The effect of outsourcing noncore business functions on company’s performance: The case of Wegagen bank s.c
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Date
2020-06
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Addis Ababa University
Abstract
The basic importance of outsourcing are focus on basic functions reducing of cost, develop
employ experience, to enhance performance, and flexibility. But the outsourcing experience of
Wegagen bank S.c is faced different Weaknesses such as; Poor potential of the service providers,
staff members of outsourced function lacks professional concepts and experience, that staff
members of outsourced functions lacks organizational commitment and have ethical problems
due to this it increases risks.
This paper was designed to identify effect of outsourcing noncore business functions on the
company’s performance the case of Wegagen bank S.c. Resources were collected through
questionnaire, interview and different internal documents of the bank with several limitations
like financial constraints, the problem of covid-19 and time constraints. Descriptive statistics,
Mean and frequency were used to analyze the data. Interpretation is made on the mean,
frequency and percentage of data.
The finding of the study determines that the bank outsources the security and cleaning activities
and it makes reduce costs, get concentrate on their core activities and avoid different
investments in human resource. At the end the researcher of this study suggests that the bank
should focus to minimize the impact of outsourcing on delivering quality service, increasing
satisfaction and improving competitiveness and efficiency.
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Keywords
Outsourcing, performance, customer, satisfaction