Challenges and Prospects of Outsourcing Practise in Commercial Bank of Ethiopia
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Date
2017-05
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Addis Ababa University
Abstract
he purpose of this research is to assess the challenges and prospects of outsourcing the non-
core activities in commercial bank of Ethiopia. The study areas were CBE branches under
east Addis district and the outsourcing administrative office. The research is a descriptive
study applying both quantitative and qualitative approach in which questioner was collected
across a population through simple random sampling and uses descriptive statistics for the
data analysis.
The finding of the study shows that outsourced service assist commercial bank of Ethiopia to
focus more on core functions and strategic areas, to save management time and expand its
branch assertively. On the other side, difficult to measure service quality, low employee
belongingness and loss of control were the major challenges of the bank due to outsourcing.
Finally based on the finding, the researcher recommended that monitoring and evaluation
system need to be put in place for timely corrective action before time elapses and
rectification becomes so difficult. When it is used in a calculated and well-designed way,
outsourcing could bring lots of benefits to the client organization. If applied without proper
assessment of the capacities of service providers, it may involve irreparable damages in the
short-range and could draw lots of risks that may disturb time-honoured organizational
culture. Hence, any form of outsourcing is likely called for maximizing benefits and
minimizing risks
Key Words
Challenges of Outsourcing, Benefits of outsourcing, Employees attitude
Description
Keywords
Challenges of Outsourcing; Benefits of outsourcing; Employees attitude