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 previously have been offered in-house (Elfing and Baven, 1994program and satisfaction survey (Paraskevas, 2001).
Personal outsourcing is able to save money for organisations and is able to perform a business function better than organisations’ employees by economic of scale, process expertise, access to capital, and access to expensive technology (Zhu et al., 2001).
Lackow (1999) opines that the main reasons of outsourcing as cost saving, improvement of service, the ability on focus on core business and the ability to access outside expertise. “Given that outsourcing will be a natural outgrowth of globalization and fast-changing technology for many companies in the world, those who anticipate and manage these changes strategically, the gains can be enormous”.
The effectiveness of outsourcing application can be reached when the need of outsourcing is correctly determined, core competencies are identified, cost benefit analysis on advantages and disadvantages of outsourcing is conducted, information regarding outsourcing function is disseminated, bank basic outsourcing needs in long and short terms are identified, data collection process is implemented, proposals from available vendors (those companies that are able to contract out to and carried out the function) are collected and evaluated, a most suitable vendor is identified, a contract is made, and a control process is implemented (Bolatet al., 2009).
Similarly Domberger (1998) states that organizations should assess the range of its internal activities by considering its objectives additional to the intention to apply cost saving. Outsourcing should be employed to satisfy organisational strategic objectives such as strategic improvement in area of cost saving and enhancement of efficiency, or strategic business impact in area of improving contribution to companies’ performance, or strategic commercial exploitation in area of leveraging technology related assets .
| Project details | Contents |
|---|---|
| Number of Pages | 109 pages |
| Chapter one | Introduction |
| Chapter two | Literature review |
| Chapter three | methodology |
| Chapter four | Data analysis |
| Chapter five | Summary,discussion & recommendations |
| Reference | Reference |
| Questionnaire | Questionnaire |
| Appendix | Appendix |
| Chapter summary | 1 to 5 chapters |
| Available document | PDF and MS-word format |
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