The Potentials and Challenges of Outsourcing Public Services in Developing Countries: Evidences from a Tanzanian Public Sector Organization
Author(s)
Dr. Andrew Sulle , Filberth Mwinuka ,
Download Full PDF Pages: 44-49 | Views: 589 | Downloads: 197 | DOI: 10.5281/zenodo.4972620
Abstract
Outsourcing has become a common feature of public service management in many part of world. This approach is being used by public organizations to strengthen their core competencies to ensure cost-effective management of resources. Besides the assumed potential benefits, the outsourcing can also bring a number of challenges. The purpose of this study is to assess the actual experiences of outsourcing of services in a public sector organization with the aim of outlining the benefits, challenges and lessons for future outsourcing initiatives. The study focuses on Urban Water Supply and Sanitation Authority (UWASA) unit in Tanga (Tanzania). Forty four employees of the UWASA were interviewed to record their perception about the benefits and challenges of using outsourcing methods in service delivery. The findings indicate the potential benefits of the outsourcing in terms of costs reduction, improved efficiency and greater accountability standards. The major challenges noted in outsourcing included negative attitude of staff, poor monitoring and evaluation, non-cooperation by staff and interference by community. It is hoped that the findings will be useful for further research in this subject area and also for the policy making
Keywords
Service Outsourcing, Tanzania, Public Sector, Outsourcing Challenges
References
i. Bourassa, 1998,” Outsourcing IT, CMA Magazine”, May 1998, Vol.72, Issue 4 pp 6
ii. Cheon, M.J., Grover, V. and Teng, T.C. (1995). Theoretical perspectives on the outsourcing of information systems, Journal of Information Technology, Vol. 10 No. 4, pp. 209-19.
iii. Dobler D.W and Burt D.N (1996) Purchasing and Materials Management.Text and cases 15th edition, TataMc Graw Hill publishing Company ltd, England.
iv. Ellram, Lisa, Maltz, A. (1997), Outsourcing: Implications for Supply Management. CAPS Research. Tempe.
v. Eyaa, (2000), “The Keys to successful Outsourcing, Procurement News”, March-2006, pp48.
vi. Financial Report (2012), Annual Fiancial Audit Report of Urban Water Supply and Sanitation Authority (UWASA) Tanga Unit for the year ending 30th June, 2012, Government of Tanzania.
vii. Financial Report (2013), Annual Fiancial Audit Report of Urban Water Supply and Sanitation Authority (UWASA) Tanga Unit for the year ending 30th June, 2013, Government of Tanzania.
viii. Gilley K.M. & Rasheed A.A. (2000). Making More by Doing Less: An Analysis of Outsourcing and its Effects on Firm Performance. Journal of Management, 26(4), pp. 763-790.
ix. Girma S. & Görg H. (2004). Outsourcing, Foreign Ownership, and Productivity: Evidence from UK Establishment-level Data. Review of International Economics, 12(5), pp. 817-832.
x. Görzig B. & Stephan A. (2002). Outsourcing and Firm-level Performance. DIW Discussion Paper No. 309. Berlin.
xi. Gottschalk, P. and Solli-Saether, H. (2005). Critical success factors from IT outsourcing: an empirical study, Industrial Management & Data Systems, Vol. 105 No. 6, pp. 685-702.
xii. Greaver, Maurice F. (1999), Strategic Outsourcing: A Structured Approach to Outsourcing Decisions and Initiatives. AMACOM.
xiii. Kubr, M. (2002) Management Consulting a guide to the profession. Geneva: International Labour Organization.
xiv. Lysons K, & Gillingham M, (2003); Purchasing and Supply chain Management, (6ED). Prentice Hall, Britain
xv. Mlinga, R.S. (2008), From Chief Executive Officer, Tanzania Procurement Journal,30th September 2008. Vol 1 No.15
xvi. Quinn, James B. Hilmer (1994) Strategic Outsourcing, Sloan Management Review, Vol. 35, 4, pp. 43-55
xvii. Sang, J. (2010). Outsourcing in Kenyan Universities: An Examination of Challenges and Opportunities, International journal of Business and Social Science, Vol1, No2 pp 204-210
Cite this Article: