relevancy of outsourcing as a
management tool, and whether outsourcing could also be applied in small business
management, and hence this study attempts to examine the possible merits for small
businesses to consider outsourcing as a management tool. Further, the researcher
hopes to show in this study the principles on which good outsourcing decisions may be
taken to benefit the small businesses and the Involved parties in the outsourcing
arrangement. Hence the primary objective of the study is to determine the merits of the
small business sector to utilise outsourcing as a business tool, and the supporting
secondary objectives are to research the concept of outsourcing: to explain the rationale
in outsourcing and all its manifestations, to research the concept of the small business
sector, its major needs, challenges and threats, and to deduce from the results
achieved In the above mentioned areas, possible merits for small businesses to
consider outsourcing as a management tool.