Factors Affecting the Growth of Business Process Outsourcing Firms in Kenya

Abstract

The purpose of this study was to examine factors affecting the growth of business process outsourcing firms strategies in kenya. The rapid growth of outsourcing has transformed the way public entities are managing their operations in providing services to the Kenyan citizen. This has brought considerable benefits as well as challenges. Outsourcing has been considered as one of the methods that public institutions utilize to strengthen their core competencies to ensure cost-effective management of resources. Outsourcing involves reviewing of functions and processes within an organization with a view of restructuring to enable an organization to focus on its key competencies. The methodology used in this study was a cross sectional survey. The population in this study included all the Business Process Outsourcing firms in Nairobi. There are 50 registered companies operational in Nairobi area. Data collection involved the collection of raw data from the target population or the study units. In order to come up with effective data, a certain procedure was followed to ensure that all the relevant data was received. Both primary and secondary data were collected. Questionnaires and interviews were used to collect primary data, while secondary data was collected from document or records review. quantitative data was analyzed using descriptive statistics including percentages, frequencies, means and standard deviation. Qualitative data was analyzed by the use of content data analysis, where the factors affecting the growth of Business Process Outsourcing firms were grouped into related themes. The study found out that on the issue of business outsourcing adoption of new technology was successfully implemented. In addition the study found out that the need that affected business process outsourcing was, before committing to outsourcing firms, companies need strong evidence that tangible benefits will be achieved. The study also found that the Kenyan government’s strategic plan “vision 2030” singling out a Business Process Outsourcing as one of the six pillars to drive the country to a medium developed economy facilitates growth of the Business Process Outsourcing industry affect the legal and regulatory framework on business process outsourcing. The findings imply that business process outsourcing firms should invest more in technology as well as effective adequate training on the relevant stakeholders of the organization who are the pillars of the organization as well as adhere to the legal and regulation framework to positively influence growth of the businesses.