Outsourcing Management: The Dilemma of Small and Medium Enterprises

Outsourcing Management: The Dilemma of Small and Medium Enterprises.

ABSTRACT  

The practice of outsourcing management in industry and organization is universally acknowledged as effective instruments for competitiveness. Even in small and medium enterprises (SMEs). This study tries to look at the role outsourcing management can play in the development of small and medium enterprises (SMEs), their current dilemma that prevent them from becoming active players in the regional and global markets.

The study also highlights the benefit, risk and the kind of measure that need to be taken to enhance their effective participation in the modern management technique (outsourcing) The study draws on empirical studies undertaken on selected small and medium enterprises in Benin City and part of Lagos state. The investigation supplies a realistic result on the dilemma of outsourcing management to small and medium enterprises. (SMEs). 

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TABLE OF CONTENT

Certification – – – – – – – – i
Dedication – – – – – – – – ii
Acknowledgement – – – – – – iii
List of table – – – – – – – iv
List of Figure – – – – – – – v

Chapter One
1.1 Background of the study – – – – 1
1.2 Statement of Problem – – – – – 5
1.3 Objective of the research – – – – – 7
1.4 Research Question – – – – – 8
1.5 Hypothesis – – – – – – – 8
1.6 Significance of the study – – – – – 10
1.7 Scope of the study – – – – – 12
1.8 Definitions of terms – – – – – 12

Chapter two
Literature Review – – – – – – 16
2.1 Introduction – – – – – – 16
2.2 Concept of Outsourcing – – – – 17
2.3 Outsourcing Management – – – – 19
2.4 Outsourcing Management in private or public sector of the economy – – 20
2.5 Business Process Re-Engineering (BPR) – – 21
2.6 Why do government companies prefer to outsource – – – – 23
2.7 Factors that Influences Decision to Outsource – – – – 24
2.8 Process Outsourcing – – – – 27
2.9 Deciding to Outsource – – – – 28
2.10 Decision to outsource – – – – 29
2.11 Reasons for outsourcing – – – – 30
2.12 The Role of Managers in the outsourcing vision – – – – 31
2.13 Transition to Outsourcing – – – – 33
2.14 Creating the Enabling Environment to achieving the outsourcing vision – – 33
2.15 Adopt the 7 –Best Practice of Outsourcing- – 36
2.16 The Small and Medium Enterprises – Concept 38
2.17 The Role of Small and Medium Enterprises (SMES) – – – – 42
2.18 Advantages of small and medium scale enterprises – – – – 43
2.19 The Dilemma of Small and Medium Size Enterprises in Nigeria – – – – 44
2.20 Constraining of Small and Medium Enterprises Development in Nigeria – – 45
2.21 How Small and Medium Enterprises can Benefit from the Policy of outsourcing – – 51
2.22 A Comparative Analysis of Outsourcing Globally – France, Italy and Japan. – – 53
2.23 Summary of the Literature review – – 60
References – – – – – – 61

Chapter 3
Research Methodology – – – – – 63
3.1 Introduction – – – – – – 63
3.2 Research Design – – – – – 64
3.3 Sampling Procedure – – – – – 65
3.4 Sources of Data – – – – – 65
3.5 Statistical tools for Analysis – – – – 66
3.6 References – – – – – – 68

Chapter 4
4.1 Presentation and analysis of Data – – – 69
4.2 Testing of Hypothesis – – – – 70

Chapter 5
Summary of Finding, Recommendation and conclusion – – – – – – 80
1.1 Summary of Finding – – – – – 82
1.2 Recommendation – – – – – 83
1.3 conclusion – – – – – – 85
Appendix
References

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BACKGROUND OF THE STUDY  

As companies’ attempts to focus on core competences, many are considering outsourcing various aspects of their in-house operations. The rapid growth in outsourcing has occurred because organizations are struggling to cope with the demands on their skills. Aoki 1988- says when products becomes increasingly differentiated and renewed, the best strategy appears to focus on core competences and let other firms deal with production of other parts, machine maintenance or distribution.

Almost every organization outsource in some way. Typically, the function being outsourced is considered non-core to the business. The decision to outsource is often made in the interest of lowering firm or making better use of time and energy costs, redirecting or conserving energy directed at the competences of a particular business, or to make more efficient use of land, labour, capital, (information) technology and resources.

It is essentially a division of labour. Although outsourcing has been around as long as work specialization has existed, in recent history, companies began employing the outsourcing model to carryout narrow functions that could be done more efficiently and therefore more cost-effectively by other companies with specialized tools and facilities and specially trained personnel.

Currently, outsourcing takes many forms; organizations still hire service providers to handle distinct business processes or whole operations such as benefits management. Companies have latched onto outsourcing as a route to almost immediate savings and quality improvement. 

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REFERENCES

Agwu Akpala (1990) Management: An Introduction and the Nigerian
Perspective. Enugu Precision Printers and Publishers.
Alessandro, I. and Sandrine, L. (2004) Outsourcing and information
Management. A Comparative Analysis of France, Italy and Japan in both
small and large firms: A Publication of European Journal of Comparative
Economics Vol.1, No.1.
Armstrong Michael (2006) Human Resource Management Practice 10th
Edition. Kogan Page Ltd United Kingdom.
Armstrong Michael (2000) Outsourcing Management Reactions for the
Acquisition of Federal Facilities, 500 Fifth N. W. Washington D.C.
Asmelash Beyene (2002) Enhancing the competitiveness and
Productivity of Small and Medium Scale Enterprises (SMEs) in Africa:
Analysis of Differential Roles of National Governments through
Improved Support Services. CODESRIA, African Development, Vol.
XXVII, No. 3.
Bamkole (2005) “Small and Medium Scale Enterprises Access to
Finance” A paper presented at the SMEs Conference Organized by the
Lagos Business of Pan African University.
Beyene, A. (2000) “support services for enhancing competitiveness of
African SMEs in regional and global markets: The case of Mauritus
Unpublished report, ECA.
Duening, NT, Click, L.R. (2005) Essentials of Business process
Outsourcing, Canada. John Wiley & Son Inc.

StudentsandScholarship Team.