| Abstract: | This study aimed to investigate the impact of non-core business functions on the quality of service delivery at the Commercial Bank of Ethiopia, focusing on branches within Addis Ababa City. Employing a descriptive and explanatory design, along with a quantitative research approach, the study encompassed all 494 branches of CBE across eight districts in Addis Ababa. A sample of 221 respondents was selected through cluster random sampling, with 198 (86.6%) providing complete and valid responses to a questionnaire designed to gather information on the effects, challenges, and opportunities of outsourcing on core services at CBE. Key findings revealed that the study assessed various factors, including Service Quality Delivery, Employee Belongingness, Employee Commitments, Coordination & Communication, Contractual Agreements, and Vendor & Selection Management. Notably, positive correlations were found between Service Quality Delivery and Employee Belongingness, Employee Commitments, Contractual Agreements, and Vendor Selection and Management. Multiple regression analysis highlighted significant positive relationships for Employee Belongingness, Employee Commitments, Contractual Agreements, and Vendor Selection and Management with Service Quality Delivery. However, Coordination & Communication did not exhibit a statistically significant effect. Based on these findings, the study proposed several recommendations for CBE and similar institutions, such as strengthening employee commitment through recognition programs and a positive work environment, enhancing communication channels and coordination, improving the clarity of contractual agreements, and maintaining effective vendor relationships. Additionally, the study suggested implementing ongoing initiatives for employee belongingness, customer-centric training programs, fostering collaboration between business functions, conducting regular employee surveys, and investing in leadership development programs. |
