Effect of Outsourcing on the Performance of Telecommunication Companies.

Abstract

Over the years, largely it has been noted that a lot of organisations are embarking on outsourcing as a strategy to improve the performance of the organisation so as to become competitive in a turbulent business environment but some still suffer in relation to their goal achievement; lower productivity, lower quality, unstable profits and capacities grossly underutilized. This research focuses on presenting the findings from an analysis of the effect of outsourcing on telecommunication companies using a descriptive survey research design. The underlying objectives of the research were to identify the activities outsourced, ascertain reasons telecommunication companies outsource and to determine the competitive advantage derived from outsourcing. The Resource-Based View was used to derive a theoretical framework to determine the key influences outsourcing as a process had on the selected organisation's performance. Thirty questionnaires were distributed using non probability sampling techniques namely convenience and purposive sampling techniques. The questionnaires were distributed among the middle and lower-level management. The feedback was analyzed using Microsoft Excel for easy comprehension of facts. The findings have shown that telecommunication companies that developed collaborative relationships with their suppliers achieved higher levels of success with outsourcing. Additionally, outsourcing had a great impact not only on the cost reduction but also on other goals of operational strategies such as focus on core competencies, improve profitability and productivity which makes it become inherently more strategic. In view of the findings, the researcher recommended telecommunication companies to ensure costs of managing the outsourcing process does not outweigh the benefits of outsourcing and identify if outsourcing is worthiness’ in the organization. To conclude the research, further research was suggested by the researcher to be done in other organizations located out of Zimbabwe for validation of the findings.