Factors influencing outsourcing practices in non-governmental organizations in kenya: a case of International Drug Rehabilitation Centre

Abstract

This study was on the Factors Influencing Outsourcing Practices in NGOs in Kenya: A Case of International Drug Rehabilitation Centre (IDREC). Of late, NGOs have adopted outsourcing as a strategy to reduce internal financial wastage, cutting costs and being responsive to donor requirements, enabling the NGOs concentrate on the mission for which they were set. Outsourcing entails shifting of traditional corporate activities to parties outside of the firm with the aim of gaining access to world class capabilities. Under the relentless pressure to compete, companies globally are striving to increase the quality of their goods and services and at the same time reduce costs. This study focused on five major objectives. First it tried to identify the factors influencing outsourcing practices in the NGO industry. Secondly, it sought to establish the strategies adopted to cope with the challenges of outsourcing and thirdly, it sought to determine the impact of outsourcing on the level of customer service. This study was being conducted through a survey to establish the responses. Data was collected from primary sources through personal interviews and questionnaires from respondents who are employees at International Drug Rehabilitation Centre. The data obtained was then analysed and interpreted using content analysis technique. The study identified a number challenges that International Drug Rehabilitation Centre has faced as a result of outsourcing its services, including poor communication, loss of control, quality of service, lack of performance measures, and skill level of the 3PL personnel. The research established that International Drug Rehabilitation Centre has come up with a number of strategies to deal with the challenges. This included implementing key performance measures, improving communication channels and modes, regular operational meetings and intensive training of the 3PL employees. The research results also indicated that outsourcing had significantly led to improvement in customer service. The study recommends that International Drug Rehabilitation Centre needs to improve on its relationship management to make the organization enjoy the full benefits of outsourcing. It also recommends benchmarking with the industry, engaging a dedicated manager to manage the third party and closely monitors the Key Performance Indicators (KPIs). This study assessed the influence of resource utilization, quality of service delivery, stakeholder satisfaction, strategies adopted, and corporate efficiency on outsourcing decisions at International Drug Rehabilitation Centre and found out that they have a significant influence on its operations. There is need therefore for regular and honest reviews, challenging the 3PL to be the new leader in innovation and greatercapacity building between the two partners to work together towards the same goal.