Outsourcing Strategy and Performance of Kenya Institute of Management

Abstract

Outsourcing is contracting with another company or person to do a handle particular functions or activities of an organization. Almost every organization outsources its activities to some extent. Typically, the function being outsourced is considered non-core to the business. The study focused on outsourcing and organizational performance Kenya Institute of Management and the purpose of the study was to assess the impact of outsourcing on organizational performance, based on the following objectives; to establish the importance of outsourcing in the organization, to investigate factors affecting performance of the organization and to establish challenges associated with outsourcing.In carrying out the study, the researcher used both descriptive and qualitative research designs. A total of 8 respondents were sampled and simple random sampling method was employed and interview guides were used to gather views from the respondents. The data was then analyzed using content analysis. The study revealed that outsourcing is a live issue that is of particular importance to decision makers. It also revealed that outsourcing is quickly moving from a cost saving measure to a key part of corporate strategy. Outsourcing begins with understanding a business’s core identity. By understanding what gives a company competitive advantage, it is then able to effectively analyze which activities it is doing that can be done by a third party thereby giving room to focus on its core competencies. The findings of the study reveal that outsourcing certain activities has generally improved the performance of KIM. However, the institution needs to take measures to mitigate the risks that are involved in outsourcing to guard themselves against risks of atrophy, poor quality services.