The Challenges of Implementing Business Outsourcing Strategy in East Africa Breweries (Kenya) Ltd

Abstract

The principal objective of this study was to investigate the challenge of outsourcing strategy implementation in East Africa Breweries (Kenya) limited (EABL). Despite the challenges that are faced by EABL in outsourcing strategy the organization has outsourced many non core functions. A interview questions guide was administered to collect the data and respondents were manager of EABL and supervisors of the outsourced service providers. They gave answers to the challenges of the outsourcing strategy in East Africa Breweries (Kenya) limited. Later the solutions how these challenges were not solved. It was considered that the solutions to the challenges were not fully looked at by management of both partners.

It was address as not a major issue. They also mentioned that the management should be fully committed to looking at the challenges and solutions for those challenges otherwise outsourcing would not add value to the organization. The respondent mentioned various benefits for outsourcing and the major one was cost cutting measure. The respondent mentioned the major challenge was fear of staff losing their jobs. Most staff did not to be subjected to the environment of being outsourced therefore they resist that change of the organization. The selection process was not fair and transparent as per the government of Kenya requirements.

There were issues of lack of commitment by the outsourced service provider and loss of control by EABL management. The challenges were less address but the major way the organization tried to sort out the challenges was to draw clear and understandable service level agreements. The service level agreements were included in the contracts for outsourced company. Also the contracts were made more clear on the terms and conditions of the contract.