| dc.description.abstract | The major changes in the way business is done globally ranging from the growth of borderless
multinational corporations, increased competitive pressure, environmental dynamism, the advent
of the World Wide Web and e-commerce among others call for changes in the organisation of
internal business processes and practices. A key concern for commercial bank executives is
managing costs and process efficiency in order to remain competitive. This has seen an
escalation in a number of modern philosophies such as business process outsourcing.
Outsourcing is a widely accepted business practice by organizations in an effort to improve film
performance by cutting costs and focus organisational efforts and resources on core processes.
With time commercial banks are moving beyond the outsourcing of non-essential processes. For
example there is evidence of increased outsourcing of IT services among commercial banks in
keeping with global trends. The increased outsourcing has inherent benefits associated with cost
saving and efficiency but also have inherent risks attached. To date no research that has
exclusively focused on the outsourcing risk management, especially in the banking industry
which is one of the most technology-intensive industries. This paper set out to fill this gap by
interrogating the management of outsourcing risk in Kenyan commercial banks. The findings of
the study support the existence of a moderate positive relationship between BPO and outsourcing
risk management which has a cascading effect on performance. The inherent costs and risks
associated with business process outsourcing do not exceed the positive effects. It is thus implicit
that BPO enhances the performance and image of commercial banks in Kenya | en_US |
