Challenges of Strategic Outsourcing by Mobile Telecommunication Companies in Kenya
Abstract
Various studies have been undertaken on factors that motivate companies to outsource but
the challenges remain inherent of such strategic decisions. Increased expenditures and the
growing number of players in the telecommunication industry have created many challenges
to the telecommunication companies. In order to stand out from the competition and to have
higher earned average revenue per user (ARPU), telecommunications operators are looking
for all possible ways to cost-cut and pass on the benefits to end customer through better
services at lower prices. The study noted that strategic outsourcing as much as the process
had a number of whip hands as there were several short comings that should be taken into
consideration. The shortcomings that were analyzed in this research were loss of control,
operational risks, business disruption and lack of well-defined responsibilities. It was noted
that strategic outsourcing led to loss of control over how certain services are delivered; this
was noted to raise the company’s liability exposure. From the findings the researcher
recommends the firms to carefully consider the vendor to partner with as well as the
dynamics inside your own organization, and how your outsourcing strategy impacts your
own people. Human capital goals must be aligned with outsourcing goals. You’ll want to
optimize headcount while retaining key talent to execute the business. Careful planning and
consideration helps to ensure your outsourcing strategy is successful. An area of further
research is outsourcing to related partners. Further research should be considered on the
challenges facing mobile telecommunications organizations that outsource their activities to
related parties or parties with similar parent organizations
Citation
Degree of Masters of Business Administration (MBA), School of Business, University of NairobiPublisher
University of Nairobi