Tag Archives: Outsourcing

Effects of Outsourcing on Organization Performance in Manufacturing Sector in Kenya: A Case of Del Monte Kenya Limited (Published)

The emergence of globalization has made outsourcing to become one of the widely embraced business strategy for delivering outstanding services to consumers in the manufacturing sector. However, in spite of the increasing trend in outsourcing arrangements, there are inadequate literature underpinnings on how outsourcing activities affect organization performance in manufacturing sector. In order to bridge that gap this research sought to study the effects of outsourcing on organization performance in manufacturing sector in Kenyan firms. The research objectives were to determine whether cost affects organizational performance, to assess whether quality affects organizational performance, to find out whether technology adaption affects organization performance and finally to establish whether risks affects organization performance at Del Monte Kenya Limited. The researcher used descriptive research design method in carrying out his study. The study targeted a population of 42 management staff from three major departments namely: Production, Transport and Agriculture, Engineering. The researcher used census survey method to pick his sample. Census survey method was used because the population was a small one. Data was collected from primary sources through survey method by use of questionnaires. The data was quantitatively analyzed based on research objectives. The quantitative data was analyzed through descriptive statistics and inferential analysis by use of statistical package for social sciences (SPSS) version 21 software. Both correlation and regression analysis were done and the results reviewed that: Cost, quality, technology adaption had organization performance had a significant strong positive relationship. There was an insignificant positive weak relationship between risks and organization performance. Based on the study findings, the researcher recommended that: Organizations should not outsource an activity fully until they have confirmed beyond doubt that the service provider is capable of handling the activity, Organization should engage the service provider on the quality standards which are expected before entering into the contract, Organizations should select the service provider on the basis of consistent technical and managerial capabilities, Service providers should only handle particular risks which even if they occurred would not affect the entire organization performance.

Keywords: Core competencies, Off-showing, Outsourcing, Service Level Agreement, Sub-contracting., offshore outsourcing

The Impact of Outsourcing on the Growth of Hotels in Eldoret Town in Kenya (Published)

Hospitality Industry, which majorly consists of hotels and restaurant chains and related services, is one of the largest service industries in the world. Most countries in Africa have realized that the development of hospitality industries is also important for economic diversification. The study assessed the influence of strategic alliances on growth of hotel industry in Eldoret town, the headquarters of Uasin Gishu County in the North Rift region of Kenya. Based on the study this paper explores the effects of outsourcing on growth of hotel industry. The study adopted a descriptive survey research design with a target population of 220 in the hotel industry in Eldoret town. A sample of 112 respondents was drawn proportionately from four categories of hotels using stratified random sampling technique. A semi-structured questionnaire was administered to collect the required data. Data was analyzed using both descriptive and inferential statistical techniques with the aid of a computer software known as Statistical Package for Social Sciences (SPSS) version 20. Multiple regression analysis was used to analyze the data.  The study found that outsourcing had contributed to increased hotel sales, profits, product/service quality and reduction of costs. It was therefore recommended that hotel managers need to understand the benefits as well as the challenges that come with outsourcing. The findings of the study will be of benefit to hotels with limited resources and exposed to growth opportunities as they will be able to appreciate the role of outsourcing in leveraging on large firms’ resources for profitability, growth and expansion.

Keywords: Eldoret Town, Growth, Hotels, Kenya, Outsourcing

EFFECTS OF OUTSOURCING ON ORGANIZATION PERFORMANCE IN MANUFACTURING SECTOR IN KENYA: A CASE OF DEL MONTE KENYA LIMITED (Published)

The emergence of globalization has made outsourcing to become one of the widely embraced business strategy for delivering outstanding services to consumers in the manufacturing sector. However, in spite of the increasing trend in outsourcing arrangements, there are inadequate literature underpinnings on how outsourcing activities affect organization performance in manufacturing sector. In order to bridge that gap this research sought to study the effects of outsourcing on organization performance in manufacturing sector in Kenyan firms. The research objectives were to determine whether cost affects organizational performance, to assess whether quality affects organizational performance, to find out whether technology adaption affects organization performance and finally to establish whether risks affects organization performance at Del Monte Kenya Limited. The researcher used descriptive research design method in carrying out his study. The study targeted a population of 42 management staff from three major departments namely: Production, Transport and Agriculture, Engineering. The researcher used census survey method to pick his sample. Census survey method was used because the population was a small one. Data was collected from primary sources through survey method by use of questionnaires. The data was quantitatively analyzed based on research objectives. The quantitative data was analyzed through descriptive statistics and inferential analysis by use of statistical package for social sciences (SPSS) version 21 software. Both correlation and regression analysis were done and the results reviewed that: Cost, quality, technology adaption had organization performance had a significant strong positive relationship. There was an insignificant positive weak relationship between risks and organization performance. Based on the study findings, the researcher recommended that: Organizations should not outsource an activity fully until they have confirmed beyond doubt that the service provider is capable of handling the activity, Organization should engage the service provider on the quality standards which are expected before entering into the contract, Organizations should select the service provider on the basis of consistent technical and managerial capabilities, Service providers should only handle particular risks which even if they occurred would not affect the entire organization performance.

Keywords: Core competencies, Off-showing, Outsourcing, Service Level Agreement, Sub-contracting., offshore outsourcing

The Effects of Key Service Outsourcing Strategies on Organizational Performance. (A Case Study of Commercial Banks in Ghana) (Published)

The study utilized registration inspecting to gather information from every one of the 15 acquisition officer, 17 examiners and 386 bolster staff. Cronbach alpha coefficient was utilized to test unwavering quality and was dissected utilizing descriptive insights and inferential measurements. The discoveries demonstrated that outsourcing absolutely increases on the execution of associations, it diminishes expenses of operation, efficient, nature of administration lastly the influences emphatically business deftness operation. Hence, the rate of hierarchical execution as a consequence of outsourcing is high in both short and long haul and numerous business administrators are resolved to join their prosperity to the outsourcing process. The study suggests that Policy creators and the administration need to comprehend the difficulties confronted in outsourcing administrations and figure approaches that would enhance administration conveyance. The study additionally shape a premise for further research by researchers intrigued to investigate how outsourcing influence execution at business banks in Ghana.

Keywords: Banks’, Business Deftness, Ghana, Organizational Performance, Outsourcing

Analysis of Outsourcing Logistics Service and Customer Satisfaction in Manufacturing Companies in South Western Nigeria (Published)

Outsourcing is a growing aspect of supply chain management and is receiving a lot of attention from manufacturing companies globally. This is because there is stiff competition and the need to satisfy customers demand variability, reduced lead-time and improve market share. This study establishes the extent manufacturing companies outsource services and the impact on customer satisfaction. The research was carried out within manufacturing companies in south western Nigeria. The population of the study consists of top management staff, this includes logistics, procurement and marketing managers. The sample of this study consisted 10 Manufacturing companies from the list of fifty (50) quoted companies on the Nigerian Stock Exchange modified by Manufacturing Association of Nigeria in 2005. The data collected was analyzed using regression analysis. The analysis indicates that manufacturing companies outsource Transportation and Distribution to a very large extent. Procurement, Warehousing, inventory control are also outsourced. The analysis also reveals that outsourcing has a significant effect to customer satisfaction. Overall, outsourcing seems not only to show positive benefits for cost reduction but also in service performance, thus, the study suggests that by outsourcing logistics activities companies can better service performance to their customers.

Keywords: Customer Satisfaction, Logistic Service, Outsourcing

Impact of Logistics Outsourcing Services on Company Transport Cost in Selected Manufacturing Companies in South Western Nigeria (Published)

Transport costs arise from carrying inventory in-transit, from numerous operations connected with frequent and small deliveries resulted from just in time deliveries. Low costs, short time of transport and accepted level of risk are crucial for logistics managers. Focus on customer needs’ satisfaction, order fulfillment, short transit time, on-time delivery; gives transport costs a new dimension. The research was carried out within manufacturing companies in south western Nigeria. The population of the study consists of top management staff, this includes logistics, procurement and marketing managers. The sample of this study consisted 10 Manufacturing companies from the list of fifty (50) quoted companies on the Nigerian Stock Exchange modified by Manufacturing Association of Nigeria in 2005. The data collected was analyzed using of regression analysis. The analysis shows that logistics outsourcing helps manufacturing companies to reduce transport cost. Transport is needed throughout the whole supply chain being the link between supply chain members. Consequently quality of transport service affects the competitiveness of the entire supply chain. The findings revealed efficient transport cost among outbound logistics activities indicating their significant effect on reducing transport cost. The paper recommended that outsourcing be encouraged. This is in order to promote economies of scale which reduces cost, enhances fleet management, as well as customers’ satisfaction.

Keywords: Customer Satisfaction, Fleet Management, Logistic Management, Logistics Services, Outsourcing, Transport, Transport Cost