Outsourcing service and Delivery Effectiveness: The case of Addis Ababa university
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Date
2020-06
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A.A.U
Abstract
This research titled “Outsourcing Services in Quality Delivery Effectiveness in AAU. The purpose of the study is to assess the effectiveness of services outsourcing and delivery in Public Sectors. Mostly public institutions outsourced their services which seems to be non-core activities, in order to concentrate to core activities pertaining to their institution and giving non-core activities to be performed by specialized suppliers/service providers, who will perform better and at low cost. Though Public sectors have outsourced their non-core activities to be performed by specialized suppliers/service providers but some of them have / have not performed as intended for the purposes of providing quality services and this has led a lot of problem to the institutions.
The objectives of the study were to identify the reasons for outsourcing, to examine the effectiveness of the outsourced services, to determine the challenges faced from outsourcing non-core business functions. and to identify that the outsourcer get the expected result or not. The methodology was based on Descriptive survey method with the procedures of quantitative and qualitative (mixed method) research designs to analyze the data collected from the selected campuses. The research employed the use of questionnaires which included both close and open end and the rating scale. The key factors that influenced the choice to outsource a function/activity by management were to allow staff to concentrate on the core activities and to reduce cost. It also emerge that, the key benefits gained from both security and cleaning functions was to focus on core functions, reduce cost, and increase flexibility. On the other hand the challenges faced while outsourcing those functions was the misalignment between the requirement of the AAU and the service provider, AAU did not set an evaluation criteria to measure and evaluate the performance of the service provider and the challenges related the required numbers and qualified manpower. So using the above issues Setting well formulated service level agreement (SLA) in which a company helps to evaluate the service of a vendor and efficient service can be easily differentiated from inefficient. Services with no reward system and low competency of the staff make the vender to provide inefficient services. In addition to that the university also must establish contract management team in each campus who control and report the service provided by the service providers. The study draws attention how effective are outsourced services, in the overall paradigm of quality services delivery in AAU.
Description
Thesis Submitted to Addis Ababa University Business and Economics College in Partial Fulfillment for the Masters of Arts Degree in Public Management and Policy
Keywords
Delivery Effectiveness, Outsourcing service