TABLE OF CONTENTS
DECLARATION
APPROVAL
ACKNOWLEDGEMENT iv
TABLE OF CONTENTS v
ABSTRACT
CHAPTERONE 9
1.0 Introduction 9
1.lBackground 9
1.2 Problem statement 10
1.3 General objective of the study 11
1.4 Research questions 11
1.5 Scope of the study 11
1,6 Significance of the study 12
1.7 Conceptual framework 12
CHAPTER TWO: LITERATURE REVIEW 13
2.0 Introduction 13
2.1 The concept of outsourcing 13
2.2 Cost reductions 15
2.3 Key factors necessary for outsourcing 16
2.3.lCompetence 16
2.3.2 Management support 16
V
2.4 Drivers of outsourcing .17
2.4.1 Quality actual capacity 17
2.4.2 Finance 17
2.4.3 Core business 17
2,4.4 Benefits of outsourcing 17
2.6.1 Cost saving 18
2.6.2 Specialization 18
2.6.3 Access to innovation 18
2.6 Challenges of outsourcing 18
CHAPTER THREE: METHODOLOGY 20
3.0 Introduction 20
3.1 Research Design 20
3.2 Data Collection Methods 20
3.3 Data processing and analysis 20
3.4 Limitations ofthe study 21
CHAPTER FOUR: PRESENTATION, INTERPRETATION AND DISCUSSION OF THE
FINDINGS 22
4.0 Introduction 22
4.1 Relevance of outsourcing 22
4.2 Nature of organizational performance 23
4.3 Whether outsourcing improves organizational performance 24
4.4 Conclusion 25
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CHAPTER FIVE: SUMMARY, CONCLUSION AND RECOMMENDATION .26
5.0 Introduction 26
5.1 Summary 26
5.2 Conclusions 26
5.3 Recommendations 27
5.4 Areas for further research 28
REFERENCES 29
APPENDIX I : RESEARCH QUESTIONNAIRE 31
APPENDIX II: INTRODUCTORY LETTER~~, . .
ABSTRACT The study assesses the impact of outsourcing and service delivery on organisational performance and it is done in Rwenzori Bottling Company Limited. It focuses on the benefits and challenges companies face in outsourcing their non-core activities. The study uses the objective of assessing the impact of outsourcing on organisational performance to get data presented in the findings. These show that companies benefit from outsourcing though they face some challenges in their bid to outsource their non-core activities to outside providers. Organisations always prefer letting specialists in different fields accomplish certain tasks in their companies and this means that organisations can benefit from outsourcing as shown in the Literature Review The Data was collected and then analysed to fit the purpose of the study though with several limitations ranging from financial constraints to time constraints. The findings show that companies outsource to access special expertise, speed up delivery of services, reduce costs and get enough time to concentrate on their core activities. In the long run companies have benefited from outsourcing in several ways like reduction in costs and company staff getting enough time to concentrate on their core activities to promote the company’s competitiveness in the market. In conclusion, companies should outsource some of their services so as to reduce costs and concentrate on core activities. This therefore shows how important outsourcing is and other companies should adopt it just like Rwenzori Bottling Company has done and get good quality services from experts as well as more time for core activities.
