The impact of outsourcing on Organisational performance A case study of Stanbic Bank Uganda Limited.

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Kampala International University, College of Economics and Management Sciences
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/services, 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 services from third party service 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/services 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 services 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 bank in terms of productivity.
A research report submitted to the School of Business and Management in Partial Fulfillment for the Award of a Bachelor of Human Resource Management of Kampala International University.
Stanbic Bank Uganda Limited, Impact, Organisational Performance