An investigation of the effectiveness of outsourcing and its impact on organisational performance: case of Unki Mines

Abstract

The study is an investigation of the effectiveness of outsourcing and its impact on organisational performance. The problem was that the firm experienced decreases in profits while contractor costs increased from 2012-2015. Unki’s reports indicated that it had also been experiencing adverse variance in its contractor’s expenditure for the past three years this necessitated the research. Literature review was carried out in an attempt to explore on what authors said on outsourcing. The main sources of related literature were internet journals, accounting text books and websites. The researcher made use of descriptive research design where both qualitative and quantitative research design were made use of on questionnaires and interviews. A sample size of thirty one was carried out. Both primary and secondary data were analysed, presented and interpreted. Presentation was in form of tables, graphs and pie charts that was simplified through the use of the Likert Scaling model. Conclusion and recommendations were made to the organisation to minimise challenges and risks of outsourcing.