Influence of manpower outsourcing on electricity supply to customers: A case of Kenya Power and Lighting company, Eldoret West Sub county, Kenya

Abstract

Companies have always sought ways to gain quality service delivery as an improvement of past poor services; one avenue that firms have pursued to improve their service quality position in this new business environment has been to increase the role of outsourcing in their operations, which has been found to provide a competitive advantage and heightened performance to these firms. However, companies industries under the context of increasing use of outsourcing arrangements, as well as the unfamiliar complexity, are unaware of how to effectively utilize this strategy to improve their services. The study therefore purposed to establish the influence of cost reduction on electricity supply to customers; determine the influence of employee competence on electricity supply to customers; determine the influence of lead time on electricity supply to customers; and determine the influence of quality of supply on electricity supply to customers in Eldoret West Sub County. This study employed the Resource-Based View theory and employed descriptive survey research design to target the 120 sub-contractors at Eldoret West Sub County. Simple random sampling was used to get 60 respondents, while purposive sampling was used on KPLC managers and customers. Questionnaires were used to collect data. To test the reliability of the instruments test retest method was used while validity of the instruments was measured by two experts at Nairobi University reviewing the instruments. Data was analyzed using descriptive, correlation and regression analysis then presented in tables. The findings of the study were: Knowledge and skills (β=.393, t=5.968, p<0.000), cost reduction(β=.193, t=2.593, p<0.004), lead-time, (β=.324, t=4.383, p<0.000), and quality of supply, (β=.352, t=5.129, p<0.000), had a significant influence on connection of electricity to customers in Eldoret West sub county, Kenya. The study therefore recommends: KPLC should employ strategic and well thought out outsourcing to further reduce operating and overhead costs for further firm growth and effective connection of electricity to customers. Further, KPLC and the contractors should offer better terms of service and proper training to help improve employee competence and reduce costs of outsourcing its HR functions for connection of electricity to customers. They should carefully consider the issue of shortened lead-time to ensure that the customers are getting the services on time. KPLC and the contractors should invest in quality connection of electricity tools to give customers a return on their money with quality supply services.