Factors Influencing Outsourcing Strategies at Professional Membership Based Institutions: a Case of the Kenya Institute of Management

Abstract

Outsourcing is the strategic use of outside resources to perform activities that are usually handled by internal staff and resources. By using a well managed outsourcing agreement, companies can gain a lot of benefits in outsourcing. The purpose of the study was to determine the outsourcing practices and factors that influence outsourcing at KIM. Data was collected through personal interviews structured to cover the outsourcing practices and factors that influence outsourcing strategies at KIM. The objectives of the study were to determine the outsourcing practices and factors that influence outsourcing strategies at KIM. Data was collected using an interview guide, coded and analyzed using content analysis. The research found out that KIM was using outsourcing broadly across many activities, but viewed from the level of each activity the institute outsourced cleaning, security, transport and consultancy more than any other activity. Activities with the least level of outsourcing included human resource and information technology. Among the benefits the institute gained as a result of outsourcing included in order of importance; efficiency in service delivery, increase in customer satisfaction index, good corporate image, improved customer response rate and increased profits. Reduction of costs, quality and focus on the core business were the major factors that influenced various outsourcing strategies at KIM. The study recommends that since KIM is a service delivery industry and the fact the there will be more opportunities for KIM to outsource some of its services as the dynamics of the industry change, there is need to refine its outsourcing strategies and processes in order to gain maximum benefits from outsourcing. The study suggests further research in outsourcing practices among other membership based institutions in Kenya. A replication of this study should be done after some time to find out if there are any changes that have taken place and comparison with the current data be done. A study can also be conducted to access the relationship between performance and outsourcing among membership based institutions.