Determinants of Outsourcing: The Case of Selected Janitor Service Jobs in Addis Ababa, Ethiopia
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Date
2024-09
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Addis Ababa University
Abstract
The purpose of this study was to examine factors affecting outsourcing in the case of Addis Ababa selected janitor service jobs. The study has used explanatory research design in order to examine the effect of Determinant factors affecting Outsourcing decisions. The study design used quantitative and qualitative approaches in order to organize the data desired for the research. Both primary and secondary methods of data collection were used and the questioner as well as interview is used as a source of data gathering. From the total population of 400, a sample of 135 questionnaires distributed and 119 respondents’ response was used to analyze the data. Both descriptive and inferential statistics are used to find the mean score and to test proposed hypothesis and to examine research problems, objectives and questions. The findings of the regression analysis specify that easy access to the right manpower/service have the largest impact on Outsourcing Decisions. Based on the ANOVA analysis and coefficient tables, all the four dimensions used to examine outsourcing decisions (price of outsourcing, reliability of outsourcing service providers, benefits of focusing on core activities, easy access to the right manpower/service) have positive and statistically substantial effect on outsourcing decisions as the f-value = 43.623. In these regards, the four proposed (alternate) hypotheses were rejected by the result of the study. The result of regression analysis of the independent variables on the dependent variable outsourcing Decisions indicates there was a positive and statistically significant effect. The model summary table adjusted r-square value is 0.607 which dictates that 60.7% of Outsourcing Decisions was explained by the variation of the four independent variables and the other 39.3% is due to other independent variables not comprised in the model and the random error. Finally, the researcher recommended to the Addis Ababa Janitor service top management should focus on accessing manpower in order to improve outsourcing activities.
Key words: Outsourcing: Outsourcing, Human resource outsourcing (HRO), Benefits of focusing on core activities, Easy access to the right manpower/service, Reliability of outsourcing service providers, Price of outsourcing