Service Outsourcing and Performance of Universities in Kenya

Abstract

Outsourcing is a business philosophy that implies entrusting business to other people to perform them on your behalf. The benefits that can be derived from service outsourcing on some services are numerous and firms only need to take advantage of the available opportunities. The objective of the study was to establish the relationship between service outsourcing and performance of the Universities in Kenya. With the specific objectives that include, to determine the extent to which services have been outsourced by Universities in Kenya, to establish the correlation between outsourcing and performance of Universities in Kenya and to investigate the challenges of service outsourcing by Kenyan Universities. Data was collected using questionnaire and was analyzed using descriptive statistics where the data was presented in the form of frequencies, tables, pie-chart and percentages. According to the findings service outsourcing is of paramount significance to the Universities in Kenya. These results imply that Universities in Kenya outsource insurance services, computer and software services and legal services to a large extent. The study findings further showed that the dependent variable (organisational performance) is influenced by outsourcing of legal services, insurance services, computer and software services to a large extent and catering services with security services to a moderate extent. This has to be done carefully by looking at the best record from the service providers. From the study, the researchers found out that service outsourcing improves organizational performance of Universities in Kenya. The main finding on challenges was that Universities are outsourcing key services but have not established how to measure the quality of impact it has in its operations. The most challenging component was proper management and improved accountability. The recommendation in relation to outsourcing was that Universities in Kenya should work towards improving services to its clients through outsourcing of services important services and ensure they are offered in an efficient and effective manner.