The Impact Of Outsourcing On Manufacturing Firms A Case Study Of Century Bottling Company Uganda Limited

ABSRACT

The study sought to investigate the effect of outsourcing on organizational

performance. The study was guided by the following research objectives, to

investigate whether the company undertakes outsourcing of projects/services, to

establish whether outsourcing programs at the company achieve their stated

objectives of improving organizational performance, productivity, market share, and

quality and to investigate the factors that are associated with the success or failure of

outsourcing programs.

The study findings showed that the company does carry out outsourcing of services

from third party service providers as shown by the greater majority of respondents.

The company though did not suffer adverse disadvantages of outsourcing as only

46.15% of the respondents believed that the company faced disadvantages as a

result of its outsourcing of projects/services to third parties. Instead the company's

outsourcing programs did offer the rewards as was shown by just over 92% of the

respondents believing that outsourcing benefited the company. It was thus

concluded that the company's outsourcing programs marginally satisfied the

company's outsourcing objectives.

The findings also showed that when it came to outsourcing management, the

company was effective and thus concluded that factors that were considered by the

company before outsourcing were Cost restructuring, Quality Appraisal, Current

Employee skills, Appraisal process and legal issues, Staffing issues and Risk

management.

Major recommendations to the study were that the company should reappraise its

objectives for seeking to outsource particular functions of the business. The

company should invest in further training for its own personnel on core aspects of

what services the company carries out in-house and what it out sources. This would

also act as an incentive to the current staff who may not feel completely secure in

their jobs. This insecurity counteracts marginal gains that outsourcing may be

providing to the company in terms of productivity.