TABLE
OF CONTENTS
Declaration ii
Approval iii
Dedication
iv
Acknowledgements v
Abstract
viii
CHAPTER ONE:
INTRODUCTION
1.1
Background of the Study 1
1.2
Statement of the Problem 3
1.3
Objectives of the Study 3
1.4
Research Questions 3
1.5
Research Hypotheses 4
1.6
Significance of the Study 4
1.7
Scope of the Study 4
1.8
Limitation of the Study 4
1.9
Definition of Terms 5
1.10
Profile of Organizations Under Studied 5
References
CHAPTER TWO: REVIEW OF
RELATED LITERATURE
2.1
Conceptual Framework 13
2.2 Forms of Outsourcing 14
2.3 Processes of Outsourcing 20
2.4 Advantages and Disadvantages of
Outsourcing 22
2.5 Drawbacks of Outsourcing 30
2.6 Outsourcing Principles 32
2.7 Key Requirements for Effective
Outsourcing 33
2.8 Quality of Outsourcing Relationship 35
2.9 Outsourcing Activity and Role of
Performance 37
2.10 Reason to Outsource 38
2.11 Factors
to Consider When Outsourcing 42
2.12 Model for Business
Process Outsourcing (Bpo) 42
2.13 Outsourcing Option 43
2.14 Outsourcing Decision
Making 44
2.15 Decision-Making Characteristics In The
Outsourcing Process 45
2.16 Outsourcing and Employee
Perspective 47
2.17 Prescriptive
Models of Outsourcing 48
2.18 Outsourcing
Governance: Criticality and Scope 50
2.19 Development of the Outsourcing Concept 55
2.20 Outsourcing as a Strategic Consideration 60
2.21 Types of Outsourcing Relationship 61
2.22
Theoretical Framework 67
2.23
Empirical Review 70
2.24
Summary of the Reviewed Literature 71
References
CHAPTER THREE:
METHODOLOGY
3.1
Introduction 79
3.2
Research Design 79
3.3
Sources of Data 79
3.4
Population of the Study 80
3.5
Sample Size Determination and
Sampling Technique 80
3.6
Description of the Research
Instruments 82
3.7 Data
Analysis Techniques 82
3.8 Validity of the research Instrument 83
3.9 Reliability of the Research Instrument 83
CHAPTER FOUR: DATA
PRESENTATION, ANALYSIS AND INTERPRETATION
CHAPTER FIVE: SUMMARY
OF FINDINGS, CONCLUSIONS AND RECOMMENDATIONS
5.1 Summary of Findings 95
5.2
Conclusion 95
5.3
Recommendations 95
5.4 Contribution of Knowledge 96
5.5 Suggestions for Further Studies 97
Bibliography
Appendix
LIST
OF TABLES
Table 4.1: Questionnaire Distribution 86
Table
4.2: Sex Distribution of the Respondents 86
Table
4.3: Age Distribution of the
Respondents 87
Table
4.4: Marital Status of the
Respondents 87
Table
4.5: Educational Qualification of
the Respondents 88
Table
4.6: What nature of relationship
exists between personnel
outsourcing
and organizational competitiveness? 88
Table 4.7: Descriptive Statistics 89
Table 4.8 Correlations 89
Table 4.9: To what extent do Nigerian commercial banks outsource personnel services? 90
Table 4.10 Chi-Square Tests from the frequency cross
tabulation 90
Table 4.11: What are the areas in which Nigerian Commercial banks
outsource their personnel services? 91
Table 4:12 Chi-Square Tests from the frequency cross
tabulation 90
Table
4.13: What are the benefits from
Outsourcing personnel services? 92
Table 4:13 Chi-Square
Tests computed from the frequency cross tabulation 93
Table 4:14 Chi-Square Tests computed
from the frequency cross tabulation 93
ABTSRACT
The study sought to determine the nature of the relationship between personnel outsourcing and organizational competitiveness, ascertain the extent to which commercial banks outsource their personnel services, identify the areas in which commercial banks outsource personnel services, determine the benefits from outsourcing personnel services. The study had a population size of 613, out of which a sample size of 242 was realized using Taro Yamane’s Formula at 5% error tolerance and 95% level of confidence. Instruments used for data collection were questionnaire and interview. A total number of 242 copies of the questionnaire were distributed while 191 copies were returned. The Survey research design was adopted for the study. The four hypotheses were tested using Pearson product moment correlation coefficient and chi- square statistical tools. The findings indicated that there is a significant relationship between personnel outsourcing and organizational competitiveness. Nigerian commercial banks always outsource their personnel services. Recruitment of human resource, cleaning and security services are areas in which Nigerian commercial banks outsource personnel services. Reduced cost, improved quality and time-related advantages are benefits attributed to personnel outsourcing. The study recommended that every organization that operates in a highly competitive environment should embark on personnel outsourcing.
CHAPTER
ONE
INTRODUCTION
1.1 BACKGROUND OF THE STUDY
With competition becoming stiffer, and
the Nigerian business environment increasingly becoming hostile amidst several
regulations and government interference nowadays, organizations especially
banks are continuously being forced to find ways to improve their business
performance and to obtain competitive advantage in all possible means. To this
end, many of them have looked beyond the traditional boundaries of their firms
to obtain performance improvement. They have turned to personnel outsourcing
with an increasing attempt to enhance their competitiveness, increase their
profitability and refocus on their core business (Hill, Ireland and Hoskisson,
2007).
Personnel outsourcing can potentially
reduce costs, which is one crucial basis for attaining competitive advantage
over competitors as well as increasing profitability. Organizations may give
away their ‘Crown of Jewels’ if they are not careful when doing the outsourcing
.For example, strategic reputation loss, compliance and operational risks
arising from failure of a service provider in providing the services, breaches
in security, or inability to comply with legal and regulatory requirements of
the company, etc(Kremic, Tukel and Rom, 2006).
Personnel outsourcing can only be a
panacea for organizational competitiveness if organizations possess the
resources and capabilities required to achieve competitive superiority in all
primary and support activities (Gillett, 2004).
Linder, Jarvenpaa, and Davenport (2003)
state that, few companies can afford to develop internally all the technologies
and the competences that might lead to or enhance competitive advantage. And by
nurturing a smaller number of capabilities, a firm can increase the probability
of developing a competitive advantage because it would not become
overextended-which is protective against the great risk of loss in outsourcing.
Meanwhile, by outsourcing the personnel, it makes the firm concentrate on those
areas in which it can create value (Click and Duening, 2005).
Paraskevas
(2001) stresses that personnel outsourcing as an alternative
approach:“Outsourcing might be a better alternative when it is believed that
certain support functions can be completed faster, cheaper, or better by an
outside organization” Nowadays along with traditional outsourcing of internal
functions in category of support, advice, audit, and evaluation such as IT,
training, accounting and internal auditing, organisation outsource other service encounters by
eliminating internal suppliers like the purchasing department that replace with
e-procurement, food production and housekeeping (Paraskevas, 2001).
One
of the effective ways to handle this issue is outsourcing the training or at
least outsourcing the appraisal of training. Outsourcing has been viewed as a
form of predetermined external provision with another enterprise for the
delivery of goods and/or services that would
