Challenges of outsourcing strategy by mobile phone operators in Kenya

Abstract

This survey sought to establish the challenges of outsourcing strategy by mobile phone operators in Kenya. The other objective was to determine the strategies employed in outsourcing strategy. The research study is carried out on the mobile phone operators in Kenya which include Telkom Kenya Limited, Safaricom Limited, Zain Kenya Limited, Essar Telecom Kenya Limited, Flashcom Limited and Popote Wireless. The research study is carried out to identify the challenges these operators face in outsourcing their services. The research project was conducted by collecting primary data using an interview guide to collect in-depth data from the members of the management team across all the departments. The report contains in-depth analysis and interpretation of the data identifying the challenges faced by these mobile telecommunication operators. The findings reveal that despite the many benefits of outsourcing, there are as well challenges. Outsourcing is an expensive business strategy. The cost of hiring professionals is quit high and training staff to get more familiar with the outsourced service. The time delay in service delivery poses a challenge in meeting customer needs. Government policies on outsourcing, cultural and legal barriers all work against the success of a very great strategy in business.The recommendation is provided for further research works to be carried out. Cost is the greatest challenge in outsourcing. If the cost of outsourcing is made cheaper the outsourcing strategy will make businesses more profitable and increase on their market share. With the recently laid fibre optic cable in Kenya, it is expected that communication will be much cheaper, reducing the cost of doing business. An area for further study hence is the impact of Fibre Optic cable on Outsourcing strategy. Further, a study can be carried out on the Telecommunication industry as opposed to the Mobile phone and focus on the benefits and challenges of outsourcing