The Influence of Ict Outsourcing on Performance of Profit Making Parastatals in Nairobi

Abstract

The objective of this study was to determine the influence of ICT outsourcing on performance of profit making parastatals in Nairobi. The population was 55 parastatals and the study was a census survey. The study used primary and secondary data. Primary data was collected through structured questionnaires. The response rate was 55%. The study used descriptive and cross-sectional research design. The results of the study found that the use of ICT is central in the everyday operations of parastatals. Majority of the parastatals outsource so as to improve efficiency and focus on core competence. The study established that there is a strong and positive relationship between ICT outsourcing and performance. The study recommends that there should be emphasis on internal staff capacity building so that internal staff can offer value in the mid and long term, budgetary allocation of ICT outsourced functions should be directed to research and development and there should be emphasis on integrity and professionalism during recruitment and tendering process.