Business Process Outsourcing and Competitive Advantage the Case of Ethiopian Postal Service Enterprise
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Date
2014-06
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Addis Ababa University
Abstract
The main objective of the study is to assess competitive advantage that EPSE achieve from Business Process Outsourcing (BPO) market strategy and its effect on organizational performance. To achieve this objective, the primary data was collected by questionnaires survey, interviews, focus group discussion and personal observation Secondary data was collected from customer satisfaction index, mail circulation index, Annual Reports and Strategic Plan (2011-2015). The collected data were analyzed by descriptive statistics (frequencies, percentage, mean and slandered deviation).The population for this study was 20 top managements, 14 SPM string committee members and 10 SPM technical committee members. The top management consists of a General Manager, a Chief Executive and 18 Process Managers. SPM string committee consists of 14 mangers, 3 of them from lower, 8 of them from middle and 3 of them from top. SPM technical committee consist of 10 experts who are from different departments. The total population number of the study is 41. The findings reveal that BPO in EPSE has been very low and highly dominated by non core business function such as Janitorial service, Security services, Consultancy services, Maintenance services and Training services. The motivation for BPO in ascending order is; realizing key internal resource, obtaining a better organizational form, advancement in technology and expertise, lowering ongoing investment in internal infrastructure and lack of internal expertise. The finding also shows that BPO has a benefit to create competitive advantage, increase customer satisfaction, increase profitability, increase sales turn over, increase service expansion. It was recommended that the key determinant of success of BPO activities such as poor organization communication, poor choice of sourcing partner, inadequate planning and trainings needed to manage outsourcing activities should be consider before outsourcing activity
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Keywords
Business Process Outsourcing strategy, competitive advantage, core competence