The Effect of Outsourcing on the Performance of Telecommunication Companies in Uganda Case Study: Africell Uganda

Abstract

The study was focused on the effect of outsourcing on performance of telecommunication companies in Uganda. The study objectives were; to examine the effect of project management outsourcing on performance of telecommunication companies in Uganda, to assess the effect of body shop outsourcing on performance of telecommunication companies in Uganda, to establish the effect of offshore outsourcing on performance of telecommunication companies in Uganda. The independent variable, outsourcing consisted of three dimensions namely, project management outsourcing, body shop outsourcing, offshore outsourcing. The dependent variable performance included service quality, cost efficiency and profitability. Little research and understanding has been dedicated to outsourcing in telecommunication companies. This research focused on the study was reflected in the conceptual framework with hope of filling in the missing gaps. The population size of the study was 120 respondents and sample of 92 respondents was used. The study used a case study research design. Simple random sampling was used in the study and the study employed questionnaires which consisted of both closed end and open end structured questions which were administered to the 120 respondents of which only 92 responses were obtained.Both qualitative and quantitative approaches were used in the study. A statistical package for social science (SPSS) was used in analysing data. Frequency distribution tables and percentages and pie charts were used to represent raw data for interpretation. The findings of the study indicated that there is a strong relationship between project management outsourcing and performance as a firm can execute pans in order to match competitors in there outsourcing endeavours. The study also found out that through body shop outsourcing companies have a sufficient level of expertise in house to control or manage their supplier. The study also confirmed that offshore outsourcing seeks a low positive response. The study recommends that company managers should have a shift in their mind set so as to embrace outsourcing and also manage their contractors and workers so as to provide efficient service delivery and company workers embrace the strategy of outsourcing before its implementation.

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