Outsourcing and Organizational Performance Among Public Univeresities in Kenya

Abstract

This project reveals that there has been a significant increase in most of the public universities in Kenya outsourcing non - core services in an attempt to enhance competitiveness. This is because most universities would rather concentrate on their core ser vices which is teaching and because there are many companies that offer these non - core services such as cleaning, security, catering and IT services. These companies have professionally trained employees who can perform these tasks better. Outsourcing is w hen a company contracts an outside supplier for services or other business processes rather than employing staff to do these services in - house. It can also be defined as a process whereby an organization discontinues internal production (for example the pr oduction of goods or services) and replace these existing activities and/or factors of production (for example resources) with capabilities provided by intermediate markets. Organizational performance is reviewed in the contexts that frame it as a depend ent variable with specific emphasis on how it is measured. An organization’s performance is made visible by the activities it conducts to achieve its mission. Outputs and their effects are the most observable aspects of an organization’s performance . The r eview of the measurement of performance highlights the effectiveness of outsourcing. By synthesizing the literature, the foundations are laid for the improved measurement of performance. We conclude with a call for research that examines how an institution ’s size, business strategy and transaction cost influence the decision to outsource functions in the Universities is recommended. The study also recommends that comparable studies be conducted in the other industries with a view of establishing whether the same dynamics of outsourcing hold related effects in those industries