Benefits and challenges of outsourcing human resource activities: a survey of commercial banks in Nairobi, Kenya

Abstract

As many organization turns to Outsourcing some of their Human resource activities it is important to establish the benefits and challenges of the practice. This study was done to establish the benefits and challenges of Human Resource outsourcing in commercial Banks in Nairobi Kenya. Data was collected in Nairobi in August 2006. A sample of 30 banks out of the 43 commercial banks was selected. However only 17 responded. The researcher used descriptive statistics to analyse the data and presented the findings by use of tables. In this research it was establishes that over 50% of banks surveyed have benefited from Human resource outsourcing and each of the ones that have benefited from HR outsourcing has also faced challenges in the process, however the benefits outweigh the challenges and outsourcing of Human Resource activities is recommended.