The effect of outsourcing on the operational performance of telecom firms in Ghana: a case study of Millicom Ghana Limited

Loading...
Thumbnail Image
Date
OCTOBER, 2015
Journal Title
Journal ISSN
Volume Title
Publisher
Abstract
Outsourcing in recent times has become a common business practice in many organizations. The concept has since developed into several models practiced within and across countries. A key reason is usually to save time and money. In recent times, businesses have been confronted with the challenge of reducing their cost of operation and one way of doing this is to consider outsourcing. But the question is whether outsourcing has any effect on firm’s operations and service delivery. To help address the above, this study sought to examine the effects of outsourcing on operational performance of telecom firms in Ghana using Millicom Ghana, operators of Millicom as case study. The study was descriptive, using both primary and secondary sources of data. Out of a population of 445, a sample of 160 employees was used. At the end, the study found that key rationales for Millicom’s outsourcing practices included enhancing effectiveness by focusing strengths, improving operating performance, and obtaining expertise, skills, and technologies that would not otherwise be available. The study also revealed a number of significant effects of outsourcing on the operations of Millicom and telecom companies in general. This includes the fact that when telecom companies outsource, it improves credibility and image through their associating with superior providers. The regression results also show a positive relationship between outsourcing and firm operations. Coefficient of R =.339; the R2 result was 0.115. The result was significant at 0.00. The implication is that if telecom firms outsource non-core functions, they are more likely to record an improvement in operational cost by approximately 32%. It is therefore recommended that telecom companies ensure that quality is not compromised in their attempt to cut down cost through outsourcing.
Description
A Thesis submitted to the Department of Marketing and Corporate Strategy, Kwame Nkrumah University of Science and Technology in Partial fulfillment of the requirements for the degree of Master of Business Administration (Strategic Management And Consulting).
Keywords
Citation