OUTSOURCING STRATEGY AND PERFORMANCE OF SELECTED MANAUFACTURING COMPANY IN ILORIN METROPOLIS

Abstract

Outsourcing strategy plays a significant role in improving the organizational performance. To ensure continuous productivity and organizational performance, management should ensure to formulate and adopt effective outsourcing strategy that will help increase their organizational performance. This study assesses the effect of outsourcing strategy on organizational performance in selected manufacturing company in Ilorin metropolis. The study has the following specific objectives to: determine the effect of increased-focus outsourcing on organizational growth, to establish the effect of reduced-cost outsourcing on organizational growth and to establish the effect of innovation-driven outsourcing on organizational growth. The population of the study consist staff of the selected company with a total of 106 and census sampling technique was used due to the few number. The study was carried out with 106 structured questionnaires that were administered and distributed to the staff of the selected company in Ilorin metropolis. Descriptive analysis and statistical inferential methods were used to analyze the collected data. Findings of the study show that increased-focus outsourcing and reduced-cost outsourcing were tested at 5% level of significance (0.00<0.05) and shown that all have significant effect on organization performance. The study therefore recommended that organisation management, in order to enhance organisational performance, the organisation should ensure the instituted performance feedback measures assist in the enhancement of skills of outsourced employees, increase job knowledge and contribute towards minimization of error rates.