Business Process Outscourcing and Performance of Savings and Credit Co-operative Organisations (Saccos) in Nairobi

Abstract

Adoption of business process outsourcing is increasing in world of business, private and public, small and large, governmental and non-governmental. SACCOs need BPOs to streamline their systems and processes. This study sought to establish the influence of ICT enabled business process outsourcing on the performance of SACCOs in Nairobi City County. This is a descriptive research study whose target population was 137 SACCOs in Nairobi County from which 44 were sampled though only 37 responded. Primary data was collected using semi-structured questionnaires. Data analysis involved the use of descriptive statistics of mean, standard deviation, frequencies and percentages. Inferential analysis was done using multiple linear regression analysis. The findings reveal that business processes outsourced mostly was debt collection, internal audit, ICT and human resource. The least outsourced function was credit and loaning. The outstanding benefit of outsourcing was improved businesses concentration on core mandate though there was the challenge of breaches in data privacy. Outsourcing positively and significantly influenced SACCOs’ performance. The study recommended that SACCOs should outsource their non-core functions to improve performance.