An Evaluation of Outsourcing Process in a Nigerian University: Benefits and Challenges

Abstract

This study examined the outsourcing procedures in a Nigerian University as well as the benefits and challenges involved. Data were derived from primary sources through the administration of questionnaires on 52 purposively selected university administrative staff (20) from the departments responsible for the outsourcing process as well as (32) from the companies that provide the outsourced services. In depth interviews were conducted with 8 purposively selected university administrative staff involved in the outsourcing process. The retrieved questionnaires were analyzed using descriptive statistics in the form of frequencies, while the interviews were reported using the ZY index table. The results revealed that strategizing on the services to be outsourced and weighing the outsourcing options before choosing and screening the vendors were the major steps embarked upon in the outsourcing procedure. The reasons for outsourcing included the quest to reduce and control cost as well as the need to improve the quality of services delivered. The results further revealed that the process of outsourcing improved the quality of services provided (75%), reduced cost (76.9%), increased efficiency and enabled the university to focus on more core activities (71.1%). The major challenges identified in outsourcing included the insecurity which it creates among university staff (96.1%), and poor motivation and competence of the outsourced staff (84.6%). The study concluded that the university management should carefully plan and evaluate the outsourcing process to ensure its success in cutting cost and in providing efficient service in line with the university goals.

Keywords: - Outsourcing, benefits, challenges, Nigeria, University.