The effect of business process outsourcing on the Performance of telecommunication firms in kenya
The study sought to establish the effect of business process outsourcing on the performance of telecommunication firms in Kenya. The objective of the study was to determine effect of business process outsourcing on the performance of telecommunication firms in Kenya with a focus of telecommunication in this study as the telephonic communication of audio, video, or digital information over a distance by means of radio waves, optical signals, etc, or along a transmission line. The research adopted a descriptive survey. The research targeted the three mobile telecommunication firms in Kenya i.e. safaricom, Airtel and Orange. Primary and secondary data was used. Secondary data was collected from financial statements of the telecommunication firms while Primary data was collected using a semi structured questionnaire. The questionnaire was administered through the drop and pick later procedure and the respondents were senior managers and managers in various departments that are involved in outsourcing. The response rate was 70%.Data was analyzed using both descriptive and inferential statistic consisting of frequency distribution tables and percentages, measures of central tendency such as mean and measures of dispersion such as standard deviation and regression analysis. The study established that most respondents were men. Most of the respondents were managers between reproductive ages of 31-45 years and had post secondary education. The study established that several business Processes were outsourced in the three mobile telecommunication firms and that all the four business process outsourcing strategies are practiced in the three firms. It was also established that BPO has several challenges with the greatest challenge being Loss of control above the corporate business processes and Vendor reputational risk. The study recommends that telecommunication companies look into their outsourced services and re-evaluate the value add to productivity with a view of promoting its contribution to productivity. This is based on the fact that whereas outsourcing had effect on productivity, the effect was not significant. The study was limited to three mobile telecommunication firms hence the study may not be representative of the other telecommunication firms. The study recommends that in future a similar study be conducted in other organizations and economic sectors where outsourcing has been carried out so as to find out if the same results would be obtained.