Outsourcing     1 

The perceived benefits of outsourcing of security guards by

financial institutions
______________________________________________________
Researchers:
Abrar Ashraf, MBA (B & F), GIFT University, Gujranwala, Pakistan.
M. Awais Rafique , MBA (B & F), GIFT University, Gujranwala, Pakistan.
Salma Mehmood, MBA (B & F), GIFT University, Gujranwala, Pakistan.
Sitara Arif, MBA (B & F), GIFT University, Gujranwala, Pakistan.

ABSTRACT:

Purpose –  This research is conducted to evaluate the perceived benefits of outsourcing

of security guards by financial sector. Research was conducted on different banks and

money exchanges in different cities. This research is a part of our final project of

Business and Operational research. Our respected instructor Sir Khurrum Aziz Fani has

assigned us this project.

Approach –  we started with unstructured interviews and after little bit discussion we

presented our questionnaire to the respondents and allowed them to complete it by

themselves. The purpose of this structured questionnaire is to analyze the linkage of

perceive benefits with outsourcing of security guards.

Findings –  It was very good experience. We have completed this project successfully.

Main thing that we learn from this project is experience of different financial institutions

such as banks. We have been familiar with environment as well as security and control
 Outsourcing     2 

system of these banks. Except the Bank of Punjab all other banks are practicing the

outsource services of security guards. They have reduced their cost and have increase

their organization values in the eyes of customer by hiring the well reputed and registered

security agencies from all over the Pakistan.

Practical implications –  we have taken data mostly from banking sector. Only one

money exchange has responded to our questionnaire because there are restrictions by

head offices not to share any information regarding their security system. Other financial

institutions are totally ignored. This research will open a new horizon for further

researches in this area. This research will be feasible in deciding to outsource are to avoid

the outsource practices.

Originality – This research indicates an insight of most important perceived benefit of

outsourcing of security guards and also explains the less important benefit of outsourcing

in this department.

Keywords: Perceived benefits, outsourcing, unstructured interviews, structured

questionnaire, horizon, values in the eyes of customer, feasible.

Type of article: Research paper

 Outsourcing     3 

INTRODUCTION

We have to research why financial institutions hire the third party contractor for security

functions and what are the benefits that financial institutions ultimately get or perceive

coming from outsourcing practices of security guards. Main purpose of financial

organizations is to serve and maximize profitability so definitely there are some benefits

because of which they have started the outsourcing of security guards. It is very sensitive

topic. So we have struggled a lot in collecting data. People are not ready to convey any

information in this regard because of present situations of terrorism. After convincing the

managers and assuring them that it is purely for academic purposes we succeeded in

getting their views about the outsourcing of security guards.

Different researches have been launched in this perspective and people have given their

views in this regard. Some have been suggested that the outsourcing is to reduce cost.

Some have been concluded that it is to avail specialized services. Some have been argued

that it is for customer satisfaction. But some have been claimed that the outcomes and

suggested benefits of outsourcing are not sure until there is not effective and intensive

control on outsourced services. If there is not proper control and check and balance on

individuals provided by the third party contractor then their will be some drawbacks and

the organizations would bear the cost of these limitations.

Outsourcing is a subcontracting process such as product design or manufacturing to a

third party company. Outsourcing involves the transfer of the management or day-to-day

execution of an entire business function to an external service provider. The client

organization and the supplier enter into a contractual agreement that defines the
 Outsourcing     4 

transferred services. Under the agreement the supplier acquires the means of production

in the form of a transfer of people, assets and other resources from the client. The client

agrees to procure the services from the supplier for the term of the contract. Business

sectors usually outsourced such as information technology, human resource, facilities,

real estate management, security services, accounting, telemarketing, customer service,

market research, manufacturing, designing, web development, content writing,

ghostwriting and engineering.

A company hires the services of the external party due to several reasons such as

reduction in cost, trained employees, shortage of staff or equipments, better technology,

best service quality, contractor provides you better services relatively quickly than your

organization, able to learn new things, contractors have better repute, to develop better

relationship with other organizations, provides you flexibility as you focus on other

important functions of the organization etc.

Now in these days there is wide scope of outsourcing. In the market there are several

contractors are available who are ready to provide their best services with least cost. So,

many organizations hire their services in order to enjoy different benefits. To test the

perceived benefits of outsourcing of security guards a field study was conducted in the

banks of 7 different cities of Pakistan.

PROCESS OF OUTSOURCING

First step is to decide whether to outsource or not, what type of services you want to

outsource and what is the reason behind your outsourcing. After making decision you

have to get approval from board. A request for proposal is issued to some of the suppliers
 Outsourcing     5 

requesting a proposal and a price. A competition is held where the client marks and

scores the supplier proposals. This may involve a number of face-to-face meetings to

clarify the client requirements and the supplier response.

Top 10 factors in supplier selection

1-Commitment to quality

2-Price

3-References / reputation

4-Flexible contract terms

5-Scope of resources

6-Additional value-added capability

7-Cultural match

8-Existing relationship

9-Location

10-Other

The negotiations take the original Request for Proposal, the supplier proposals, Best and

Final Offer submissions and convert these into the contractual agreement between the

client and the supplier. This stage finalizes the documentation and the final pricing

structure. There is a contractual agreement in which it is written that how the client and

the supplier will work together. This is a legal contract. There are three significant dates

that each party signs up to the contract signature date, the effective date when the contract

terms become active and a service commencement date when the supplier will take over

the services. The transition will begin from the effective date and normally run until four

months after service commencement date. This is the process for the staff transfer and the
 Outsourcing     6 

take-on of services. The transformation is the execution of a set of projects to implement

the Service Level Agreement (SLA), to reduce the Total Cost of Ownership (TCO) or to

implement new services. Emphasis is on 'standardization' and 'centralization'. This is the

execution of the agreement and lasts for the term of the contract. Some outsourcing

contracts contain clauses giving the client the right to benchmark the price paid to the

provider at certain milestones during the life of the agreement. A third party

benchmarking firm is selected according to the terms agreed to at contract signing and

conducts a comparison of the price being paid to current market prices. If the terms of the

contract provide for it, the provider and client may adjust the pricing based on the results

of the benchmark. Near the end of the contract term a decision will be made to terminate

or renew the contract. Termination may involve taking back services (insourcing) or the

transfer of services to another supplier. (Wikipedia, October 2006 )

OUTSOURCING OF SECURITY GUARDS

Most of the organizations outsource the services of security guards from contractor due to

certain benefits. In Pakistan almost all of the financial institutions and other organizations

are outsourcing security guards. The reason of outsourcing the security guards is that

some years before the security guards were indulged in the unionism activities and try to

make exploitations in the institutions. To avoid all these activities all the institutions

decided to outsource the services of security guards. By doing outsourcing not only this

problem was solved also they enjoyed most of the other benefits. There were so many

well reputed companies in the market available to provide their services at low cost as
 Outsourcing     7 

compare to the permanent employees. They hire the retired army or police officers as

security guards. The employees are well trained and know their duties. They make

rotation of the security guards to avoid frauds. Only there are some of the institutions

who are not doing outsourcing.

As for as the history of outsource practices is concerned it was started when the

nationalization of financial institutions were started. This trend was most popular and

adopted while all banks and financial institutions were privatized. At this time almost all

banks were indulged in outsourcing practices of security guards. Main reason was to

reduce costs and to avoid and prevent the mishaps and unionism so that the core

functions of financial institutions would be smooth and flexible. As the security is one of

the integral functions of financial institutions so these banks and financial institutions

have hired the permanent security guards also in order to insure the competitive and

intensive security system. Permanent employees are generally lazy and less responsible

persons because their jobs are secured and their rewards are not linked with their

performance. But there is another extreme that the permanent employees are loyal with

their organization and they have more job commitment as compared to the outsourced

employees.

There are so many companies who are providing the services of security guards such as

Mars Security Guards, superior Security Guards, etc.

Task to identify and elaborate the perceived benefits of outsourcing of security guards by

financial sector is a part of our Business & Operational research course. It got 30%

wattage in evaluation. So we have completed this task and have suggested that what are
 Outsourcing     8 

the benefits and edges that organizations perceive that they can have by outsourcing the

services of security guards.

THEORETICAL FRAMEWORK

The process of moving by organizations to find the expert and specialized services

providers located outside the boundaries of the organizations. (Robert J. Kauffman,

Mani Subramani, Donna Sarppo, 2004)

Six benefits of outsourcing such as; reduce time to market, saving in cost, innovation &

design excellence, more effective problem solving, regulatory compliance expertise and

extended sourcing network, including rapid prototyping illustrate how a product design

team can leverage their own internal resources to more effectively deploy the knowledge

tools that are available in the market place. (Karen K. Greene, 2007)

The benefits of outsourcing are not independent and sure. Organizations should look

beyond the operations to the business benefits that can result from the agreement and the

risks that must be tackled to achieve those benefits. (Robert K. Dell Isola, 2008)

Outsourcer that not only preach but practice measurable environmental, Social and

economic responsibility have enjoyed fiscal returns on their investments and vice versa.

(Brown & Wilson, 2009)

There are many high reputational, operational, strategic and contractual risks involved

while banks perform outsourcing practices. Freeing of resources, reduction in cost, better

services, assess to the specialized contractors, focus on core functions are some benefits

of outsourcing. In Kenyan banking sector ATM is a function which is mostly outsourced

 Outsourcing     9 

while customer account services are less outsourced function. (Dulacha Barako, Peter

Gatere, 2008)

States can achieve a lot of benefits by outsourcing some of their functions to the private

sectors if the agreements are properly conceptualized, effectively implemented,

controlled and monitored in a good way. (Martin Schonteik, 2004)

It is outsourcing rather than computerization which causes productivity benefits. But both

the outsourcing and computerization collectively give more and intensive productivity

benefits. (Christopher R. Knittel, Victor Stango, 2007)

U.S companies can reduce their cost by outsourcing many services from developing

countries and can increase their productivity by hiring highly skilled people to perform

such services which are performed by their own white collared and lazy employees. It

will also save their time and will provide flexibility. (Erik J. Bertin, 2004)

The companies that have announced an outsourcing deal will outperform on average 1.7

per cent higher in stock exchanges benchmarked as compared to the others in the same

market that have not announced an outsourcing deal yet. (Ketie Hine, Devid Vindel,

Jennifer Peters, 2005)

Strategic outsourcing is very beneficial in earning high profits. Also it plays a vital role in

survival in such a competitative environment. Multinational corporations had used this

technique and had considered it as a key point of success. These results are most

significant in Chinese market. Strategic outsourcing is a key factor of cost reduction and

profit maximization. (Mingu Kang, Xiaobo Wu, 2008)

 Outsourcing     10 

Outsourcing is to delegate the responsibilities of an organization to a third party

contractor instead of hiring own staff. Agencies contracted to perform computer

applications networking and software developing is called IT outsourcing. Recently about

all organizations are out sourcing IT services in order to reduce cost and internal staffing

requirements. Main purpose of outsourcing is to provide more focus on core functions of

the organization and to ensure the usage of capital for more productive purposes.

(Ewarenow, 2007)

Partner with the industry leader, financial sector reform act, continue to be paid existing

fees, reduce your operating expenses, enhance your earnings are five key reasons for

mortgage outsourcing. (Daryl Hill, 2004)

Although the benefits of outsourcing reveals the similar outcomes but it is not necessary

that the results of outsourcing will be same in different countries. Results of outsourcing

wary from culture to culture. The limitations of outsourcing can be minimized by

performing effective and controlled outsource practices. (Watson Wyatt, 2004)

92% organizations from all over the world are outsourcing infrastructure management

system. The growth rate of IT outsourcing services will be 11.2% in banking sector while

9% in insurance companies. It means that trend of outsourcing is getting fame in financial

services. Main purpose of hiring trusted third party service provider is to focus on core

competencies. Assistance with organization changes and globalization are also included

in edges of outsource practices. (Cynthia Doyle, David Tapper, 2001)

 Outsourcing     11 

Outsourcing of any service claims a partnership business relationship. So a complete

methodical and documented process is involved in bringing the two parties into a

contractual agreement. (Mark Burr, 2004)

It is very useful especially for mid sized organizations to use the total benefits (TBO)

technique on the road of HR transformation. TBO represents a natural progression for

benefits of outsourcing. It combines the economies of scale with improved and quality

services across the benefits board. (Jeff Miller, 2006)

Large and midsized organizations are practicing the outsource services while small

organizations are less likely to outsource the IT services. (Laura Grehan, 2007)

Cost saving is an obvious issue of outsourcing, but other important considerations include

scalability, security, the availability of expertise for user support and reliability. And,

even beyond that value-added services come into play. (Charles P. Whaley, 2005)

International outsourcing is very fruitful and increases productivity of organizations. But

these positive results are significant only for those organizations those are involved in

exports. It is very useful for exporters because they know that where the the labour is

cheaper and from where they can reduce cost and achieve economies of scale. These

results are not significant for those organizations which are not involved in exports and

do not know the global situations. (Holger Gorg, Aoife Hanley, Eric Strobl, 2008)

There are many benefits of outsource operations in maintenance such as, engineers

supervise engineers, emergencies, improves plant operations, staff qualification,

personnel issues, reduced liability of owners, and reduced employment liability.

(Chuck Reamy, 2000)

 Outsourcing     12 

Once outsourcing is started then there should be mutual trust and respect amongst both

parties also they should be able to work as a team then organizations will be able to

achieve economies of scale and can increase their shareholder wealth. If there is proper

understanding between third party contractor and they are loyal with each other then

outsourcing will be obviously fruitful and beneficial. (Louis M. Scarmoutzos, 2002)

Innovations and continuous growth, cost reduction, latest technology, and expert services

are some of the prime functions of outsourcing. But these goals can be achieved if

contract is aligning returns with performance and the vender is loyal with the objectives

of the firms and motivated to achieve the organization’s goals. (Vinoo Andre Mehera,

2002)

(Trestle Group, 2004)

 Outsourcing     13 

(Trestle Group, 2004)

(Trestle Group, 2004)

 Outsourcing     14 

(Trestle Group, 2004)

(Trestle Group, 2004)

 Outsourcing     15 

(Trestle Group, 2004)

According to the results of outsourcing survey conducted by trestle group in 2004 some

of important issues are given under as shown in above figures.

Ongoing management is most important success factor of outsourcing. Specific skills are

most important consideration while deciding to outsource. Cost reduction is most

important benefit of outsourcing perceived by many organizations. Managing process or

relationship is major challenge to be faced while practicing the outsource services. In

India 70% organizations are practicing the outsource services in next 12 months there

will be 71% organizations indulged in outsource practices.

 Outsourcing     16 

METHODOLOGY

Study Design

To test the perceived benefits of outsourcing the security guards by financial sectors a

field study was conducted in six different cities of Pakistan. Data was collected using a

pre-printed questionnaire. The questionnaire was divided into two sections first section

was related with the general information about financial institutions whereas in the

second section various factors were written down in order to check that which factor was

more focused due to which they are doing outsourcing. Most of the responses were

collected on a five point likert scale.

Data Collection

Total 100 questionnaires were distributed. Research was conducted on banks and money

exchangers in order to check their perception on outsourcing of security guards. There

was no response from money exchanger except one of them named Nobel Money

Exchange from Gujranwala. The reason was that according to them they were not ready

to answer any question due to the company policy regarding their activities. The

remaining data was collected from 99 different banks.

 Outsourcing     17 

Data Collection Methodology

The data was collected by questionnaires. We collected secondary data by using Springer

link and Google. In this perspective university labs were available to us.

In addition to the introduction of the survey we assisted our respondents with the first few

questions and then allow respondents to finish the remaining part by themselves. We

were there to guide them about any question in which they feel problem. The

questionnaire was ended with an open ended statement in which we asked them about

those activities which according to them should be outsource in the long or short run of

the future, only few of them were response to this question so it was not included while

compiling the results. The questionnaire was filled by the chief managers or operational

managers of the bank. We have used this technique because it is a written document, each

and every question which we want to ask was written. So, the respondents were

comfortable while filling the questionnaire because each and every question was clearly

written in front of them. It was up to them to answer the question or not. Likert scale was

very helpful while answering the questions that are up to what extent they agree, neutral,

or disagree to the statements. All the respondents were treated and cooperate with us in

well manner. No questionnaire was rejected by the respondent while filling. We used

SPSS 11.5 version in this research. One questionnaire was filled by one branch of the

bank. Our target was to filled 150 questionnaires from different branches of financial

institutions. So, we have visited 144 financial institutions to conduct survey. For this

purpose we were visit almost 7 cities to collect our data.

 Outsourcing     18 

We conducted research on financial institutions including banks and money exchange.

We selected the financial institutions of Gujranwala, Sialkot, Gujrat, Ghakhar,

Wazirabad, Kamoki, and Lahore. We have covered only 1 money exchange. Out of 55

banks in Pakistan we covered 144 branches of 39 different banks. Our main focus was on

native cities of Gujranwala.

Pretesting of the data was also conducted to test the reliability and validity. Our first

questionnaire was dividing in 3 sections. First section was based on general information

about the organization, second section was based on the perceived benefits of outsourcing

security guards and the last section was based on disadvantages of outsourcing the

security guards. After pretesting we found that all the financial institutions were

outsourcing the services of security guards. So, we eliminate the last section to reduce the

length of our questionnaire which indirectly facilitates our respondents while giving

response. The results were accurate after doing pilot testing. Factor loading and

Cronbach’s Alpha were accurate. According to most of the financial institutions security

guard should not be the employee of the bank he should be outsourced and outsourcing of

security guards should be the part of financial institutions. The reason is that all the

activities regarding security guards handled and operated by the third party contractor

there salaries, uniforms, conflicts, demands etc. All the issues regarding security guards

handled and solved by the contractor.

Data was collected in just two weeks from 7 cities. Lahore was a new place for all of us

when we visited there to collect data we faced so many hurdles. Audit was conducted in
 Outsourcing     19 

almost all of the banks some of them were not allowing us to even sit there. In Lahore

due to terrorism activities situation is totally different as our topic is so much sensitive

outsourcing of security guards, which is directly related to security. When we asked them

to fill the questionnaire we were answer them to so many questions. They have taken the

copies of our ID cards and permission letters and also some of them have taken our

instructors phone number and name. When we were arriving back from Lahore firing was

conducted by some of the terrorisms near Shadera. It was shocking for all of us by

looking towards them so closely. We were faced so many hurdle while collecting data

from Lahore. In the remaining cities the respondents were calm and humble too, and

environment was also not too much strict as in Lahore. Some of the banks have given

response to us in there off timings.

 Outsourcing     20 

Content Analysis
CITY OF ORGANIZATION

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id GU JRANW ALA 52 35.9 35.9 35.9
si
alko
t 24 16 .6 16 .6 52.4
gha kha r 8 5.5 5.5 57.9
w a zi
ra ba d 10 6 .9 6 .9 6 4.8
gu j
ra t 16 11.0 11.0 75.9
KAMOKI 5 3.4 3.4 79.3
LAHORE 30 20.7 20.7 100.0
To
ta l 145 100.0 100.0

LAHORE

20.7%

GU JRANW ALA

35.9%
KAMOKI

3.4%

gu j
ra t

11.0%

w a zi
ra ba d

6 .9% si
alko
t

gha kha r 16 .6 %

5.5%

We collected data 35.9% from Gujranwala, 16.6% from Sialkot, 11% from Gujrat, 6.9% from Wazirabad, 5.5%
from Ghakhar, 3.4% from Kamoki and from Lahore 20.7%.
 Outsourcing     21 

NATURE OF ORGANIZATION

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id BANK 144 99.3 99.3 99.3
MONEY
1 .7 .7 100.0
EX C HANGER
To ta l 145 100.0 100.0

MONEY EX C HANGER
.7%

BANK
99.3%

There was only one money exchange out of 100 covered institutions which gave response to our questionnaire.

Other 99.3% institutions are banks

 Outsourcing     22 

TYPE OF ORGANIZATION

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id FOREIGN 33 22.8 22.8 22.8
LOC AL 112 77.2 77.2 100.0
To
ta l 145 100.0 100.0

FOREI
G N

22.1%

LOC AL

77.9%

77.9% of financial institutions were local while 22.1% of financial institutions are foreign
 Outsourcing     23 

SERVICES CATAGORY OF THE BANK

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id C OMMERC IAL
138 95.2 95.2 95.2
BANK
C ENTRAL
3 2.1 2.1 97.2
BANK
INV ESTMENT
4 2.8 2.8 100.0
BANK
To ta l 145 100.0 100.0

I
NV ESTMENT BANK

2.8%
C ENTRAL BANK
2.1%

C OMMERC I
AL BANK

95.2%

There are 95.2% commercial banks, 2.8% investment banks and 2.1% central bank.
 Outsourcing     24 

NUMBER OF EMPLOYEES

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id 10 OR
47 32.4 32.4 32.4
LESS
10-20 47 32.4 32.4 6 4.8
21-30 19 13.1 13.1 77.9
31-40 9 6 .2 6 .2 84.1
41-50 6 4.1 4.1 88.3
51-6 0 5 3.4 3.4 91.7
MORE
12 8.3 8.3 100.0
THEN 6 0
Tota l 145 100.0 100.0

MORE THEN 6 0

8.3%
51-6 0
3.4%

41-50
4.1%
10 OR LESS
31-40
32.4%
6 .2%

21-30

13.1%

10-20

32.4%

. 

So far as the number of employees is concerned; there 32.4% institutions having employees 10 or less, 32.4%
branches having the number of employees between 10-20, 13.1% branches having employees between 21-30,
6.2% branches having the number of employees between 31-40, 4.1% branches having the number of
employees between 41-50, 3.4% branches having number of employees between 51-60 and 8.3% branches
having employees more than 60.
 Outsourcing     25 

SHOULD SECURTY GUARD BE EMPLOYEE OF THE BANK?

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id YES 44 30.3 30.3 30.3
NO 101 6 9.7 6 9.7 100.0
To
ta l 145 100.0 100.0

YES

30.3%

NO
6 9.7%

There are 69.7% respondents who suggested that the security guard should not be the employee of the bank.

There are 30.3% respondents who are in favor that the security guard should be the employee of the bank.
 Outsourcing     26 

ARE YOU OUTSOURCING THE SERVICES OF SECURITY GUARDS?

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rcent Va l
id Pe
rcent Pe rce nt
Va l
id YES 133 91.7 91.7 91.7
NO 12 8.3 8.3 100.0
To
ta l 145 100.0 100.0

NO
8.3%

YES
91.7%

91.7% branches are outsourcing the services of security guards while 8.3% branches are not outsourcing the

services of security guards.

 Outsourcing     27 

WHEN YOU STARTED TO OUTSOURCE THE SERVICES OF SECURITY GUARDS?

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id 2000 OR
56 38.6 40.3 40.3
BEFORE
2001-2002 18 12.4 12.9 53.2
2003-2004 14 9.7 10.1 6 3.3
2005-2006 18 12.4 12.9 76 .3
2007-2008 28 19.3 20.1 96 .4
2009 5 3.4 3.6 100.0
To
ta l 139 95.9 100.0
Mi
ssi
ng Sys te
m 6 4.1
To
ta l 145 100.0

Mi
ssi
ng
4.1%

2009

3.4%

2007-2008
2000 OR BEFORE
19.3%
38.6 %

2005-2006

12.4%

2003-2004 2001-2002
9.7% 12.4%

. 

The trend of outsourcing the services if security guards in banking sector had started before 2000 as 38.6% of

the branches tell that they have started outsourcing in or before 2000.
 Outsourcing     28 

FOCUS ON OTHER IMPORTANT FUNCTIONS OF THE ORGANIZATION

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
30 20.7 20.7 20.7
AGREE
AGREE 64 44.1 44.1 6 4.8
NEU TRAL 25 17.2 17.2 82.1
DISAGREE 18 12.4 12.4 94.5
STRONGLY
8 5.5 5.5 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

5.5%
STRONGLY AGREE
DI
SAGREE
20.7%
12.4%

NEU TRAL
17.2%

AGREE
44.1%

There are 20.7% respondents who are strongly agreed, 44.1% were agreed, 17.2% were neutral, 12.4% were

disagreed and 5.5% of the respondents were strongly disagreed that the outsourcing of security guards causes

more focus on other core functions of the organization.

 Outsourcing     29 

FLEXIBILTY

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
30 20.7 20.7 20.7
AGREE
AGREE 84 57.9 57.9 78.6
NEU TRAL 18 12.4 12.4 91.0
DISAGREE 9 6 .2 6 .2 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

2.8%

DI
SAGREE
6 .2%
NEU TRAL

12.4%

STRONGLY AGREE
20.7%

AGREE

57.9%

There are 20.7% respondents who were strongly agreed, 57.9% were agreed, 12.4% were neutral, 6.2%

disagreed and 2.8% were strongly disagreed with the concept that outsourcing the services of security guards

provide flexibility as contractor manages the security functions.

 Outsourcing     30 

ENABLE TO PROVIDE MORE SERVICES

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
31 21.4 21.4 21.4
AGREE
AGREE 53 36 .6 36 .6 57.9
NEU TRAL 32 22.1 22.1 80.0
DISAGREE 23 15.9 15.9 95.9
STRONGLY
6 4.1 4.1 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
4.1%
STRONGLY AGREE
DI
SAGREE
21.4%
15.9%

NEU TRAL

22.1%

AGREE
36 .6 %

There are 21.4% respondents who were strongly agreed, 36.6% were agreed, 22.1% were neutral, 15.9% were

disagreed and 4.1% were strongly disagreed that the outsourcing the services of security guards enables

organizations to provide more services.

 Outsourcing     31 

SAVES INVESTMENT IN OWN EQUIPMENTS

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
39 26 .9 26 .9 26 .9
AGREE
AGREE 65 44.8 44.8 71.7
NEU TRAL 22 15.2 15.2 86 .9
DISAGREE 15 10.3 10.3 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

2.8%

DI
SAGREE
10.3%
NEU TRAL

15.2%

STRONGLY AGREE

26 .9%

AGREE

44.8%

26.6% of respondents were strongly agreed, 44.8% were agreed, 15.2% were neutral, 10.3% were disagreed,

and 2.8% were strongly disagreed that outsourcing the services of security guards saves investment in own

equipments.
 Outsourcing     32 

SAVES INVESTMENT IN HIRING OWN STAFF

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
47 32.4 32.4 32.4
AGREE
AGREE 68 46 .9 46 .9 79.3
NEU TRAL 17 11.7 11.7 91.0
DISAGREE 9 6 .2 6 .2 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

2.8%

DI
SAGREE

6 .2%
NEU TRAL
STRONGLY AGREE
11.7%
32.4%

AGREE

46 .9%

32.4% respondents were strongly agreed, 46.9% were agreed, 11.7% were neutral, 6.2% were disagreed, and

2.8% were strongly disagreed that the outsourcing the services of security guards saves investment in hiring

own staff.
 Outsourcing     33 

CONTRACTOR'S BETTER TECHONOLOGY

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
22 15.2 15.2 15.2
AGREE
AGREE 59 40.7 40.7 55.9
NEU TRAL 32 22.1 22.1 77.9
DISAGREE 25 17.2 17.2 95.2
STRONGLY
7 4.8 4.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
STRONGLY AGREE
4.8%
15.2%
DI
SAGREE

17.2%

NEU TRAL
AGREE
22.1%
40.7%

15.2% of respondents were strongly agreed, 40.7% were agreed, 22.1% were neutral, 17.2% were disagreed

and 4.8% were strongly disagreed that there is better technology used by the contractors for security purposes.
 Outsourcing     34 

CONTRACTOR PROVIDES SERVICES AT LESS PRICE

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
45 31.0 31.0 31.0
AGREE
AGREE 51 35.2 35.2 6 6 .2
NEU TRAL 19 13.1 13.1 79.3
DISAGREE 23 15.9 15.9 95.2
STRONGLY
7 4.8 4.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

4.8%

DI
SAGREE
15.9% STRONGLY AGREE

31.0%

NEU TRAL
13.1%

AGREE
35.2%

As far as the price of the services provided by the third party contractor is concerned. There are 31% of

respondents who were strongly agreed, 35.2% were agreed, 13.1% were neutral, 15.9% were disagreed, and

4.8% of the respondents were strongly disagreed that the third party contractor provides the services of security

guards at less price.

 Outsourcing     35 

CONTRACTOR PROVIDES YOU BEST QUALITY SERVICES

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
24 16 .6 16 .6 16 .6
AGREE
AGREE 43 29.7 29.7 46 .2
NEU TRAL 36 24.8 24.8 71.0
DISAGREE 32 22.1 22.1 93.1
STRONGLY
10 6 .9 6 .9 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
STRONGLY AGREE
6 .9%
16 .6 %

DI
SAGREE

22.1%

AGREE
29.7%

NEU TRAL

24.8%

16.6% of the respondents were strongly agreed, 29.7% were agreed, 24.8% were neutral, 22.1% were

disagreed, and 6.9% were strongly disagreed that contractor provide best quality services.
 Outsourcing     36 

CONTRACTOR HAS BETTER REPUTE IN MARKET

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
21 14.5 14.5 14.5
AGREE
AGREE 41 28.3 28.3 42.8
NEU TRAL 46 31.7 31.7 74.5
DISAGREE 31 21.4 21.4 95.9
STRONGLY
6 4.1 4.1 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
STRONGLY AGREE
4.1%
14.5%
DI
SAGREE
21.4%

AGREE
28.3%

NEU TRAL
31.7%

There are 14.5% of respondents who were strongly agreed, 28.3% were agreed, 31.7%were neutral, 21.4%

were disagreed, and 4.1% were strongly disagreed that the services of security guards are outsourced due to the

better repute of the contractor.

 Outsourcing     37 

ABLE TO LEARN NEW THINGS

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
12 8.3 8.3 8.3
AGREE
AGREE 46 31.7 31.7 40.0
NEU TRAL 38 26 .2 26 .2 6 6 .2
DISAGREE 40 27.6 27.6 93.8
STRONGLY
9 6 .2 6 .2 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE STRONGLY AGREE
6 .2% 8.3%

DI
SAGREE
27.6 %
AGREE
31.7%

NEU TRAL

26 .2%

8.3% of respondents were strongly agreed, 31.7% were agreed, 26.2% were neutral, 27.6% were disagreed, and

6.2% were strongly disagreed that the outsourcing the services of security guards enables to learn new things

from the contractor.

 Outsourcing     38 

GOOD RELATIONSHIP WITH OTHER ORGANIZATIONS

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
10 6 .9 6 .9 6 .9
AGREE
AGREE 52 35.9 35.9 42.8
NEU TRAL 36 24.8 24.8 6 7.6
DISAGREE 31 21.4 21.4 89.0
STRONGLY
16 11.0 11.0 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE STRONGLY AGREE

11.0% 6 .9%

DI
SAGREE
21.4% AGREE

35.9%

NEU TRAL
24.8%

There are 6.9% respondents who were strongly agreed, 35.9% were agreed, 24.8% were neutral, 21.4%

were disagreed and 11% were strongly disagreed that it develops good relationships with other organizations.
 Outsourcing     39 

TRAINED STAFF

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
50 34.5 34.5 34.5
AGREE
AGREE 60 41.4 41.4 75.9
NEU TRAL 15 10.3 10.3 86 .2
DISAGREE 16 11.0 11.0 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
2.8%

DI
SAGREE
11.0%

STRONGLY AGREE
NEU TRAL
34.5%
10.3%

AGREE

41.4%

There are 34.5% respondents who were strongly agreed, 41.4% were agreed, 10.3% were neutral, 11%

were disagreed and were 2.8% were strongly disagreed that the contractors have trained and specialized people.
 Outsourcing     40 

CONTRACTOR PROVIDES QUICK SERVICE

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
25 17.2 17.2 17.2
AGREE
AGREE 59 40.7 40.7 57.9
NEU TRAL 28 19.3 19.3 77.2
DISAGREE 29 20.0 20.0 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

2.8% STRONGLY AGREE

DI
SAGREE 17.2%
20.0%

NEU TRAL
19.3%
AGREE
40.7%

There are17.2% respondents who were strongly agreed, 40.7% were agreed, 19.3% were neutral,

20% disagreed and 2.8% were strongly disagreed that quick services are offered by contractor.
 Outsourcing     41 

SAVES MONEY TO SPEND ON NEW SERVICES

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
25 17.2 17.2 17.2
AGREE
AGREE 63 43.4 43.4 6 0.7
NEU TRAL 36 24.8 24.8 85.5
DISAGREE 17 11.7 11.7 97.2
STRONGLY
4 2.8 2.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
2.8%
DI
SAGREE STRONGLY AGREE

11.7% 17.2%

NEU TRAL
24.8%

AGREE
43.4%

There are 17.2% of respondents who were strongly agreed, 43.4% were agreed, 24.8% were neutral, 11.7%

were disagreed and 2.8% were strongly disagreed that it’s spare money to spend on new services.
 Outsourcing     42 

PREVENTS DISCLOSUER OF THE CONFIDENTIAL INFORMATION

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
25 17.2 17.2 17.2
AGREE
AGREE 34 23.4 23.4 40.7
NEU TRAL 29 20.0 20.0 6 0.7
DISAGREE 41 28.3 28.3 89.0
STRONGLY
16 11.0 11.0 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE
STRONGLY AGREE
11.0%
17.2%

DI
SAGREE

28.3%
AGREE

23.4%

NEU TRAL
20.0%

There are 17.2% of respondents who were strongly agreed, 23.4% were agreed, 20% were neutral, 28.3%

were disagreed and 11% were strongly disagreed that it prevents the disclosure of confidential information.
 Outsourcing     43 

LACK OF SELF SUFFICIENCY

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
16 11.0 11.0 11.0
AGREE
AGREE 30 20.7 20.7 31.7
NEU TRAL 27 18.6 18.6 50.3
DISAGREE 43 29.7 29.7 80.0
STRONGLY
29 20.0 20.0 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY AGREE
STRONGLY DI
SAGREE 11.0%
20.0%

AGREE
20.7%

DI
SAGREE
29.7%
NEU TRAL
18.6 %

There are 11% of respondents were strongly agreed, 20.7% were agreed, 18.6% were neutral, 29.7%

were disagreed and 20% were strongly disagreed that it is beneficial to alleviate the self sufficiency.
 Outsourcing     44 

CONTRACTOR BETTER UNDERSTANDS THE RQUIREMENTS OF SECURITY SYSTEM

C u mu l
a ti
ve
Fre
qu e
ncy Pe
rce
nt Va l
id Pe
rce
nt Pe rce nt
Va l
id STRONGLY
37 25.5 25.5 25.5
AGREE
AGREE 51 35.2 35.2 6 0.7
NEU TRAL 27 18.6 18.6 79.3
DISAGREE 23 15.9 15.9 95.2
STRONGLY
7 4.8 4.8 100.0
DISAGREE
Tota l 145 100.0 100.0

STRONGLY DI
SAGREE

4.8%

DI
SAGREE STRONGLY AGREE
15.9% 25.5%

NEU TRAL

18.6 %

AGREE
35.2%

There 25.5% respondents who were strongly agreed, 35.2% were agreed, 18.6% were neutral, 15.9%

were disagreed and 4.8% were strongly disagreed that the contractor’s firm better understand the security

system then the organizations itself.

 Outsourcing     45 

Sementic Analysis
NAME OF ORGANIZATION * CITY OF ORGANIZATION Cross tabulation

C ITY OF ORGANIZATION

GU JRANW ALA si
alko
t gha kha r w a zi
ra ba d gu j
ra t KAMOKI LAHORE To
ta l

NAME OF RBS 1 1 0 0 1 0 0 3
ORGANIZATION
ARIF HABIB 1 1 0 0 1 0 0 3

EMIRATS
GLOBAL 1 1 0 0 0 0 0 2
Isl
a mi
cBa nk

MEEZAN
1 1 0 0 0 0 0 2
BANK

SILK BANK, 1 0 0 0 0 0 0 1

ALLIED
4 1 1 1 1 1 0 9
BANK

Du ba iIsl
a mi
c 1 0 0 0 1 0 1 3

Nobl
e
1 0 0 0 0 0 0 1
Ex
cha nge

MC B 6 1 1 1 1 1 3 14

BANK AL
2 0 0 1 0 0 1 4
Ha bi
b

Ba nkAl
2 1 0 1 1 0 1 6
Fa l
ah

NIB 1 1 1 1 1 0 1 6

As ka riBa nk 1 1 0 0 0 1 1 4

U BL 5 1 1 1 1 0 3 12

HBL 7 1 1 1 1 1 4 16

Tru s tBa nk 0 1 0 0 0 0 0 1

Ba nki
sla mi 0 1 0 0 1 0 0 2

Fa ys a lBa nk 0 1 0 0 1 0 1 3

SME 1 1 0 0 0 0 1 3
 Outsourcing     46 

Sa mba Ba nk 0 1 0 0 0 0 1 2

Sta nda rd
1 2 1 0 0 0 1 5
C ha rte
r

TheBa nko
f
2 1 1 1 1 0 1 7
Pu nj
ab

Atl
a s Ba nk 1 1 0 0 1 1 1 5

C i
ty Ba nk 1 0 0 0 0 0 1 2

Sta teBa nk 1 0 0 0 0 0 0 1

NBP 4 0 1 1 0 0 2 8

IDBP 1 0 0 0 0 0 0 1

KASB Ba nk 2 1 0 0 0 0 0 3

So
neriBa nk 0 1 0 1 0 0 1 3

AlBa ra ka
0 0 0 0 1 0 0 1
Isl
a mi

Khu s ha l
i
0 0 0 0 1 0 0 1
ba nk

My ba nk 1 0 0 0 1 0 0 2

Firs tW o
men
0 1 0 0 0 0 1 2
Ba nk

Na ti
o na l
1 0 0 0 0 0 1 2
Sa ving Ba nk

Pu njab
Pro vi
nci al
0 0 0 0 0 0 1 1
C orpora ti
ve
Ba nk

ZTBL 0 0 0 0 0 0 1 1

Ha bib
0 0 0 0 0 0 1 1
Me tropo
li
ta n

HSBC 0 1 0 0 0 0 0 1

JS BANK 1 0 0 0 0 0 0 1

To
ta l 52 24 8 10 16 5 30 145

This table shows that 52 branches of banks covered from Gujranwala, 30 from Lahore, 24 from Sialkot, 16 from Gujrat,

10 from Wazirabad, 8 from Ghakhar, and 5 from Kamoki. We have covered 16 branches of HBL, 14 of MCB, 12 of

UBL, 9 of Allied bank, and 8 branches of NBP. The covered branches of other banks are less then 8.
 Outsourcing     47 

TYPE OF ORGANIZATION * CITY OF ORGANIZATION Cross tabulation

C ITY OF ORGANIZATION

GU JRANW ALA si
alko
t gha kha r w a zi
ra ba d gu j
ra t KAMOKI LAHORE To
ta l

TYPE OF FOREIGN 10 8 2 2 6 0 4 32
ORGANIZATION
LOCAL 42 16 6 8 10 5 26 113

Total 50 24 8 10 16 5 30 145

Research infers that out of 145 branches of banks there are 113 local organizations and 32 are foreign

organizations. In Gujranwala 42 branches are of local organizations and 10 braches are of foreign

organizations. We have covered 16 braches of local organizations and 8 braches of foreign organizations from

Sialkot. We took 6 branches of local organizations and 2 branches of foreign organizations from Ghakhar.

There are 8 branches of local organizations and 2 braches of foreign organizations which we have covered from

Wazirabad. We have covered 10 braches of local organizations and 6 branches of foreign organizations from

Gujrat. We have covered only 5 branches of local organizations from Kamoki. From Lahore we have taken 26

branches of local organization and 4 branches of foreign organizations.

 Outsourcing     48 

NAME OF ORGANIZATION * SHOULD SECURTY GUARD BE EMPLOYEE OF THE BANK? Crosstabulation

SHOU LD SEC U RTY

GU ARD BE
EMPLOYEE OF THE
BANK?

YES NO To
ta l

NAME OF RBS 0 3 3
ORGANIZATION
ARIF HABIB 1 2 3

EMIRATS GLOBAL
0 2 2
Isl
a mi
cBa nk

MEEZAN BANK 0 2 2

SILK BANK, 0 1 1

ALLIED BANK 2 7 9

Du ba iIsl
a mi
c 1 2 3

No
bleEx
cha nge 0 1 1

MC B 7 7 14

BANK AL Ha bi
b 1 3 4

Ba nkAlFa l
ah 2 4 6

NIB 2 4 6

As ka riBa nk 0 4 4

U BL 1 11 12

HBL 7 9 16

Tru s tBa nk 0 1 1

Ba nki
sla mi 0 2 2

Fa ys a lBa nk 0 3 3

SME 0 3 3

Sa mba Ba nk 1 1 2

Sta nda rd C ha rte

r 2 3 5

TheBa nko
fPu nj
ab 6 1 7
 Outsourcing     49 

Atl
a s Ba nk 2 3 5

C i
ty Ba nk 0 2 2

Sta teBa nk 1 0 1

NBP 1 7 8

IDBP 0 1 1

KASB Ba nk 0 3 3

So
neriBa nk 0 3 3

AlBa ra ka Isl
a mi 0 1 1

Khu s ha l
iba nk 0 1 1

My ba nk 1 1 2

Fi
rs tW o
men Ba nk 1 1 2

Na ti
o na lSa vi
ng
2 0 2
Ba nk

Pu nja b Pro vi
ncial
1 0 1
C orpo ra ti
veBa nk

ZTBL 1 0 1

Ha bi
b Me
tro
pol
ita n 0 1 1

HSBC 0 1 1

JS BANK 1 0 1

To
ta l 44 101 145

101 branches of banks argued that security guard should not be the employee of bank while 44 branches

opposed this view and argue that security guard should be the employee of bank. All the 3 branches of RBS

argued that security guard should not be the employee of the bank. 2 branches of Arif Habib Bank argued that

security guard should not be the employee of the bank and 1 branch of this bank argued that security guard

should be the employee of the bank. 2 branches of Emirates Global argued that security guard should not be the

employee of the bank. All 2 branches of Meezan bank prose that security guard should not be the employee of

the bank. Silk bank also recommended that security guard should not be the employee of the bank. There are 7
 Outsourcing     50 

branches of Allied bank which are in favor that security guard should not be the employee of the bank while 2

branches of this bank argued that security guard should be the employee of the bank. There are 2 branches of

Dubai Islamic bank which refer security guard should not be the employee of the bank and 1 branch of this

bank opposed this concept. Noble currency Exchange from Gujranwala argued that security guard should not

be the employee of the bank. 50% of covered branches of MCB argued that security guard should not be the

employee of bank while remaining 50 % opposed this concept. There are 3 branches of Bank Al Habib were in

favor that security guard should not be the employee of the bank while 1 branch of this bank opposed this

concept. There are 4 branches of Bank Al Falah which argued that security guard should not be the employee

of the bank while 2 branches of this bank opposed this concept. There are 4 branches of NIB argued that

security guard should not be the employee of the bank while 2 branches opposed this concept. Askari bank

argued that security guard should not be the employee of the bank. 11 branches of UBL argued that security

guard should not be the employee of the bank while 1 branch of this bank opposed this concept. 9 braches of

HBL argued that security guard should not be the employee of the bank while 7 branches opposed this concept.

Trust bank argued that security guard should not be the employee of the bank. Bank Islami argued that security

guard should not be the employee of the bank. All 3 branches of Faysal Bank argued that security guard should

not be the employee of the bank. 3 branches of SME bank argued that security guard should not be the

employee of the bank. 1 branch of Samba bank argued that security guard should not be the employee of the

bank while 1 branch of this bank opposed this concept. 3 branches of Standard Chartered bank argued that

security guard should not be the employee of the bank while 2 branches of this bank opposed this concept. 1

branches of the Bank of Punjab argued that security guard should not be the employee of the bank while 6

branches were in favor that security guard should be the employee of the bank. 3 branches of Atlas bank argued

that security guard should not be the employee of the bank while 2 branches were not in favor of this concept.

City bank argued that security guard should not be the employee of the bank while State Bank argued that
 Outsourcing     51 

security guard should be the employee of the bank. 7 branches of NBP argued that security guard should not be

the employee of the bank while 1 branch of NBP security guard should be the employee of the bank. IDBP,

KASB bank, Soneri bank, Al Baraka Islami bank and Khushali bank argued that security guard should not be

the employee of the bank. Out of 2 one branch of My bank argued that security guard should not be the

employee of the bank while 1 branch of this bank opposed this concept. First Women bank also give the same

arguments as given by the My bank. All 2 branches of National Saving bank argued that security guard should

be the employee of the bank. Punjab Provincial Corporated bank and ZTBL both argued that security guard

should be the employee of the bank. Habib Metropolitan and HSBC both argued that security guard should not

be the employee of the bank while JS bank argued that security guard should be the employee of the bank

NAME OF ORGANIZATION * ARE YOU OUTSOURCING THE SERVICES OF SECURITY GUARDS? Crosstabulation

ARE YOU
OU TSOU RC INGTHE
SERV IC ES OF
SEC U RITY GU ARDS?

YES NO To
ta l

NAME OF RBS 3 0 3
ORGANIZATION
ARIF HABIB 3 0 3

EMIRATS GLOBAL
2 0 2
Isl
a mi
cBa nk

MEEZAN BANK 2 0 2

SILK BANK, 1 0 1

ALLIED BANK 9 0 9

Du ba iIsl
a mi
c 3 0 3

No
bleEx
cha nge 1 0 1

MC B 13 1 14

BANK AL Ha bi
b 4 0 4

Ba nkAlFa l
ah 6 0 6

NIB 6 0 6
 Outsourcing     52 

As ka riBa nk 4 0 4

U BL 12 0 12

HBL 16 0 16

Tru s tBa nk 1 0 1

Ba nki
sla mi 2 0 2

Fa ys a lBa nk 3 0 3

SME 3 0 3

Sa mba Ba nk 2 0 2

Sta nda rd C ha rte

r 5 0 5

TheBa nko
fPu nj
ab 0 7 7

Atl
a s Ba nk 5 0 5

C i
ty Ba nk 2 0 2

Sta teBa nk 0 1 1

NBP 7 1 8

IDBP 1 0 1

KASB Ba nk 3 0 3

So
neriBa nk 3 0 3

AlBa ra ka Isl
a mi 1 0 1

Khu s ha l
iba nk 1 0 1

My ba nk 2 0 2

Fi
rs tW o
men Ba nk 2 0 2

Na ti
o na lSa vi
ng
1 1 2
Ba nk

Pu nja b Pro vi
ncial
1 0 1
C orpo ra ti
veBa nk

ZTBL 0 1 1

Ha bi
b Me
tro
pol
ita n 1 0 1

HSBC 1 0 1

JS BANK 1 0 1

To
ta l 133 12 145
 Outsourcing     53 

This research indicates that out of 145 branches of banks 133 branches are outsourcing the services of security

guards while 12 branches are not outsourcing the services of security guards. All seven branches of The bank

of Punjab are not outsourcing the services of security guards. 1 branch of MCB, 1 branch of State Bank, 1

branch of NBP, 1 branch of National saving Bank and 1 branch of ZTBL are also not indulged in outsourcing

of security guards.

Street Ethnography
Along with questionnaires we also discussed the benefits of outsourcing with managers of almost all branches.

It was an interesting debate. Our concepts are widened by such type of unstructured interviews. When did we

go to any branch first of all we approached to the branch manager after a little bit discussion we turned to our

questionnaire. Some of managers filled our questionnaire by themselves and some managers referred us to

some other officers to give their views in this perspective.

FINDINGS AND DISCUSSIONS

Factor loading using Principle component method:

Factor loading method uses covariance and correlation matrix analysis to explain the relationship between

variables by using less number of factors (Ozdamar, K, 1999). It results in increased parsimony (Leech, Barrett

and Morgan, 2005). Principle component method was used in order to explain the relationship between

observed variables by using fewer variables. In principle component analysis an ordinary correlation matrix is

used to perform the analysis in which complete description of each variable is shown.
 Outsourcing     54 

Assumptions for principle component factor analysis

Using PCA method it is assumed that the variables in the analysis are normally distributed because skewness or

outliers affect the observed relationship. “Varimax with Kaiser Normalization” has been used to test the

normality of data. It was found that data was normally distributed. PCA method is based on correlation and

requires the variable to be related to each other in a linear fashion at least some of the variables should be

correlated at a moderate level. Bartlett’s test of sphericity addresses this assumption.

KMO and Bartlett's Test

Ka i
se r-Me yer-Ol
kin Me
a s u reo
fSa mpl
ing
Ade qu a cy. .815

Ba rtl
e tt's Tes to
f Appro
x.C hi
-Squ a re 780.370
Sphe rici ty df 136
Si
g. .000

If the value of KMO is greater then 0.5 then the variables are normally distributed. Here the value of KMO is

0.815 so the results are significant. As the value of Bartlett’s test of sphericity is 0.000 so there will be some

variables which are correlated at moderate level.

 Outsourcing     55 

Total Variance Explained

Ex tra cti
o n Su ms o fSqu a re d
Ini
tia lEige nva l
ue s Lo a dings Ro ta ti
o n Su ms o fSqu a red Loa dings
% o f C u mu l
a ti
ve % o f C u mu la ti
ve % o f C u mu l
a ti
ve
C o
mpo
nent To ta l V a ri
a nce % To ta l V a ri
a nce % To ta l V a ri
a nce %
1 5.179 30.46 2 30.46 2 5.179 30.46 2 30.46 2 2.947 17.333 17.333
2 1.849 10.877 41.339 1.849 10.877 41.339 2.577 15.16 2 32.495
3 1.6 06 9.449 50.789 1.6 06 9.449 50.789 2.293 13.489 45.984
4 1.174 6 .903 57.6 92 1.174 6 .903 57.6 92 1.990 11.708 57.6 92
5 .927 5.456 6 3.148
6 .781 4.594 6 7.742
7 .718 4.225 71.96 7
8 .701 4.121 76 .088
9 .6 51 3.830 79.918
10 .6 07 3.570 83.488
11 .557 3.276 86 .76 3
12 .476 2.801 89.56 4
13 .455 2.6 78 92.242
14 .437 2.571 94.813
15 .333 1.959 96 .772
16 .289 1.6 99 98.472
17 .26 0 1.528 100.000
Ex
tra cti
o n Me
tho
d:Principa lC o
mpo ne ntAna l
ys i
s.

Table shows the Initial Eigenvalues, extraction sums of Squared loading both individual and cumulative, and

rotation sums of squared loading (where applicable). Four variables are extracted as there Eigenvalue is above

1.
 Outsourcing     56 

Rotated Component Matrix(a)

C o
mpo
nent
1 2 3 4
FOC U S ON OTHER
IMPORTANT FU NC TIONS .133 .001 .835 .129
OF THE ORGANIZATION
FLEX IBILTY .073 .126 .781 .16 3
ENABLE TO PROV IDE
MORE SERV IC ES .251 .258 .741 .083
SAV ES INV ESTMENT IN
OW N EQU IPMENTS .019 .756 .228 .174
SAV ES INV ESTMENT IN
HIRINGOW N STAFF .009 .731 .229 .147
C ONTRAC TOR'S BETTER
TEC HONOLOGY .482 .121 .379 .181
C ONTRAC TOR
PROV IDES SERV IC ES AT .199 .712 -.082 -.120
LESS PRIC E
C ONTRAC TOR
PROV IDES YOU BEST .579 .194 .188 .311
QU ALITY SERV IC ES
C ONTRAC TOR HAS
BETTER REPU TE IN .6 59 .151 .098 .216
MARKET
ABLE TO LEARN NEW
THINGS .412 -.076 .044 .599
GOOD RELATIONSHIP
W ITH OTHER .701 .342 .002 -.141
ORGANIZATIONS
TRAINED STAFF -.057 .490 .146 .6 6 9
C ONTRAC TOR
PROV IDES QU IC K .047 .191 .229 .754
SERV IC E
SAV ES MONEY TO
SPEND ON NEW .287 .6 26 .06 5 .193
SERV IC ES
PREV ENTS DISC LOSU ER
OF THE C ONFIDENTIAL
INFORMATION .6 94 .101 .131 .011

LAC K OF SELF
SU FFIC IENC Y .547 -.055 .054 .038
C ONTRAC TOR BETTER
U NDERSTANDS THE
RQU IREMENTS OF .538 -.035 .196 .515
SEC U RITY SYSTEM

Extra ctio n Metho

d:Pri
ncipa lC o mpo nentAna l
ys i
s . Ro
ta ti
o n Me
tho
d:V a ri
ma xw i
th Ka i
serNo
rma l
iza ti
o n.
a Ro ta ti
o n co
nverge
din 7i tera ti
o ns .
 Outsourcing     57 

This table gives the rotated component matrix for the perceived benefits of outsourcing guards by financial

institutions. After rotation good relationships with other organizations is selected as most important perceived

benefit of outsourcing after this freeing investment in own equipments is second most important benefit while

focus on other important functions and focus on other important functions of the financial institutions got the

third and forth number respectively quick services of contractor.

R E L I A B I L I T Y A N A L Y S I S - S C A L E (A L P H A)
****** Method 1 (space saver) will be used for this analysis ******
_

Reliability Coefficients

N of Cases = 139.0 N of Items = 25

Alpha = .7242

Cronbach’s alpha was computed to assess the reliability of variables. The value of alpha is

0.7242 which is in between 0.7 and 0.9 so the variables are reliable.

According to literature review and unstructured interviews the most important benefit of

outsourcing is reduction in cost. More focus on core functions and flexibility are other

important benefits of outsourcing. According to our research the most important perceived

benefit of outsourcing is better relationship with other organizations also saving in investment
 Outsourcing     58 

in own equipments, quick services and focus on other important functions of the organizations

are included in most perceived benefits of outsourcing of security guards by financial

institutions.

CRITICISM OF OUTSOURCING

Quality Risk

There is may be the quality risk when you outsource the services from contractor. It may be of lower quality

then those which you were offering before. You should check the quality of the service provided by the

contractor through different tests.

Quality fade

Quality fade is the deliberate and secretive reduction in the quality of labor in order to widen profit margins.

The downward changes in human capital are subtle but progressive, and usually unnoticeable by the out

source/customer.

Public opinion

There is a strong public opinion regarding outsourcing that outsourcing damages a local labor market. Outsourcing

is the transfer of the delivery of services which affects both jobs and individuals.

Language skills
 Outsourcing     59 

In the area of call centers or those where language skills are the part of the job end-user-experience is deemed

to be of lower quality when a service is outsourced.

Qualifications of outsourcers

The supplier may replace staff with less qualified people or with people with different non-equivalent

qualifications.

There are some of the reasons due to which the outsourcing should become successful.

Top 10 Factors for Successful Outsourcing

1-Understanding company goals and objectives

2-A strategic vision and plan

3-Selecting the right vendor

4-Ongoing management of the relationships

5-A properly structured contract

6-Open communication with affected individual /groups

7-Senior executive support and involvement

8-Careful attention to personnel issues

9-Near team financial justification

10-Use of outside expertise (Wikipedia)

 Outsourcing     60 

CONCLUSION

After doing analysis we concluded that security is an important issue among all financial sectors. Almost all

banks and money exchangers outsourcing the services of security guards due to different factors. We analyze

all the factors among which some of the factors have high importance. Outsourcing of security guards is

beneficial in reducing the cost and freeing of resources to utilize on core functions of financial institutions. It

provides better quality services. By outsourcing the security provider companies registered by State Bank the

financial institutions can increase their goodwill and reputation in the eyes of customer. Financial institutions

can increase their customer satisfaction by outsourcing practices in security system. By outsourcing practices

financial institutions can avail flexibility and can execute the operations of the business effectively. There are

some drawbacks of outsourcing of security guards but overall it is very beneficial for financial institutions to

outsource the services of security guards.

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Charles P. Whaley, “What CIOs must know MS Exchange Outsourcing: Benefits & Expectations”, 2005

Chuck Reamy, “the benefits of outsourcing operation: maintenance”, 2000

 Outsourcing     61 

Dulacha Barako, Peter Gatere, “outsourcing practices in Kenyan banking sector” 2008.

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IT Services”, 2007
 Outsourcing     62 

Martin Schonteik, “Outsourcing: RISKS AND BENEFITS”, 2004.

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