TABLE OF CONTENTS
DECLARATION ........................................................................................ i
APPROVAL ............................................................................................. .ii
DEDICATION AND ACKNOWLEDGEMENT .............................................. .iii
ABSTRACT ............................................................................................... iv
LIST OF TABLES AND FIGURES .............................................................. v
CHAPTER ONE .............................................................................................................. 1
INTRODUCTION ....................................................................................................... 1
1.1 Back ground .................................................................................................... I
1.2 Problem Statement ........................................................................................ 3
1.3 Objectives of the study ................................................................................ 3
1.4 Research Question ........................................................................................ 3
1.5 Conceptual Framework ............................................................................... 4
CHAPTER TWO ............................................................................................................. 5
LITERATURE REVIEW .......................................................................................... 5
2.1 Introduction ..................................................................................................... 5
2.2 Definitions ........................................................................................................ 5
2.3 Forms of outsourcing ................................................................................... 6
2.3.1 Offshore outsourcing ................................................................................ 6
2.3.2 On shore Outsourcing .............................................................................. 6
2.4 Process of Outsourcing ................................................................................ 7
2.4.1 Request for proposal (RFP) ..................................................................... 7
2 .4. 2 Examining the service provider. ............................................................ 7
2.4.3 Choosing a partner .................................................................................... 8
2.4.4 Finalizing Contracts .................................................................................. 8
2.4.5 Measuring Performance ........................................................................... 9
2.4.6 Contract end ................................................................................................ 9
2.5 Factors to consider before outsourcing .................................................. 9
2.5.1 Identification of non core activities ...................................................... 9
2.5.2 Seeking Profile .......................................................................................... I 0
2.5.3 Clearance of financial and performance conditions .................... I 0
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2.5.4 Cost determination .................................................................................. I 0
2.5.5 Time Scale .................................................................................................. II
2.5.6 Delivery methods ..................................................................................... II
2.6 Cost Minimization ....................................................................................... II
2.6.0 Definition .................................................................................................... II
2.6.1 Methods of cost minimization in an organisation ......................... 12
2.6.2. Reducing Customer Service level.. .................................................... 12
2.7 The Relationship Between Outsourcing And Cost Minimisation. 14
CHAPTER THREE ...................................................................................................... 17
METHODOLOGY ..................................................................................................... 17
3.1 Introduction ................................................................................................... 17
3.2 Research Design .......................................................................................... 17
3.3 Study population and Sample size ....................................................... 17
3.3.1 Sample Size Selection ............................................................................ 18
3.4 Sampling Design and procedure ............................................................ 18
3.5 Data type ........................................................................................................ 19
3.5.1 Primary data ............................................................................................. 19
3.6.2 Secondary Source: ................................................................................... 19
3.6.3 Questionnaires: ........................................................................................ 19
3.6.4 Interview Guide: ....................................................................................... 20
3. 7 Measurement of Variables ........................................................................ 20
3.8 Data Analysis and Presentation ........................................................... 20
3. 9 Limitation the study ................................................................................... 20
CHAPTER FOUR .................................................................................... 24
DISCUSSION, PRESENTATION AND INTERPRETATION OF TI-lE FINDINGS 24
4. 0 In traduction ................................................................................................... 24
4.1 Demographic Information ......................................................................... 24
4.2 PRESENTATION OF THE FINDINGS ON OUT SOURCING ............ 28
4.2: 1 Discussion and interpretation of the findings on out sourcing28
4.3 Presentation Of The Findings On Cost Minimisation ...................... 29
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4.4 Presentation Of The Findings On Out Sourcing And Cost Minimization
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CHAPTER FIVE ........................................................................................................ 34
SUMMERY OF FINDINGS, CONCLUSSION AND RECOMMENDATIONS
................................................................................................... 34
5.1 Introductions ................................................................................................. 34
5.2 Summary of the findings ....................................................................... 34
5.3 Conclusion ..................................................................................................... 34
5.4 Managerial and Policy Recommendations ........................................... 35
5.4 Areas for further research ........................................................................ 36
References ................................................................................. 37
Questionnaire ........................................................................... 39
ABSTRACT 'he study is sought to investigate the effects of outsourcing on cost ninimization. The research was guided by the following research objectives. To nvestigate the various forms of outsourcing in the Ministry of Finance and ~conomic Development, to investigate and identify the various costs faced by he Ministry of Finance and Economic Development and m project mplementation, to establish the relationship between outsourcing and cost ninimization. ~he study findings indicate that the Ministry of Finance, Planning and konomic Development uses outsourcing in project implementation as sho·;un .,,-~ ~:. )IJ )y the majority of the respondents. The organization though does not suGer tdverse disadvantages of outsourcing as more than 80% of the respondents ndicated that the Ministry plans to use outsourcing in cost minimization and ess than 20% were not sure. crowever the study indicates that outsourcing faces a lot of challenges during Jroject implementation and the ministry needs extra efforts to counter these ~ffects. The study therefore suggested a number of remedies that can be u,~('d :o minimize costs through outsourcing.
