The impact of outsourcing strategy on service delivery in Nairobi city county
Abstract
The purpose of this study is to establish the impact of outsourcing strategy on service delivery at
Nairobi City County. The study employed descriptive research design for it portrays an accurate
profile of situations. The study targeted all sectors of Nairobi City County and a census sampling
method was conducted. The study used a semi structured questionnaire to collect primary data.
Data analysis was done to establish whether or not outsourcing strategy affect service delivery.
The responses were coded to facilitate statistical analysis by use of descriptive statistics which
consisted of mean scores and standard deviations. Tables were used to present the data. The
results indicate that correlation between performance and service delivery shows that there was a
strong positive correlation, while a correlation between productivity and service delivery shows
that there was a strong negative correlation. Similarly a correlation between customer
satisfaction and service delivery show that there was a weak positive correlation and is
significant at a= 5% and implies that the increase or decrease in independent variables would not
significantly affect the beta of the firm. The increase in performance has a positive impact on the
beta. The adjusted R2 is 41% and the value of F statistics observed is 3.789 which are higher than
critical value of F- distribution of 1.92 but the model is significant.The study concluded that
productivity Nairobi City County is based on its effectiveness and efficiency. This presents the
ability of a service organization to fulfill its customers demand by doing the right things and
ability to produce a specified output using as few input resources as possible by doing things
right. It was concluded that customer satisfaction is typically the largest asset and the
predominate source of revenue. As such, it is one of the greatest sources of risk to an
organization’s safety and soundness. The study concluded that customer satisfaction shows how
firms are committed to provide quality services to their customers that eventually increase
customer loyalty. The researcher recommends that Nairobi City County should have a clear
performance policy as possible. The managers should be educated on the importance of
these policies since they significantly affect the service delivery of the Nairobi City
County. The researcher further recommends that the Government should review most of
the rules, regulations and by-laws some of which are outdated and affects the
outsourcing and hence the service delivery of Nairobi City County.