An investigation into implementation of outsourcing strategy by selected manufacturing firms in the chemical and allied sector in Kenya
Abstract
Outsourcing has expanded considerably over the years. It involves the act of transferring some of
an organization’s recurring internal activities and decision rights to outside providers, as set forth
in a contract. Whilst its merits continue to be debated by academicians and practitioners alike,
and seen by many as a convenient way of minimizing costs and enhancing efficiency in the
production process, the implementation process clearly remains unique to any given
organization. This study attempted to investigate the implementation process of outsourcing as
carried out by different firms in the chemical and allied sector in Kenya.
The study employed a survey research design to investigate the research problem. The sample
frame was composed of operational mangers, accountants, production controllers, procurement
officers, supplies and supply chain staff. The study posed a series of questions in relation to
implementation of outsourcing strategy to respondents who informed the final results.
While outsourcing as a business strategy is highly practiced in most companies, there are
attendant challenges and the need to identify and promote best practice as highlighted by the
various respondents. Most companies outsource so as to increase productivity and hence
profitability by freeing up management time and minimizing costs. Fluctuation in pricing, quality
uncertainty and affordability of outsourcing are major challenges to firms in implementation of
outsourcing strategy
Citation
MBA ThesisSponsorhip
University of NairobiPublisher
School of business