Implementation Challenges of the Business Process Outsourcing Strategy in the Ministry of Transport in Kenya

Abstract

Business process outsourcing refers to an Organization that contract with another company to provide services that might otherwise be performed by in-house employees. Many large Organizations now outsource jobs such as call center services, Cleaning, Security, e-mail services, and payroll. BPO involves business process management and outsourcing. Business process management utilizes technology aimed at revamping the process, trimming down unnecessary steps, and eliminating redundancies. The objective of the study was to establish implementation challenges of BPO strategy at the Ministry of Transport in Kenya. The researcher adopted a descriptive case design. The researcher used both primary and secondary data. Primary data was collected using an interview guide while the secondary data was mainly collected from periodicals, publications, economic reviews, annual company accounts and commercial sources. The target population comprised of the Senior Deputy Secretary, Senior Assistant Director SCM, Office Superintendent, Chief Finance Officer, Principal Accounts Control and ICT Assistant Director. Content analysis was used to analyze the data that is of qualitative nature. Ministry of Transport has adopted Strategic Plan 2008-2012 with an aim of reducing costs, improve operations, overcome lack of internal capabilities, keep up with competitors, gain competitive advantage, improve capabilities and improve customer service. The Kenyan public sectors especially the Ministry of Transport and other Outsourcing Organization should use the study to benefit the organization by formulating strategies to counter the challenges of BPO strategy and enhance successful implementation of BPO. The government and policy makers should get insight from the study in formulating policies regarding regulatory requirements of the Kenyan outsourcing firms that will promote successful implementation of BPO in the organization. The academicians should use that the study as a basis upon which further studies on business process of outsourcing could be researched. The findings should contribute to professional extension of existing knowledge in business processing outsourcing by providing literature on challenges of BPO implementation, it would also help the Government of Kenya to institute policies to streamline the outsourcing process in the Public and Private sector so as to avoid the aforementioned challenges encountered during the Outsourcing process.