Author: Constance Buah
Lecturer, Department of Marketing, Procurement & Supply Chain Management,
University College of Management Studies, Accra, Ghana
email: constanceekuabuah@yahoo.com
Abstract
The research observes the effects of outsourcing on the performance of organizations. Importantly, doubts stay as to how outsourcing practices affect organizational outcomes, whether some practices have stronger effects than others, and whether paired among such practices can further improve organizational performance. The objectives of the study were to determine the effect of outsourcing on cost efficiency in Societal Generale (SG) Bank Limited, to assess the effect of outsourcing on productivity in Societal Generale (SG) Bank Limited and to estimates the effect of outsourcing on profitability in Societal Generale (SG) Bank Limited. The methodology was based on qualitative and quantitative analysis of the financial data of the selected organizations for a period of four years and the use of other moderating factors to assist assess the organizations performance. The research employed the use of questionnaires, which included the dichotomous and the rating scale which was easier to administer to the respondents and also saved time. The main function or personnel being outsourced that emerged from the study was security and then pay roll activity. These outsourced functions cut across all the organizations selected for the study. It also appeared that, the key factors that influenced the choice to outsource a function/activity by management was to reduce cost and also to allow staff to concentrate on the core activities of the institutions. The activities outsourced were peripheral activities that could easily be peeled off without much disorientation to the whole organizational set up. Security was found to be the most outsourced function and interestingly there is a spring up of many security companies. Government is therefore entreated to prepare rules to improve the operations of these companies to enable them create job opportunities to our teeming unemployed youth to help develop Ghana.
Keywords: Outsourcing, Sourcing, Organizational Performance
