Legacy Systems Cost Management Practices and Performance at Nairobi City Water and Sewerage Company

Abstract

Although technology is critical for many companies and institutions, determining if updates or full replacement is the best option can be complicated. Transitioning to a modern system without having a detrimental effect on the organization or draining money can be difficult. Upgrading technology and moving away from a legacy system will cost an organization in a variety of ways. Maintaining legacy systems that have outlived their utility, on the other hand, is usually much more expensive. The costs of hanging on to older structures and using obsolete technologies have a financial and risk effect on businesses. Thus the main intention of this research project was analyzing how legacy systems cost management practices affects the performance of Nairobi City Water and Sewerage Company (NCWSC). The following objectives were used; to determine the extent to which legacy systems cost management practices have been adopted at NCWSC, to establish the relation between legacy systems cost management practices and performance at NCWSC and to establish the challenges facing legacy systems cost management practices adoption at NCWSC. The research adopted the system theory of profound knowledge, technology acceptance model and the Process approach theory. A descriptive survey design was employed in the study. The study population was the 997 management staff at NCWSC. The sample size was 286 arrived at using Yamane formula. Questionnaires were used to collect primary data, which were sent by email through Google forms. The data was analyzed using descriptive statistics such as the mean and standard deviation as well as inferential statistics like correlation analysis and regression analysis. Restructuring, ordinary maintenance, migration and discarding showed a positive substantial impact on performance at NCWSC. Regression analysis found that the collective adoption of legacy systems cost management practices was responsible for 64.2 percent of the changes in performance at NCWSC. According to the findings of this survey, legacy systems cost management practices are critical for firms looking to enhance their performance. Managers as well as board members of NCWSC are advised to continue practicing restructuring, ordinary maintenance, migration and discarding in order to enhance their performance. It is also suggested that the management develop sound policies to assist them in overcoming the problems of legacy systems cost management practices.