Impact of outsourcing of training services on supply chain performance in government parastatals: A case study of Kenya Power & Lighting Company (KPLC) limited
Abstract
Outsourcing is growing at a rapid rate throughout the world because organizations view it as a
way to achieve strategic goals, improve customer satisfaction and provide other efficiency and
effectiveness improvements. Outsourcing assists management focus all their intellectual
resources, expertise and time on the distinctive competencies that give the firm an edge in the
market. With the increasing globalization, outsourcing has become an important business
approach, and a competitive advantage may be gained as products or services are produced more
effectively and efficiently by outside suppliers.
The objective of the study was to determine the impact of outsourcing of training services in
Kenya Power and Lighting Company. The research design for the company was descriptive
research design. Data was collected using a questionnaire which consisted of both open and
closed ended questions. The data collected was analyzed using descriptive statistics and
classified, tabulated and summarized using descriptive measures, percentages and frequency
distribution tables and graphs.
The findings of the study was that the the company considers past supplier performance,
competence, cost, flexibility, right time, qualification, professionalism, experience, reputation,
right quality of service and type of relationship before deciding the company to outsource the
service to. The performance of supply chain was being influenced by quality of service, supplier
management, supplier relationship, supplier selection, time service delivered and the internal
assessment of criticality of business activities. The risks facing the company as a result of
outsourcing training services was found to be loss of command of outsourced service, over
reliance of external parties, loss of confidentiality, loss of control in decision making, limited
flexibility, low quality work and limited time. The benefits the company derived from
outsourcing the service was found to be reduced costs and improvement of its competitive
position, increased productivity, focusing on the core competence and strategic flexibility
through changes in external flexibility, functional flexibility, change in product range, workplace
flexibility and internal flexibility
Citation
MBA Thesis 2012Sponsorhip
University of NairobiPublisher
School of business