Factors influencing the level of outsourcing of non-core services as a cost reduction strategy in public universities in Kenya
Biebei, Catherine Chelang'at
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Outsourcing of non-core service areas reduces operating costs. Public universities in Kenya continue to experience declining government funding amidst increasing student population and, yet they have not embraced non-core service outsourcing. The aim of this study was to examine the factors influencing the level of outsourcing as a cost reduction strategy adopted by public universities in Kenya. The objectives of the study were: to determine the factors that influence the level of outsourcing of non-core services in public universities in Kenya; to assess how these factors have affected outsourcing of non-core services in public universities in Kenya; to assess the role of outsourcing as a cost reduction strategy in the provision of non-core services in public universities in Kenya; and to propose ways of enhancing outsourcing as a cost-reduction strategy in the provision of non-core services in public universities in Kenya. This study was a case study of four public universities in Kenya namely Kenyatta, Moi, Maseno and Masinde Muliro. The study population comprised all the top management staff, directors/ managers of non-core departments and Deans of students in all the campuses of all the seven public universities in Kenya. The researcher sampled 30 respondents from the four mentioned universities. Data for the study was collected from the sample population using open-and closed-ended questionnaires delivered and collected by the researcher in person. The researcher screened the collected data for omissions and inaccuracies and sought clarifications where possible. The data was then grouped and categorised for ease of analysis and interpretation. Percentages, ranges, and frequency distributions were determined manually and data interpretation done by use of tables, graphs and prose discussions. The study findings showed that public universities in Kenya acknowledged the cost reduction benefit of outsourcing of non-core services.