Challenges Faced by Bharti Airtel Kenya in Outsourcing of Its Services

Abstract

Outsourcing is a process where a company outsources its operations to a service provider, whose core competence is centered on those processes. Outsourcing has become an important business strategy because it enables businesses to reduce and control operating costs, to improve on company focus, to gain access to world class capability and to free internal resources for other purposes. The purpose of this study was to determine the challenges Bharti airtel faces in outsourcing of its services.

The research was conducted by collecting primary data using an interview guide to collect in-depth data from the members of management across all the departments. The report contains in-depth analysis and interpretation of the data identifying the challenges faced by Bharti airtel Kenya in outsourcing of its services. The study found that top level management was involved in the outsourcing decision making. Focus on core business was considered highly while cost reduction, improved quality of service, increased competiveness and increased flexibility were the key factors when making the outsourcing decision. Outsourcing was considered as a long term strategy to reach certain objectives as opposed to a short term solution.

Findings also revealed that despite of the many benefits of outsourcing, there are challenges. Outsourcing is an expensive business strategy. Cost of hiring professionals is quite high and training staff to get familiar with the outsourced service. Time delay in service delivery poses a challenge in meeting customers' needs. Respondents also agreed on the fear of job loss, security risks were a challenge encountered in outsourcing.

Government policies, cultural and legal barriers all work against the success of a great strategy in business. On dealing with this challenge, a number of methods were adopted, flexible contract terms, confidentiality clause to be included on contracts, deadlines, Service Level Agreements (SLA), contracts and imposing penalties were the most common methods used.