Subcontractor selection in telecommunications industry: A case study of Nokia Siemens networks in Kenya

Abstract

The overall purpose of the study was to evaluate subcontractor selection in telecommunications industry with three specific objectives. The first specific objective of the study was to determine factors considered during the selection process in NSN Kenya. The second objective was to determine methods used in the selection of the subcontractor by NSN Kenya and finally, the third objective was to establish the challenges faced by NSN Kenya during the subcontractor selection process. Primary data was collected using structured questionnaires. The results of the study showed that the factors considered during subcontractor selection are subcontractor’s performance, its ability to deliver, the contractual terms and its reliability and delivery quality during the selection process. In the method used found out that there is no specific method used by NSN Kenya. This study recommended that the telecommunications industry adopts a specific method among the recommended ones for proper benchmarking. The study found out that NSN Kenya faced challenges in obtaining subcontractor internal knowledge, delivery assurance and knowledge on subcontractor responsiveness. It is recommended in this study that telecoms industry address these challenges. The methods used by NSN Kenya as found in the study were AHP and CBA. The limitation of this study is that it focused on one telecommunication vendor in Kenya with a population of fifty respondents. This study recommends a similar study to be done in other existing vendors within Kenya and other countries with a larger population.