Effect of Outsourcing on Organizational Performance of Selected Quoted Deposit Money Banks in Enugu State, Nigeria.
Abstract
This study focuses on the effect of Outsourcing human resources on organizational performance in selected quoted deposit money banks in Enugu state, Nigeria.
The objectives which guided the study were to determine the nature of the relationship between man-power development and organizational productivity in selected deposit money banks in Enugu state Nigeria, to access the effect of innovation on customers’ satisfaction in selected deposit money banks in Enugu state, Nigeria.
To examine the effect of cost reduction on organizational market share in selected deposit money banks in Enugu state, Nigeria, and to investigate the relationship between employees’ focus on core-activities and organizational competitive advantage in selected deposit money banks in Enugu state, Nigeria.
The descriptive survey design research methodology was adopted for the study. A five point Likert scale-type questionnaire was constructed, and administered among staff of selected money deposit banks in Enugu state, Nigeria, manually.
The research hypotheses were tested using Pearson production moment correlation coefficient and linear regression with the aid of SPSS (statistical package for social science).
The results of the analyses showed that there is positive significant relationship between man-power development and organizational productivity (r = 0.712, p<0.05),product innovation has significant effect on customers’ satisfaction (r = 0.823, p< 0.05).
Cost reduction has positively affected organizational market share (r = 0811, p <0.05); and there is significant relationship between employees’ focus on core-activities and organizational competitive advantage ( r = 0.611, p <0.05) in selected deposit money banks in Enugu state, Nigeria.
Introduction
Background Of Study
Outsourcing as a concept is not a new phenomenon, as many would believe. Thousands of years ago, our ancestors had understood the need for outsourcing.
They realized that it would be impossible for them to be an island –to fulfill all their needs by themselves, but they would have to depend on someone else to serve them.
The service provider possessed specialized skills, which enables him or her to do the work faster, cheaper and more efficiently.
So, we observed that in early societies, every man had a part to play- he could be a farmer, a merchant, a soldier or a barber. He was, in modern parlance, a client, service provider or freelancer (European Commission, 2003).
The great industrial revolution between 1750 and 1900 that took place in Europe provided much impetus to the development of outsourcing.
This period saw manifold increase in the production of goods and services; the market for them increased and profit were like never before.
Many companies began to outsource such activities like accounting, insurance, engineering, legal needs, etc. to specialized firms. These firms were within the country and not offshore (Gilley, 2000).
Middle of the 20th century saw many political and economic changes combined with the development of faster means of transportation. Distance began to matters less.
Manufacturing of low costing toys and electronic goods, apparels, etc were outsourced to lesser developing countries. The political set up had changed considerably.
Many countries in Asia had become free. Outsourcing was a welcome development as it benefited the developing economies by increasing employment and income levels of the workers.
References
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