The Assessment of Management Outsourcing on the Performance of Ethio Telecom

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Addis Ababa University


The objective of this research was to assess the performance gains due to the management outsourcing of Ethio Telecom. This research covered managers from Ethio Telecom, staffs at supervisor and lower level and personnel assigned from MCIT. The samples involved in the study were 320 staffs at supervisor or lower level and 10 managers selected from senior management positions. The staffs were selected using a multi stage stratified clustering method. The study result indicated that the outsourcing of ET management had positive impacts in some of the performance measuring parameters and negative effects in the others. The areas that showed positive improvement due to the outsourcing are branding & marketing, customer handling, development of new services, service delivery and organizational improvements like planning, scheduling and project follow up. In the other hand employee relationship, staff – management harmony, working environment, training and development and support of existing network had been affected negatively. The study result also revealed that the human capacity building in ET during the outsourcing period was weak. Most of the managers and staffs were arguing the knowledge transfer expected from an international service provider was not gained. The inability to sustain the good changes introduced by France Telecom was also mentioned as a short coming. Overall outsourcing of the top management of a company is a huge undertaking which needs a due diligence in decision of outsourcing, selection of a capable service provider, implementation of the outsourcing according to pre defined targets and management of the outsourcing. Hence it is recommended to set up clearly defined and measurable targets before engagement in the outsourcing practice and monitoring the performance on regular basis.



Management outsourcing