CHALLENGES AND PROSPECTS OF OUTSOURCING: THE CASE OF INTERNATIONAL LIVESTOCK RESEARCH INSTITUTE (ILRI) – ETHIOPIA

Abstract

This research seeks to assess the challenges and prospects of outsourced support service in International Livestock Research Institute. To identify why the institute chooses to outsource, whether or not the outsourced Support service bring value for money and efficiency. This research thesis employed descriptive research approach with both qualitative and qualitative investigation to evaluate the challenges and prospects of outsourcing decisions. The data were collected using questionnaires from 43 permanent employees of International Livestock Research Institute that are based in Addis Ababa office. Moreover, interviews were conducted with the Supply Chain Manager and other two unit managers who supervise those outsourced services. The questionnaire was distributed to the employees on the basis of purposive and simple random sampling and the data collected were analyzed using SPSS Version 22 software and analyzed using descriptive statistical methods. The findings revealed that outsourcing at ILRI positively contributed to cost efficiency and positively contributed to improved productivity but at the same time the finding shows that there is inconsistency with service quality and a communication gape within outsourcing service provider employees. Finally, the researcher has forwarded some recommendations to solve the existing problems of the organization regarding outsourcing practice. If the organization could able to exercise recommendation, it is believed that the organization would be benefited in reducing the challenges of outsourcing in the organization. The research has a limitation as it was made in a limited scope within ILRI Addis and further studies were recommended. The research findings point out conclusions as to why organizations prefer outsourcing, weakness and risk of outsourcing services. These are why outsourcing, Competitive advantages, Organizational strategy, focus on core competency, Flexibility, Knowledge transfer, Value for money, Weaknesses of using an outsourced operation and Risks of using outsourced operations.