Determinants of outsourcing decisions in county governments in Kenya

Abstract

county governments in Kenya. The study was guided by two specific objectives these are to establish the status of outsourcing practices in county governments in Kenya and to establish the determinants of outsourcing decisions in the county governments in Kenya. A descriptive survey of all county government was carried out. The study used census study design to collect data in all the 47 County governments. Primary data was collected through the use of questionnaire administered by the researcher to chief procurement officers. The analysis was done using descriptive analysis. Results were presented in tables and charts. The study findings indicate that all the 47 counties in Kenya do outsource various activities ranging from IT services to garbage collection services and infrastructure development. The study found out that saving on cost and unavailability of internal resources are strong determinants of outsourcing based on the response rate of 64%. Outsourcing also helped counties concentrate on their core activities as per 65% approval of the respondents. The study recommends that county governments should only opt to outsource services when the cost of outsourcing is lower than the cost of providing that service in house. County governments also have the opportunity of delivering better services through outsourcing firms with better resources like skilled workforce and equipment.