| dc.description.abstract | This was a study ofthe relationship between Business Processing Outsourcing and
cost cutting at Standard Chartered Bank inNairobi Province, Kenya. Over time, it
has become hard to do business due to ever rising operating costs. The cost of
labor, electricity, water and other amenities keep rising year after year. Owing to
this, companies have had to look for ways of minimizing those costs yet trying to
retain quality of goods, products and services.
Standard Chartered Bank in particular adopted Business process Outsourcing
which is a process of contracting a third party to perform some functions on behalf
of the client this being the bank. The adoption was in a bid to cut costs and fmally
increase the revenue growth. This study was carried out to establish whether the
bank actually saves costs by outsourcing or not.
The research used descriptive studies design because the study was largely
qualitative. A sample of thirty respondents from three departments was used to
represent a total of two hundred employees. Their views of whether BPO leads to
cost cutting in cleaning services, IT services, direct sales and recruitment services
were used to make inferences and deductions. Data collection was through survey
method whereby a questionnaire was administered to both the managers and the
staff in the lower levels. Data analysis was through frequency tables and results
were presented inpercentages.
The research found out that outsourcing VarIOUSservices especially the core
functions did not lead to cost cutting at all. The opposite was found to be true. It
was concluded that outsourcing core functions like IT was not the way to save
costs in an already existing company. Outsourcing non core services like cleaning
was found to save costs. The study recommended outsourcing non-core services in
already existing businesses and outsourcing some core functions in upcoming
ventures. | |
