The aim of this study was to evaluate project outsourcing risks on project performance in selected companies in the telecommunication sector in Kenya. The objectives of the study were to establish the influence of financial risk in project outsourcing on project performance in telecommunication industry in Kenya, to examine the influence of performance risks in project outsourcing on project performance in telecommunication industry in Kenya and to identify the influence of lock in risks in project outsourcing on project performance in the telecommunication industry in Kenya. This study was carried out using a cross sectional survey design. The target population comprised of 135 respondents from the 5 Departments which include projects department, administration department, presales department, sales department, service delivery and support department in AVIAT Networks (61 respondents) and Huawei Kenya (74 respondents). The sample size comprised of 100 respondents. The main data collection tools were questionnaires for the employees and interviews for managers. Before collecting the actual data, the researcher carried out a pilot study in Linksoft Communication Systems Ltd to assess the clarity of the questionnaire items so that those items found to be vague or inadequate are discarded or modified to improve the quality of the research instruments. The organizations management were contacted to permit the researcher to carry out the study within the organizations.

Key Words:  Project outsourcing risks, Project performance

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