| dc.description.abstract | This study sought to determine the extent of application of BPO strategy among commercial
banks in Kenya and to establish the challenges/risks facing Banks in Kenya in implementing the
adopted BPO strategies. The study was a descriptive cross sectional survey and a census of
commercial banks in Kenya was done. The researcher used primary data sources. A
questionnaire was sent to all forty three commercial banks operating in Kenya.Descriptive
statistical tools were used to analyze the data.From the study findings, results indicate that
Automated Teller Machine (ATM) services are the most outsourced function in the sector, while
customer account processing is the least outsourced function. Banks associate outsourcing
activities with high reputational, operational, strategic and contractual risks. Outsourcing benefits
highlighted are: freeing of resources, cost reduction, access to specialised vendors, focus on core
competence, flexibility and improved services. Results indicate that bank size measured by the
number of permanent employees and branch network is significantly associated with
outsourcing decisions. The findings imply commercial banks in Kenya can improve their
business performance through implementation of outsourcing on its non-core activities.The
findings have regulatory policy implications, and in particular the urgent need for formulating a
guideline to regulate the apparent proliferation of outsourcing practices in the Kenyan banking
sector. The study recommends that for commercial banks to succeed in their outsourcing
strategy clear communication is a must to all stake holders, job quality should be a priority,
there should be realistic achievable service level agreements so that the work is done
professionally and in good time. | en_US |
