| dc.description.abstract | Outsourcing has become an important business strategy because it enables businesses to
reduce and control operating costs, to improve company focus, to gain access to world class
capability and to free internal resources for other purposes. Outsourcing has been used as part
of the new public management agenda with the aim of increasing efficiency and decreasing
costs. Consequently, its effects on productivity remains a factor to be considered by
managment in decision making. The purpose of this study was to establish the effect of
outsourcing on employee productivity in selected parastatals. The research objectives were to
establish the forms of outsourcing used in selected parastatals in Kenya, to find out the effect
of outsourcing on operational cost, to determine the effect of outsourcing on employee
productivity and to establish the effect of outsourcing on innovation in the selected
parastatals. A descriptive research design was adopted in this study. Simple random sampling
was used to select questionnaire respondents while purposive sampling was used to select
interview respondents. Quantitative data resulting from the questionnaire were analysized
using Statistical Package for Social Sciences (SPSS) inthe selection of respondents and
presented in table and figures while qualitative data was analyzed using themes and presented
in form of narratives. From the findings, this study found out that contracting out was the
most popular form of outsourcing used in parastatals. In addition, security, cleaning, refuse
disposal, and training were the main outsourced services in parastals. Further, outsourcing
had effects on operational costs, innovatio nand producitivity. Its efffects on operational cost
was through cost saving, reducing operational cost and improved resources management
which was significant while its effects on innovation and productivity were found to be
insignificant. From the findings, this study recommends the assessment of outsourcing modes
and promoting the adoption of other forms of outsourcing in parastatals. Coming up with
employee motivation techniques and proper communication on outsourced services were also
recommended. | en_US |
