Challenges Of Implementing Outsourcing Strategy By Commercial Banks In Kenya
Abstract
The study is a comprehensive evaluation of the challenges encountered when
implementing the outsourcing strategy by commercial banks in Kenya. Various variables
were used to determine how effective commercial banks are in implementing the
outsourcing strategy and establish challenges faced by commercial banks in
implementing the outsourcing strategy. The study primarily targeted all the 44
commercial banks in Kenya and 66% responded.
The study concluded that outsourcing has resulted in improved focus on core
competence, better operational control and efficiencies, gaining competitive advantage,
gaining access to new technology and skills, risk management, quality control, increased
focus on core competence and increased productivity. It also concluded that the factors
that greatly influence the successful implementation of the outsourcing strategy are clear
vendor selection process and a clear existing policy on outsourcing. The greatest
challenges experienced the commercial banks in the outsourcing implementation process
are inadequate resources availed for the implementation processes and ineffective
management of the process.
The valuable information gathered in this study will guide and improve managerial policy
on planning, directing, staffing, monitoring and control, not only in the banking industry
but in other sectors as well. For outsourcing to remain successful and sustainable for
commercial banks managers should provide ample resources for the implementation
process and deal with it effectively.
Citation
Master of Business AdministrationPublisher
University of Nairobi