Effect of Outsourcing on the Performance of Selected Quoted Deposit Money Banks in Enugu State

Abstract

The aim of the study is to assess effect of outsourcing on the performance of selected quoted deposit money banks in Enugu State with regards to influence of loyalty of outsourced staff affect organizational productivity and the effect of job insecurity on organizational growth. Descriptive survey design was adopted in the study among 271 staff of selected money deposit banks in Enugu. Questionnaire instruction was used for data collection. The study hypotheses were tested using linear regression. The result of the study revealed that dual loyalty of outsourced staff negatively affects organizational productivity of selected deposit money banks in Enugu state, Nigeria (t = 16.432; p = .000 < 0.05) and job insecurity significantly affects organizational growth of selected deposit money banks in Enugu State, Nigeria (t = 1.143; p =. 007< 0.05). Based on the findings of the study, it was concluded that outsourcing of human resources as a competitive strategy adopted by the deposit money banks in Enugu state, Nigeria, brought a solution to global financial crises and Enugu state in particular for the survival of the banking industries. The study recommended that Banks should outsource only their activities on the periphery to enable employees’ focus on what are their core-competencies and that companies that outsource should continue to monitor the contractor’s activities and establish constant communication.

Keywords: Outsourcing, Organizational Performance, Money Deposit Banks, Human Resources