| dc.description.abstract | Outsourcing of services has become a common practic
e among commercial banks in
Kenya and this is due to the various benefits that
accrue to an organisation as a result of
outsourcing. Contracting out production of goods an
d service to third party providers has
been a growing concern by organizations. The need f
or outsourcing by organizations is to
enable them concentrate on their core business acti
vities, and therefore delineate the
activities that are none-core and which would be ge
nerally expensive to undertake to
other service providers. Just like other organizati
ons, commercial banks in Kenya have
continuously been involved in the outsourcing of va
rious services; amongst them the
logistic arm of their operations to other banks. Th
e implied need for the process of
logistic outsourcing by the commercials banks is to
increase their performance level, and
therefore help improve their productivity, competit
iveness and profitability in general. In
the past the various studies covered have not exten
sively delved into logistics outsourcing
practises in relation to the performance of commerc
ial banks. As a result, this study
explored outsourcing practises viz a viz the perfor
mance of commercial bank in Kenya.
The population of the study in this research was al
l the (43) commercial banks in Kenya.
A census method was applied to come up with the sam
ple size since the target population
was relatively small and it involved a descriptive
research design. The primary data was
collected from Logistics and procurement managers o
r their equivalent by the use of a
standard questionnaire which was administered by ‘d
rop and pick’ method. The response
rate was 69.8%. The results established that the co
mmercial banks were outsourcing
transportation management, warehouse management and
material handling management.
The commercial banks opted to outsource their servi
ces due to its advantages and its
possible influence on organizational performance, a
s it enables the commercial banks to
focus on their core competencies. The outsourcing p
ractises adopted by the commercial
banks will in the long run determine their survival
as they would seek to reduce operating
costs, improved customer satisfaction and timely de
livery of services to clients which in
turn will increase productivity and reduce lead tim
e and improved profits. The study
confined itself to commercial bank in Kenya and the
findings may not be applicable in
other sectors as a result of its uniqueness of comm
ercial banks. It is therefore
recommended that the study is replicated in other s
ervice sector to establish the logistics
outsourcing services and performance. | en_US |
