Impact of outsourcing on small and medium-sized business in Nigeria : Strategic Outsourcing Ltd
Akindayo, Daniel (2021)
Akindayo, Daniel
2021
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Julkaisun pysyvä osoite on
https://urn.fi/URN:NBN:fi:amk-2021052611533
https://urn.fi/URN:NBN:fi:amk-2021052611533
Tiivistelmä
This thesis explores the impact of outsourcing on small and medium-sized enterprises (SMEs) in Nigeria. It primarily focuses on strategies that SMEs will employ to gain benefits in the global competitive market. It includes the pitfalls that the companies encounter as it attempts to adopt the outsourcing strategies and recommends ways that can enable them to facilitate economic growth and development. Although outsourcing allows the company to focus on core activities, reduces operation costs, and manages risk effectively, corruption, economic and cultural barriers, lack of sufficient managerial knowledge, and technology capabilities pose risks to the business when employing this strategy. The current study used a quantitative research method in which 75 participants from Strategic Outsourcing Limited (SOL) were surveyed.
The research primarily focuses on SOL, an outsourcing firm commenced in 2006 in Nigeria, which delivers personnel, sales, and statutory compliance outsourcing services. The company has broken a record of excellent service delivery to its clients countrywide, including real estate, food and beverages, telecommunication, and manufacturing, among other business sectors. The current study employed a quantitative approach in which SOL managers were assessed using questionnaires. The result revealed that Nigerian managers supported outsourcing among SMEs because it positively impacted SMEs and led to the creation of more jobs, improved cost efficiency, and better concentration of core competencies. However, the Nigerian managers also expressed concerns about certain obstacles which hindered outsourcing among SMEs, including poor infrastructure and corruption and unfavorable government policies.
The research primarily focuses on SOL, an outsourcing firm commenced in 2006 in Nigeria, which delivers personnel, sales, and statutory compliance outsourcing services. The company has broken a record of excellent service delivery to its clients countrywide, including real estate, food and beverages, telecommunication, and manufacturing, among other business sectors. The current study employed a quantitative approach in which SOL managers were assessed using questionnaires. The result revealed that Nigerian managers supported outsourcing among SMEs because it positively impacted SMEs and led to the creation of more jobs, improved cost efficiency, and better concentration of core competencies. However, the Nigerian managers also expressed concerns about certain obstacles which hindered outsourcing among SMEs, including poor infrastructure and corruption and unfavorable government policies.