Outsourcing and Organizational Efficiency. A Case Study of Phoenix Petroleum Uganda Limited
Loading...
Date
2010-12
Authors
Journal Title
Journal ISSN
Volume Title
Publisher
Kampala International University, bachelors degree in Supplies And Procurement Management
Abstract
Outsourcing is the strategic use of outside resources to perform activities that are usually
handled by internal staff and resources. This study was designed to explore the
relationships between outsourcing and organizational efficiency at Phoenix Petroleum
Uganda Limited. The major objectives of this study therefore were to find out; Reasons
for outsourcing in the organization, the impact of outsourcing on organizational
effectiveness and the challenges to outsourcing at Phoenix Petroleum Uganda Limited.
Twenty employees of all levels of the company were interviewed and the findings were
analyzed.
The results show that the organization generally considered successful at outsourcing.
The major reasons for outsourcing at the organization were; cost reduction, quality
control, reducing risks; focus on core competencies, failure to have the required resources
internally and the reduction of head counter employees in the organization. The major
impact of outsourcing in the organization were; improved quality, cost reduction,
improved reliability and delivery, productivity and shorted production cycle. Finally, the
respondents identified the fear of change, including fear of job loss, long term contractual
inflexibility, poor choice of outsourcing partners, poorly managed contracts and hidden
costs and risks as the most the major challenges to outsourcing efforts. However, while
the organization achieved significant improvement in organizational performance, it had
not reached the magnitude of improvements ascribed to outsourcing.
Description
A Research Dissertation Submitted In Partial Fulfillment of the Requirement for the Award of the Degree of Supplies and Procurement of Kampala International University
Keywords
Outsourcing and Organizational Efficiency, Phoenix Petroleum Uganda Limited