Outsourcing And Organisational Performance A Case Study Of Stanbic Bank Uganda Limited

ABSRACT

The study sought to investigate the effect of outsourcing on organizational

performance. The study was guided by the following research objectives, to

investigate whether the bank undertakes outsourcing of projects/seNices, to

establish whether outsourcing programs at the bank achieve their stated objectives

of improving organizational performance, productivity, market share, and quality and

to investigate the factors that are associated with the success or failure of

outsourcing programs.

The study findings showed that the bank does carry out outsourcing of seNices from

third party seNice providers as shown by the greater majority of respondents. The

bank though did not suffer adverse disadvantages of outsourcing as only 46.15% of

the respondents believed that the bank faced disadvantages as a result of its

outsourcing of projects/seNices to third parties. Instead the bank's outsourcing

programs did offer the bank rewards as was shown by just over 92% of the

respondents believing that outsourcing benefited the bank. It was thus concluded

that the bank's outsourcing programs marginally satisfied the bank's outsourcing

objectives.

The findings also showed that when it came to outsourcing management, the bank

was effective and thus concluded that factors that were considered by the bank

before outsourcing were Cost restructuring, Quality Appraisal, Current Employee

skills, Appraisal process and legal issues, Staffing issues and Risk management.

Major recommendations to the study were that the bank should reappraise its

objectives for seeking to outsource particular functions of the business. The bank

should invest in further training for its own personnel on core aspects of what

seNices the bank carries out in-house and what it out sources. This would also act

as an incentive to the current staff who may not feel completely secure in their jobs.

This insecurity counter acts marginal gains that outsourcing may be providing to the Jank in terms of productivity.