ABSTRACT The study was conducted to establish the effect of procurement outsourcing on serviCe ddinory in uganda. The study had three specific ol:Jjectives to achieve: to determine the extent to which procurement outsourcing in Mukono, uganda, to determine the effect of procurement outsourcing on service delivery in Mukono, Uganda and to determine the challenges in procurement outsourcing in Mukono, uganda. The collected data was edited and cleaned for completeness and consistency in preparation for coding. Once coded, the data was keyed into the Statistical Package for Social Sciences (SPSS) for analysis. Descriptive statistics such as means and standard deviations were used to analyze the data. Regression analysis was used to test the relationship between the variables under study in relation to the objectives of the study. The study concluded that the manufacturing firms outsource procurement practices to a great extent and this affects service delivery in Uganda positively b) leading to improved supply chain performance in ways such as increased productivity. minimized costs, maximized profits, increased operational efficiency and increased customer satisfaction. Challenges were faced to a moderate extent. The managements of manufacturing firms should take legal precautions against the third parties oJTering the services or products being outsourced to prevent information leaks or a bleach of company privacy and that the management of the manufacturing firms should carry out a benchmarking activity against the best players in the market as a way of improving their procurement outsourcing practices. This would enable them to achieve undisputed perJonnance oftheir supply chains.
