FINANCIAL MOTIVE OF HUMAN RESOURCE OUTSOURCING AND PERFORMANCE OUTCOMES AMONG MOBILE TELECOMMUNICATION FIRMS IN KENYA

Pamela Eng'airo

Abstract


The political, economic, social and legal environment that businesses operate defines the scope of actions that can be taken and shapes decisions. Outsourcing is one of the delivery mechanisms adopted by organizations to ensure competitiveness by enabling them invest time, money and human resources into core activities and letting other parties do the other functions more competently on their behalf.  This study sought to examine the link between financial motive of human resource outsourcing and the performance outcomes among mobile telecommunication firms in Kenya. A descriptive survey design of cross-sectional nature of all mobile telecommunication firms was conducted. The target population was all three hundred and twelve (312) managers in three mobile telecommunication firms in Kenya. Data was analyzed using descriptive statistics, correlation analysis and logistic regression analysis aided by Statistical Package for Social Sciences (SPSS). The study is significant to all telecommunication firms in Kenya as it will provide valuable information on financial motive of outsourcing and performance outcomes. The study found negative and an insignificant relationship between financial motive of human resource outsourcing on performance outcomes. The study recommends that financial motive should not be the main driver of human resource outsourcing as there seems to be no direct relationship between the financial motive and performance outcomes.           

Key Words: Human Resource, Outsourcing, Financial, Telecommunication Firms in Kenya


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