This study aims to compare the outsourcing and being outsourced activities of Vietnamese universities. It is a new topic and there is not a single article mentioned or available. The research has selected a number of articles related to outsourcing to be able to collect data and give specific factors for the research paper. Research results shows that outsourcing and being outsourced activities are growing. In particular, the element of changing the mindset and even the new mindset in business is really more necessary for businesses today as they are also fighting outsourcing and being outsourced.
Research Overview
Outsourcing is simply understood as the migration of business processes within the organization to external service providers. In essence, this is a strategy of excluding non-core competencies to focus resources on the main businesses of the enterprise. Logistics outsourcing is the use of external service providers (2PL, 3PL, 4PL) on behalf of the business to organize and implement activities [1].
First of all, outsourcing helps to reduce investment capital and reduce costs, because logistics service providers have good technical and technological facilities, the ability to meet diverse customer needs on a large scale, should be achieved. economies of scale that can provide the same service at a lower cost than a do-it-yourself business
Help improve customer service
Developing relationships and strengthening management skills requires developing communication skills and cooperation with many logistics service providers and other businesses involved in the business
Increasing access to information in an ever-changing environment requires not only sharing information, but also capturing and analyzing external environmental information well, helping to promote better adaptation of businesses. In the above benefits, the ability to reduce costs and improve service quality are the benefits of enterprise top concern
Urgency Of the Research Problem
Van Hien University is growing by using outsourced services. The school contracts with teachers and supports students in many ways, creating conditions for everyone to learn. Van Hien University was established on July 11, 1997 by the Prime Minister and operates under the model of a private school. The school always applies practical training programs, focusing on developing foreign language abilities and soft skills for students. Over the years, Van Hien University has constantly expanded its network of links with prestigious schools and organizations around the world to bring students to study and work. Through 21 years of establishment and development, Van Hien University has created trust for learners and is considered as a prestigious university training institution in the system of Vietnamese universities. The school's lecturers, in addition to people with high professional qualifications, also have lecturers who are leaders and managers of organizations and businesses, so the lectures for students are boldly applied and practical [2].
Research Significance for Van Hien University
Currently, in order to increase productivity and improve service quality, many businesses and schools have outsourced services, such as marketing and consulting. Outsourcing will also bring many benefits to Van Hien University such as [3]:
Reduce and better manage costs: materials and equipment for classrooms, salaries of lecturers, laborers, security guards. costs of installation and repair of school supplies
Improve the main expertise for the school: improve the quality of teaching and learning for teachers and students
Expanding internal resources of the school: in addition to teaching and learning, the school can create employment conditions for students, there are many scientific research works
Improve the quality of time-consuming work: supporting students to register for a course increases access to the portal instead of paying the registration fee, helping students to be proactive. study time and place, as well as select lecturers suitable for learning ability, improving learning quality
Make the most of external resources: instead of paying huge costs to train new employees for a job that requires a lot of experience and high productivity, outsourcing the service will solve the problems. That's for the school
Help share risks with partner companies when facing business difficulties
School A ại Literature Constitution if there were factors such as: How clear the objectives of the business, vision and strategy overview, make commitments and contracts closely, there relationships with stakeholders, Intervention and support of experienced managers, Concerned about human resource issues, Short-term financial proof. The implementation of Outsourcing will help the school save a lot of costs, earn high profits to improve the quality of teaching and learning for students. Along with the successes, there is also a risk when outsourcing to the school, which is the confidentiality of information and records of the school, stakeholders and cooperative businesses. And the quality of work when outsourced will not be as sure as the school's desired requirements. To improve this, the school should sign contracts with reputable service outsourcers. Outsourcing to Van Hien University is also a challenging step, but if successful, it will also bring many benefits to the university [4].
Objectives Of the Study
Research on outsourcing and outsourcing for Van Hien University in order to help the university find the most optimal costs in the management and use of internal and external resources
Help students better understand concepts like outsourcing, the areas of application of service outsourcing, benefits and disadvantages to outsourcing and outsourcing
Awareness of the importance of outsourcing for businesses and education today. Not only because businesses lack resources but also the advantages that outsourcing brings today
Capture and better understand how outsourcing will bring benefits in the near future, as well as the points to overcome the risks of outsourcing
Outsourcing And Being Outsourced in Business
Outsourcing is the practice of allocating parts of a business process to professional service providers outside the company. Most organizations cannot handle all activities in the business process chain on their own. In addition, some processes are temporary and businesses do not intend to hire people to do these tasks themselves, then businesses can choose to outsource personnel. When you hire external service providers, they will be responsible for getting the job done and protecting your assets. However, before hiring a third party to handle any work, we need to understand the pros and cons of outsourcing. While outsourcing brings many benefits to an organization, it can also create difficulties if the right service provider is not hired [5].
Outsourcing And Being Outsourced in Higher Education Institutions
Outsourcing can be understood as using an external provider to provide services to a company, services that companies cannot provide on their own, or cannot provide the most cost effective. There are two types of higher education institutions:
Public higher education institutions are invested by the State, ensure operating conditions and represent the owner
Private higher education institutions invested by domestic or foreign investors, ensuring operating conditions
Most of the systems of private higher education institutions use outsourced services to reduce costs and increase labor efficiency... Indeed, no less than 70% of institutions share the same thought that the Outsourcing is the right thing to do and should be included in their long-term strategy. Create an educational institution together with investors, hiring lecturers to teach the school to create jobs and help students in having clear access to knowledge in subjects that teachers specialize in. with inexperienced people. All equipment, machinery and systems must use outsourced services to ensure quality and quantity when in use, reduce risks and costs when damaged, without having to search for a repairman because there is a service. Outsourcing is an investor who has signed a contract with the school [6].
Advantages And Disadvantages of Outsourcing and Outsourcing to Higher Education Institutions
Any other business activities including t the increase in addition, there are both good and bad side. In most cases, outsourcing offers businesses more benefits than disadvantages.
Beneficial
Fast and professional: Most of the tasks are assigned to experts in their field. These professionals possess specialized equipment and are technically proficient. Sometimes, their equipment and techniques are much superior to the rental unit. As a result, work gets done faster and more efficiently
Focus on core activities: Outsourcing support activities gives the organization more time to strengthen core activities
Shared risk: One of the important factors in determining the outcome of a project is risk. Outsourcing certain parts of the business helps the organization to transfer certain risks to those companies that are hired. Since the outsourcing company is an industry expert, there is a better plan to reduce risk [7]
Reduce operating and recruitment costs: Outsourcing is a way to avoid the need to hire employees; For this reason, outsourcing will help keep recruitment and operating costs as low as possible. This is one of the biggest advantages of outsourcing
Disadvantage
Security: is the issue that many CIOs are most concerned about. They fear that outsourced employees will reveal the company's information to the outside, even to competitors
Responsibility: supplier irresponsibility, delay and failure to provide employees with the necessary quality will disrupt the work of the business
Quality: this is often a matter of transition from in-house to outsourced services. In the first time (which can last a whole year), the outsourced staff does not know the system of the business, causing delays in solving problems or errors
Data Sources and Methods of Income
Data sources
Secondary data source: is data collected for other purposes, the researcher reuses for his research
By specialty: Documents in the industry, outside the industry and mass communication related to the topic
According to documents: Types of reports, articles, books, databases, initial investigation results
By space: Libraries, Internet, government reports, ministries, branches, representatives of scientists
Primary data source: is the type of data collected by a researcher from primary sources, using methods such as surveys, interviews or experiments [9]
Investigate and survey the issue of buying (outsourcing) by investigating through available documents found through books, newspapers, search engines
Database
Unprocessed survey researched by economists but not officially recognized
Income method
References through books related to the topic and reputable websites on the Internet
Experience on outsourcing and outsourcing of the school
Non-experimental
With secondary: Research documents
For elementary level: observation, interview, group discussion, survey
Research Methods
Qualitative methods: based on the perspective. Own experience, practical and historical events
Quantitative method: using measured and observed quantities to test research hypotheses
Research process
Identify the problem and goal of comparing outsourcing and outsourcing of Van Hien University
Developing a research plan:
Divide the problem into many aspects to study;
Division of work for members to find out information, look up documents
Collecting information through document lookup, survey and investigation
Analyze information to draw out the necessary content for the essay
Present the results obtained in the essay [8].
Benefits And Disadvantages of Outsourcing Activities At Van Hien University
Benefit
Highly specialized: Work assigned to a third party helps businesses focus on developing their expertise. Thereby helping to save time, money, promote business development better.
Minimizing costs: The cost for outsourced services is usually lower than the cost of building a working structure in the enterprise and also saves costs and training time
Access to advanced technology: In the era of booming technology, businesses must constantly update and be exposed to many technologies if they do not want to be outdated. However, investment in technology requires a large amount of capital. Outsourcing will help businesses solve the above problems
High labor efficiency: Outsourced service providers actively coordinate human resources to complete the work, making the most of resources to increase labor efficiency
Saving working space (warehouse): When using outsourced services, it is not necessary to invest in an office such as a desk, chair, computer, etc. or a warehouse to store goods
Ensure work is always run efficiently: In case the company's official employees apply for leave or there is a problem in the delivery and delivery... the outsourced service will ensure that the work is operated efficiently and without interruption
Backup: With a large number of outsourced service providers, they easily ensure that customers are always served continuously, minimizing the risk of disruption when operating
Disadvantage
About security: Outsourcing services may disclose confidential company information to the outside
Responsibility: If the supplier is irresponsible, late, or does not provide enough services as required, it can disrupt the operation of the business
Quality: In the first time using outsourced services, when the partner does not understand how the business operates, it can cause delays and interruptions in work
Costs: If the contract with an outsourced service provider is not tight, it can incur large costs for the business
Benefits And Disadvantages of Outsourcing Activities At Van Hien University
Benefit
Flexibility in the use of resources: When there are arising activities, enterprises can easily coordinate resources to quickly solve the situation
Saving, reducing costs: Save time searching and agreeing between parties, reduce costs such as warehousing, redundancy, etc. when it's off-peak
Quality assessment: Have time to observe, examine and evaluate the quality of the resources at no extra cost
Resource development: Have the opportunity to cooperate, develop with parties, promote business development
Earn extra income: Outsourcing such as leasing yards or classrooms, etc., when off-peak, helps to increase income
Disadvantage
Passive: If there are no reasonable preparation plans, when an incident arises, it is easy to affect resources from the lessor
Disputes over resources: When used together, the parties are prone to disputes
Loss of vital resources: Partners have the opportunity to access enterprise resources, facilitate contact and learn, leading to the possibility of losing important resources
Damaged: Failure to agree on reasonable outsourcing terms may result in damages resulting in repair costs
Take Advantage of Benefits and Overcome Disadvantages in Outsourcing By Van Hien University
The use of outsourcing services will be more beneficial to the school because c hi charge outsource lower than using internal staff capitals save time by transferring the job to the service, the school can optimize and take advantage of the internal human resources to focus on core values in business operations its main and transfer of non-core work to external partners. This will help businesses save time and reduce costs. Besides the benefits that it disadvantages for hiring foreign main leaking confidential information of the school and how to fix it is the school will use the service to outsource jobs as importantly, does not require information confidential or write an agreement on the issue of confidential information with outsourced services and ensure the flexibility.
Outsourcing will bring many beneficial partnerships for the school and also contribute to creating jobs for many workers. In addition to those benefits, the main disadvantage is the need for dynamic employees who know how to grasp market trends well [10-22].
Research results on comparing outsourcing activities of Van Hien University by statistical methods, synthesizing, comparing and collecting data. Factors of benefits and disadvantages have been stated quite specifically, in which the issue of cost… is the most important factor. The level of using outsourced services of enterprises shows that the relationship factor and the benefits as well as the risk factor in outsourcing have a strong impact on the level of outsourcing. Therefore, in order to improve the efficiency of using external resources, enterprises must have a plan to check and control the activities of service providers. In addition, the parties including the lessee and the lessor need to pay attention to building a good relationship for long-term cooperation. In particular, for service providers, it is necessary to prove themselves as a good and reliable partner in order to bring the highest benefits and minimize risks for businesses using outsourced services.
This result can be used by outsourced service businesses for reference. The field of research topics on comparing outsourcing activities of Van Hien University needs to be expanded in terms of research scale, conducting actual surveys to compare and present results in a timely manner. more complete and accurate.
Currently, in Vietnam, the demand for outsourcing and outsourcing services of enterprises is not popular, but tends to increase. These two activities are also being applied by Van Hien University, but outsourcing activities of Van Hien University are higher than outsourcing activities.
The study introduced the most basic knowledge about the difference between outsourcing and outsourcing activities in business, in educational institutions and especially at Van Hien University, contributing to creating a foundation knowledge for those who are interested and want to learn about this issue.
At the same time, the study has also pointed out the benefits and disadvantages of outsourcing and outsourcing to higher education institutions in general and Van Hien University in particular so that readers can have a correct view. and most accurate. More specifically, the study also proposes some recommendations and solutions to help Van Hien University become more stable and develop. However, due to time constraints as well as no practical experience, the study cannot cover the entire situation of outsourcing and outsourcing, but only focuses on collecting information sources from different sources of newspapers and magazines related to the topic. But it is hoped that the solutions given in this study will partly contribute to the improvement of rental and rental activities at Van Hien University today.
Recommendations And Suggestions
For the board of management of Van Hien university
The Board of Rectors and the Board of Directors need to come up with correct and transparent policies on outsourcing and outsourcing activities and arrange them appropriately with the school's activities
Clearly assign work to department heads to limit errors in the best way, to approve recommendations from department heads in an equitable manner, in the best interest of the school
For the heads of departments of Van Hien University
Comply with the instructions from the Board of Rectors and the Board of Directors strictly and at the same time organize the assignment for officials, employees, lecturers, researchers clearly, need constant updating, accurately the issues of outsourcing and leasing activities so that they can be presented to the Board of Rectors and the Board of Directors if an unexpected situation occurs
It is necessary to make reports with clear cost statistics for the easiest approval by the Board of Rectors and Board of Directors
For executive staff/lecturers/researchers at Van Hien University
Strictly follow instructions from superiors, immediately report to the department heads if there are any shortcomings in hiring and outsourcing at Van Hien University
Solutions To Improve Leasing and Outsourcing Activities At Van Hien University
Van Hien University needs to be more proactive in outsourcing, must be very careful when making the final decision, in order to ensure the greatest benefit of outsourcing - cost effectiveness and achieve the same results. expected. Prioritizing experienced units and owning a team of reputable experts will be the solution "to eat and wear durable". Because employees are the factor that makes a unit fail or succeed
Van Hien University needs to think about strategies to retain good people such as how many benefits will long-term employees enjoy, worthy remuneration policies
Van Hien University should make sure to keep track of information and requests from outsourcing to ensure that no information is omitted
Van Hien University can train and coach good students right at the campus. Open contests to find good students and invite them to work immediately after graduation
Van Hien University should regularly open small internal contests to reinforce the problems and knowledge that employees lack
Some companies should outsource products and services to increase the university's income and benefit students
"5 Principles to know when writing scientific research objectives." Available at: http://phantichsolieuyhoc.com/5-nguyen-tac-can-biet-khi-viet-muc-tieu-nghien-cuu-khoa-hoc/. Accessed on 13/07/2020.
"Structure of a scientific research project." Available at: http://yrc-ftu.com/cau-truc-mot-de-tai-nc/. Accessed on 24/07/2020.
"Should the company do its own market research or outsource it?" Available at: https://khaosat.me/blog/uu-va-nhuoc-diem-tu-nghien-cuu-thi-truong/. Accessed on 19/07/2020.
"Effect of outsourcing strategies on the performance of Small and Medium Scale Enterprises (SMEs)." Available at: https://link.springer.com/article/10.1186/s40497-017-0084-0. Accessed in 2020.
"How to weigh the pros and cons of outsourcing." Available at: https://business.tutsplus.com/en/articles/pros-and-cons-of-outsourcing--cms-28667#:~:text=Thu%C3%AA%20ngo%C3%A0i. Accessed on 20/07/2020.
"Benefits and limitations of outsourcing - outsourcing human resources." Available at: https://vnresource.vn/hrmblog/loi-ich-va-han-che-cua-outoursing-thue-ngoai-nhan-su/. Accessed on 25/07/2020.
"Reasons to use human subcontractors." Available at: http://vinhthuy.com/ly-do-phai-su-dung-tau-phu-nhan-luc-scnwv18.html. Accessed on 20/07/2020.
"How to weigh the pros and cons of outsourcing." Available at: https://business.tutsplus.com/en/articles/pros-and-cons-of-outsourcing--cms-28667. Accessed on 24/07/2020.
"Model for choosing outsourced logistics activities at enterprises." Available at: http://vlr.vn/logistics/news-1538.vlr. Accessed on 13/07/2020.
"Market research: should businesses outsource or do it themselves?" Available at: https://marketingai.admicro.vn/nghien-cuu-thi-truong-doanh-nghiep-nen-thue-ngoai-hay-tu-lam/. Accessed on 13/07/2020.
"Outsourcing examples: companies that outsourced to fuel growth." Available at: https://biz30.timedoctor.com/outsourcing-examples/. Accessed on 13/07/2020.
"What is Outsourcing? Outstanding advantages and limitations that need to be overcome." Available at: https://webdoctor.vn/outsource-la-gi-uu-diem-noi-bat-va-han-che-can-khac-phuc/. Accessed on 13/07/2020.
"Using outsourced services: what should businesses pay attention to?" Available at: http://tapchitaichinh.vn/tai-chinh-king-doanh/su-dung-dich-vu-thue-ngoai-doanh-nghiep-can-quan-tam-nhung-gi-302028.html. Accessed on 13/07/2020.
"Identify research problem." Available at: https://sites.google.com/site/hdvietluanvan/cau-truc-bai-luan-van/van-de-nghien-cuu. Accessed in 2020.
"What is hr outsourcing and outsourcing?" Available at: https://l-a.com.vn/thue-ngoai-va-thue-ngoai-nhan-su-la-gi-2/. Accessed on 22/07/2020.
"What is outsourcing? What is outsourcing?" Available at: https://logistics4vn.com/thue-ngoai-la-gi-outsourcing-la-gi. Accessed on 13/07/2020.
"Why should you use outsourced services?" Available at: https://www.expertrans.com/en/tai-sao-nen-su-dung-dich-vu-thue-ngoi/. Accessed on 26/07/2020.
"Is Outsourcing logistics an optimal decision?" Available at: https://vilas.edu.vn/thue-ngoai-outsourcing.html. Accessed on 13/07/2020.
Tien, N.H. (2020). "Green entrepreneurship understanding in vietnam." International Journal of Entrepreneurship, 24(2), 1-14.
Tien, N.H. and Hoang, N.B. (2019). "Sustainability issues in the modern concept of corporate social responsibility." Proceedings of the 3rd International Conference on Business: “Sustainable business development in the connected age,” 5-6 November 2019, Ho Chi Minh City Open University, Vietnam.
Tien, N.H. et al. (2019). Global Supply Chain and Logistics Management. Academic Publications, Dehli, India.