| dc.description.abstract | Implementation of outsourcing strategy is currently viewed as a globally accepted best
practice which has brought dramatic change of fortunes in many organizations. Smart
organizations focus on core competences that provide high value, maximize return on
internal resources, treat many services as strategic enablers and also have an internal
customer/supplier orientation. Through outsourcing organizations can improve on
customer service, cut down costs, minimize risks, increase competitive advantage and
improve shareholders returns. As a result both outsourcing organizations as well as
service providers require relevant information on existing and emerging practices and
trends so as to make optimal operational and management decisions. The
implementation of outsourcing strategy has challenges and risks involved and in order to
get the in sight of these challenges and risks, a study was carried out at the Kenya Post
Office Savings Bank who have implemented the outsourcing strategy in most of their
non-core services. The purpose of study was to investigate how Postbank has
implemented the outsourcing strategy which was found to be almost complete and the
challenges they have faced which include switching costs, degree of control, human and
technology interface, threat to security and confidentiality, resistance to change from
employees, lack of support from top management lack of resources and legal issues of
outsourcing. The study adopted a case study design and utilized both primary and
secondary data. The same was guided by a pre-planned interview guide. From the
study, it was clear that the implementation of outsourcing strategy in Postbank has gone
on well despite challenges faced but at the end, it will benefit the organization. All the
employees of the bank understand the outsourcing strategy and are aware that is started
three years ago. They are aware that services line security, messenger services, cleaning,
tea provision, transport and medical services have been outsourced. In conclusion the
challenges can be solved by continuous training, provision of recourses and support from
top management will help is solving the problems encountered thus succeeding in the
outsourcing strategy implementation. It is recommended that the bank involves all
stakeholders to conclude the implementation of the outsourcing strategy which is almost
complete. There is need for further study in implementation of outsourcing in banks and
also in other industries since they all operate in the same competitive environment. | en |
