Critical success factors in business process outsourcing of logistics companies in Kenya

Abstract

As study was carried out on the critical success factors of Business process outsourcing. The study had two objectives: To determine the critical success factors of Business Process Outsourcing in Logistics companies in Nairobi and to establish the challenges of adoption of BPO among logistics companies in Kenya. The findings on each of the three objectives have been summarised as follows.

A census was carried out of all the logistics companies operating in Nairobi. Data was collected through a questionnaire and factor analysis was conducted to establish the main factors and challenges. It was established that there are five critical factors as well as five main challenges. The factors were: investment of international companies in the local economy; internet connectivity; top management support; creation/expansion of a potential niche and necessary expertise. The study also came up with five main challenges that affect the success of BPO among logistics companies in Nairobi. They include: difficulty of assessing savings gained through outsourcing; non-competitive physical structures; coordinating different suppliers; unrealistic expectations from outsourcing providers and communication barriers with supplier.