Factors Influencing Offshore Business Process Outsourcing among International Banks In Kenya

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dc.contributor.author Karanja, Anne Kikoni
dc.date.accessioned 2017-06-27T08:07:43Z
dc.date.available 2017-06-27T08:07:43Z
dc.date.issued 2017
dc.identifier.uri http://erepo.usiu.ac.ke/11732/3248
dc.description A Research Proposal Submitted to the Chandaria School of Business in Partial Fulfillment of the Requirement for the Degree of Global Executive Master of business administration (GeMBA) en_US
dc.description.abstract The purpose of this study was to assess the factors influencing offshore business process outsourcing implementation among international commercial banks in Kenya. To achieve this purpose, the study was guided by three research questions: What is the significance of offshore business process outsourcing implementation among international banks in Kenya? What are the challenges encountered by international banks in Kenya in offshore business process outsourcing implementation? And how does monitoring and evaluation affect offshore business process outsourcing implementation among international banks in Kenya? This study used descriptive survey design which necessitated the collection of both qualitative and quantitative data. The study focused on 20 international commercial banks operating in Kenya and targeted 6 employees from each international bank making a sample of 120 respondents. Structured and closed ended questionnaires were used to collect primary data and were distributed by research assistants. Statistical package for social sciences (SPSS) version 21 were used for analysis where means, frequencies and percentages for each variable were analyzed. The results of the study were then presented in bar graphs, tables and pie charts. The study determined that the reasons for offshore business process outsourcing included cost cutting, increase an organizations’ profitability index and lead to better service quality. The study further ascertained that off shoring the non-core business activities to outsiders is typically handled by highly skilled labour force and dynamic ICT systems leading to better service and resulting in higher output. The study ascertained that the challenges encountered during offshore business process outsourcing include the lack of data privacy as information is shared with another company and confidentiality isn’t guaranteed. Other challenges noted in the study include loss of control and autonomy; fear of loss of jobs, increase in transportation costs due to tariffs and the taxes levied. The study also determined that monitoring and evaluation is important in business process outsourcing (BPO) as it ensures that all activities are executed according to set expectations. The study further observed that successful monitoring and evaluation applied on offshore business process outsourcing delivers timely, relevant information enabling one to track the progress of the whole process. The study also found out that monitoring and evaluation enables the management to make informed decisions on how best to utilize resources so as to achieve maximum outputs while identifying disasters and resolving them. The study determined that the reasons for Offshore Business Process Outsourcing included majorly cutting costs, increase profitability and lead to better service quality. The study recommends that the management in an organization should do a thorough scrutiny of organization they are outsourcing to in an effort to meet these objectives. The expectations should also be clearly outlined in a contract between the two companies. As this is a profitable venture that is also effective, then the government and other stakeholders should come up with policies to protect the two companies. The key challenge mentioned in the study is loss of autonomy and control resulting from the sharing of information especially on matters like strategy, business culture and information on human resource. The study therefore recommends that all organizations must act on ‘utmost good faith’ so that information shared isn’t misused. Due diligence should be done of the offshore partners internal control processes prior to outsourcing to determine their efficacy. The study recommends that organizations must set up a robust monitoring and evaluation team to ensure that the offshore business company outsourced to carry out certain functions performs the functions in good time and provides quality service delivery. A Service Level Agreement (SLA) defining the performance criteria against which the agreed services will be provided, measured and monitored should be put in place. The defined performance criteria should be periodically reviewed throughout the term of the SLA to allow for the incorporation of any new services. en_US
dc.publisher United States International University - Africa en_US
dc.subject Offshore Business Process en_US
dc.subject Outsourcing en_US
dc.subject International Banks In Kenya en_US
dc.title Factors Influencing Offshore Business Process Outsourcing among International Banks In Kenya en_US
dc.type Thesis en_US

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