Factors influencing outsourcing services in financial Institutions: the case of Equity Bank limited Digo Road Branch, Mombasa County
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With increased technology in the world many companies have resorted to embracing new techniques to reduce cost. Among these techniques is outsourcing which has become rampant with companies outsourcing services across the world. Outsourcing seems like a brilliant idea but what most companies fail to rationalize on are the hidden costs both quantitative and qualitative. This research was undertaken to find out how outsourcing services is conducted and its contribution to service delivery in Equity Bank limited Mombasa. The institution has been carrying out outsourcing for acquisition and provision of various services. Outsourcing has its problems and whether it really contributes to service delivery is what made the researcher carry this study. The purpose of the study was to identify areas which Equity Bank limited has adopted outsourcing, factors affecting outsourcing decisions, establish strategies used by Equity Bank limited in outsourcing, identify challenges encountered by the institution in outsourcing and suggest ways of averting outsourcing challenges. The key focus of the study was to establish the factors influencing outsourcing and its effects on service delivery. The study would benefit other public companies and individuals who may wish to adopt outsourcing as a service delivery strategy. The study adopted a conceptual framework in which the researcher came up with an outsourcing process to explain what needs to be put in place to have a successful service delivery. For the purpose of data collection the validity aVndreliability of the instrument was ensured. The study issued A4~tionnaires to the respondents to obtain data and descriptive statistics was used to inalyze data. The findings of the research were that outsourcing greatly contributes to efficient and consistent service delivery because it allows the institution to concentrate on its core operations and to channel its resources to other important activities. Although (here are problems arising due to outsourcing, the institution has mechanics to most of them for example by fixing tender to good suppliers, the company management would ensure that they receive the best and in return give the best through good service delivery to their customers. The study concluded that the institution indeed depends on outsourcing for efficient and effective service delivery. Factors that influenced the bank to outsource was basically to improve quality, save and restructure costs, reduce time to market, enhance capacity for innovation among others.