ASSESSMENT ON BENEFITS AND CHALLENGES OF OUTSOURCING PRACTICES – THE CASE OF INTERNATIONAL COMMUNITY SCHOOL OF ADDIS ABABA

Abstract

The aim of this research is to assess the Benefits and Challenges of Outsourcing Janitorial, Landscaping, Setup crew and Security services in International Community School of Addis Ababa and provide a possible solution that alleviate the existing problem. This research thesis employed descriptive research design with concurrent mixed research approach where both qualitative and quantitative investigation has been implemented to evaluate the benefits and challenges of outsourcing decisions. The data were collected using questionnaires from 92 employees of International Community School & 25 outsourced employees. Interviews were also conducted with supervisors and managers who supervise those outsourced services in addition to the researcher’s personal observation. The questionnaire was distributed to the employees on the basis of proportional and purposive sampling technique by stratifying the sample in to five groups and the data collected were analyzed using SPSS Version 23 software. The results of the study revealed that the outsourced services enabled the school to give more attention & focus on its core functions rather than auxiliary ones and it also helped to save managers’ time and assisted in the current fast growth of the school. On the contrary, language and communication barrier, threat to security and confidentiality and inconsistent service quality were the major challenges of the school as the result of outsourced services. Thus, the performance of the service providers was not as per the service level agreements. Finally, the researcher has forwarded some recommendations to overcome the existing challenges of the school regarding outsourcing practice. It is recommended that sharing with outsourced employees its values, beliefs, and goals through both formal and nonformal communication channels and providing appropriate trainings and incentives to them help the school to reduce the risks and challenges associated with outsourcing and attain optimal benefits out of it.