Outsourcing in Cooperatives in Tanzania: Assessing the Contribution of Outsourcing on Organisational Performance

Abstract

This study was designed to explore the contribution of outsourcing on organisational performance  and why cooperatives are undertaking outsourcing projects .Also; this article examines the relationships between outsourcing strategies and organizational performance. The results show that cooperative organisations were unfamiliar with outsourcing and outsourcing strategies.

The study also found that cooperative organisation undertook outsourced activities in order to reduce cost, improve delivery and reliability of services as well as to make use of resources not available in the organisation. In addition, Cooperatives outsourced services in order to reduce manpower need in the organisation, focus on core organisational competencies as well as making organisational financial resources for profitable core activities.

Keywords: Outsourcing, cooperatives and organisational performance