Outsourcing and Customer Satisfaction in Kenya Power Nairobi Region

Abstract

The purpose of this study was to examine the relationship between outsourcing and customer satisfaction in the organizations. Specifically the study sought to determine the relationship between contracted services, outsourcing procedures and contracting risks and customer satisfaction. The study was carried out in Kenya Power Company surveying on the contracted services by the various divisions in Nairobi County. The divisions were central, Dagoretti, Embakasi, Kasarani, Kibera, Makadara, Pumwani and Westlands. From each the divisions the study targeted the procurement department with the staffs working in these departments being the main respondents. The study sample was selected from the targeted population totaling to 94 respondents picked using proportionate sampling method. The study required primary data which was collected by the use of questionnaires and interview schedules. After data collection the data was coded into the computer using various softwares such as excel and SPSS which aided in the analysis. The data was then presented in form of tables, figures and prose for interpretation and interpreted based on the study objectives. The major findings were that outsourcing leads to effectives in service delivery, promotes efficiency, improve organizational performance and enables effective allocation of resources in addressing customer needs in the organization. The contracting procedures in place compels contractors to adequately perform their duties with the customer in their minds, they ensure that all contractors are given all the necessary information before they begin their contracts and that the organizational goal of ensuring that the customers are given the best services is achieved through the laid down procedures. The risks associated with outsourcing are cases of inexperienced bidders winning contracts and not being able to deliver in a bid to cut their costs and contractors some times engage low quality staff in delivering the service hence compromising on customer satisfaction achievement. Therefore the study recommends that the management should keenly monitor the sources of their contractors’ products/services so as to have an overall picture about the service delivery process. This will ensure that the vendors do not use low quality materials/workmanship which might lead to low quality services to the provided to the customers.