Assessment of Outsourcing Practices in the Case of Ethiopian Electric Utility
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Date
2020-06
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Publisher
A.A.U
Abstract
The purpose of this research project is to assess the outsourcing practices in EEU to enhance deeper understanding on the reasons, process and effects of outsourcing. As companies are increasingly exposed to many challenges in the dynamics of global world, outsourcing has become one of the strategic tools of management in many organizations to address the dynamics of business complexities. These new phenomena needs be systematically explained, and well understood, where the motivation of this research aims at addressing this issue by exploring comprehensive literature study and conceptual framework. The study employed both quantitative and qualitative data collected through standardized questionnaire, interview discussions and referring available secondary data sources, and analyzed using descriptive statistical tools. The findings of the study show that the outcomes of outsourcing have a positive relationship between motivation to outsource, and the outsourcing process, while no correlation shown between motivation and process of outsourcing. The level of effectiveness varies among the functions outsourced. The functions show partial improvement by outsourcing were office cleaning services, security services and distribution line construction work in cost reduction, risk sharing, and focusing on core functions, while some other functions such as Bill collection, and Management Contract were unchanged or no improvements revealed. EEU lacks formal and structured bases of outsourcing decision making that emanates from absence of outsourcing strategy aligned with corporate strategy.
Description
Submitted to Addis Ababa University, College of Business and Economics, Department of Management in Partial Fulfillment of the Requirements for Executive Masters of Business Administration (EMBA)
By: Hibrework
Keywords
Effects of outsourcing., Outsourcing, Outsourcing strategy