Impact Of Outsourcing On Organizational Performance (A Study Of Mtn, Airtel, And Etisalat In Umuahia)

ABSTRACT

The study examined the impact of outsourcing on organizational performance, a study of MTN, Airtel and Etisalat in Umuahia. The specific objectives were to identify the effect of business process outsourcing on by MTN, Airtel and Etisalat performance in Umuahia, to ascertain the benefits of technology outsourcing to MTN, Airtel and Etisalat performance in Umuahia, to establish the relationship between outsourcing and organizational performance in MTN, Airtel and Etisalat in Umuahia, to determine the effect challenges of outsourcing on performance of MTN, Airtel and Etisalat in Umuahia. Primary data wassourced fromquestionnaires that were issued to staff of MTN, Airtel and Etisalat in Umuahia. Descriptive survey design was adopted by the study. The questionnaire was distributed to staff of MTN, Airtel and Etisalat in Umuahia. A test-re-test was conducted to ensure validity and reliability of the data. The data were analyzed using simple percentage, frequency, simple regression. The descriptive result show that  majority  53.2%,  58.5%,  57.4%, 53.2%, 47.9%  and 48.9% of the respondents strongly agree that support, printing, production, advertising, technology and distribution service were business process outsourcing affecting  MTN, Airtel and Etisalat  performance in Umuahia, Abia State. Majority  47.9%,  53.2%,  53.2%, 48.9%, 42.6%, 48.9%, 47.9% and  45.7% of the respondents strongly agree that  reduction in operating cost, increased  productivity and efficient,  flexibility, better quality of product and service, customers retention, strategies planning and flexibility, access to expertise and  focus on core business were the benefit  of technology outsourcing on MTN, Airtel and Etisalat  performance. Majority agreed that 53.2% and 53.2% of the respondents strongly agree that there is relationship between outsourcing and organizational performance. Majority 47.9%, 53.2%, 53.2% and 48.9%, 42.6%, 48.9%, 47.9%, 45.7%, 42.6%, 48.9%, 47.9% and 45.7% of the respondents strongly agree that loss of management control, loss of internal expertise skill, risk to succession planning, doubtful cost savings, vendor, failure to deliver, cost of delayed delivery or non-delivery, disclosure of corporate secrets, cost escalation, interest conflict with outsourcing partner, loss due to disaster and recovery cost. The empirical result show that  there is significant difference between support, printing, production, advertising, technology distribution services   and MTN, Airtel and Etisalat  performance in Umuahia, that reduction in operating cost, increased productivity and efficient, flexibility, better quality of products and services, customer satisfaction, technological advancement, customers retention, strategic planning and flexibility, access to expert have positive and  significant  effect on performance of MTN, Airtel and Etisalat in Umuahia, there is positive relationship between outsourcing and organizational performance in MTN, Airtel and Etisalat in Umuahia and that loss of critical skills, leakage of confidential information, pirates, plagiarism, vendor failure to deliver, cost of delayed delivery or non-delivery, disclosure of commercial secrets, cost escalation, interest conflicts with outsourcing partners, loss due to disasters and recovery costs had negative and  significant  effect on  performance of MTN, Airtel and Etisalat in Umuahia. It was recommended that top managers of telecommunication companies understudied should paid more attention to the identified main factors that constitute critical drivers like reduction in operating cost, increased productivity and efficient, flexibility, better quality of products and services, customer satisfaction, technological advancement, customers retention, strategic planning and flexibility, access to expertand to consider them while planning the strategy of outsourcing.