Outsourcing and Organizational Performance: A Comparative Analysis of Nigeria Bottling Company Plant and Camela Vegetable Oil Company, Owerri, Imo State, Nigeria

Abstract

Achievement of organizations’ already set out goals and the level of attainment of those goals measure how successful the organizations are. They seek numerous strategies to help them in this quest. One of such strategies is outsourcing. Outsourcing is a management strategy where an organization delegates her major non-core functions to a specialized and efficient service provider enabling her to save both time and money. This research took a holistic look at outsourcing as a strategy and its effect on organizational performance using Nigeria Bottling Company Plant and Camela Vegetable Oil Company both situated in Owerri, Imo State as focal points. Core competency theory was used as theoretical framework.  The survey research design was used, utilizing questionnaire and interviews as instruments of primary data collection.  Library research was source of secondary data used for the analytical discussion. It was observed that outsourcing back office, primary and support activities have significant positive effect on organizational performance. The research therefore, recommends outsourcing as a strategy for improved performance in organizations.

Key words: Outsourcing, Organizational performance, Back office activities, Primary activities, Support activities, Core competency theory

DOI: 10.7176/RHSS/10-12-09

Publication date:June 30th 2020