The Effect of Outsourcing on the Performance of 40/60 Program Condominium Housing Construction Projects in the Case of Saving Houses Development Bureau-in Bole Sub City

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Addis Ababa University


The major objective of this study is to investigate the effects of outsourcing on performance of 40/60 program condominium housing construction projects in the case of Saving Houses Development Bureau-in Bole sub city. The basic or principal research questions of this study includes, what are the factors influencing contractor’s efficiency in 40/60 program housing construction works? what are the problems of the external contractors in related to preparation of plan, vendor selection, transition, management of relationship and reconsideration to provide successful services in 40/60 program housing construction projects? what is the effect of outsourcing on the performance of saving houses development? In order to meet the objectives of this study and answer the basic research questions the researcher employed the following approaches and methods consecutively:-the research approaches used was quantitative, the research methodology was descriptive survey method, the sampling design used in this study was stratified probability sampling, the nature and sources of data include primary and secondary data on which the primary data were gathered from two strata’s whom were workers/staffs/ of the organization and professionals/external contractors and consultants/, and the secondary data were collected from various published and unpublished documents consisting of policies and strategic documents of the organization, data gathering tools include questionnaire and document review and the method of data analysis also was the numerical based method which is a quantitative data analysis method. As of the findings of this study the outsourcing practice held in this organization affects the overall performance of 40/60 condominium housing construction project. This is observed mainly by the improper planning, poor vendor selection practices, and weak management relationship, reconsideration, inefficiency, poor quality of the work done and inconsistent on time delivery through the observation of the key factors of outsourcing. In light of these all therefore, this study arrived at conclusions and made recommendations based on the findings in order to improve the current practices regarding outsourcing. .



Effects of Outsourcing, Roles of External Contractors, Contractor’s Efficiency, Successful services