TABLE OF CONTENTS

DECLARATION .......................................................................................................... i

APPROVAL. ............................................................................................................... ii

APPROVAL. ............................................................................................................... ii

DEDICATION ............................................................................................................ iii

ACKNOWLEDGEMENT ............................................................................................ iv

TABLE OF CONTENTS ............................................................................................. v

LIST OF TABLES .................................................................................................... viii

LIST OF FIGURES .................................................................................................... ix

ABSRACT .................................................................................................................. x

CHAPTER ONE ......................................................................................................... 1

INTRODUCTION ........................................................................................................ 1

1.1 Background of the Study .................................................................................................... 1

1.2 Statement of the Problem .................................................................................................. 3

1.3 General Objectives ............................................................................................................... 3

1.4 Specific Objectives ............................................................................................................... 3

1.5 Research Questions ............................................................................................................ 3

1.6 Scope of the study ................................................................................................................ 4

1. 7 Significance of the study ................................................................................................... .4

1.8 Conceptual Framework ....................................................................................................... 5

CHAPTER TWO ......................................................................................................... 6

LITERATURE REVIEW .............................................................................................. 6

2.0 lntroduction ............................................................................................................................. 6

2.1 Outsourcing ............................................................................................................................ 6

2.2 Reasons for undertaking outsourcing of projects/services ...................................... 7

2.2 Do outsourcing programs achieve their stated objectives of improving organizational performance, productivity, market share, and quality? ............... 11

2.3 Factors associated with the success or failure of outsourcing programs .......... 15

2.4 Other literature on the subject ........................................................................................ 18

CHAPTER THREE ................................................................................................... 25

RESEARCH METHODOLOGY ................................................................................ 25

3.0 lntroduction ........................................................................................................................... 25

3.1 Research Design ................................................................................................................ 25

3.2 Study Area ............................................................................................................................ 25

3.3 Target population ................................................................................................................ 25

3.4 Sample size .......................................................................................................................... 26

3.5 Sample size selection ....................................................................................................... 26

3.6 Data collection ..................................................................................................................... 27

3. 6. 1 Data Collection Methods ............................................................................. 27

3.6 Procedure ............................................................................................................................. 27

3.7 Data processing and analysis ......................................................................................... 28

CHAPTER FOUR ..................................................................................................... 29

DATA PRESENTATION AND ANALYSIS ............................................................... 29

4.0 lntroduction ........................................................................................................................... 29

4.1 Demographic information ................................................................................................. 29

4.2 Why Does the Bank Undertake Outsourcing of Projects/Services? ................... 31

4.3 Do Outsourcing Programs Achieve Their Stated Objectives Of Improving Organizational Performance, Productivity, Market Share, And Quality? ........... 35

4.4 Factors Associated With the Success or Failure of the Stanbic Bank Outsourcing Programs 

CHAPTER FIVE ....................................................................................................... 41

SUMMARY, CONCLUSIONS AND RECOMMENDATIONS .................................... 41

5.0 lntroduction ........................................................................................................................... 41

5.1 Summary ............................................................................................................................... 41

5.2 Conclusions .......................................................................................................................... 42

5.3 Recommendations ............................................................................................................. 44

5.4 Areas for further Research .............................................................................................. 45

BIBLIOGRAPHY ...................................................................................................... 46

APPENDICES .......................................................................................................... 48

APPENDIX A: QUESTIONAIRE .............................................................................. 48

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/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