Effect of Outsourcing on Performance of Private Universities A Case of Daystar University, Nairobi, Kenya

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Date

2018-11

Journal Title

Journal ISSN

Volume Title

Publisher

Daystar University, School of Business & Economics

Abstract

Universities are increasingly adopting outsourcing of functions to save on cost, improve productivity, profitability, quality of services and concentrate on the core business of teaching and research. This study sought to establish the effect of outsourcing on the performance of a private university, a case of Daystar University. The objectives of the study were; to identify the activities adopted in the outsourcing process at Daystar University, to establish the effect of outsourcing on performance and to determine the challenges faced by the University in the outsourcing process. The study was guided by three theories, Agency Theory, Transaction Cost Economics, Theory and Resource Based View Theory. The study adopted descriptive research design and applied a census of the target population which was composed of 73 respondents. Primary data was collected using questionnaires and interviews. The data was analysed and presented in the form of tables and regression equations. The study found that relationship management in the outsourcing process had the most significant influence on performance, with a one-unit change in relationship management resulting in a 0.329 change in performance. It is recommended that Daystar University reviews its system of executing the outsourcing process in order to gain maximum benefits from outsourcing. One of the main challenges as stated by 68.8% (40) of the respondents in the study was dilution of the culture of the University. It is recommended that the University needs to have a mechanism of ensuring that the institution assimilates the service providers without allowing them to dilute the culture of the institution.

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Keywords

Outsourcing, Performance, Private Universities, Daystar University

Citation

Kinoti, J. K. (2018 Thesis). Effect of Outsourcing on Performance of Private Universities A Case of Daystar University, Nairobi, Kenya. Daystar University, School of Business & Economics