Motives of Human Resource Outsourcing and Performance Outcomes among Mobile Telecommunication Firms in Kenya Pamela Eng’airo

Abstract

The political, economic, social and legal environment that businesses operate defines the scope of actions that can be taken and shapes decisions. Outsourcing is one of the delivery mechanisms adopted by organizations to ensure competitiveness by enabling them invest time, money and human resources into core activities and letting other parties do the other functions more competently on their behalf. This study sought to examine the link between motives of human resource outsourcing and performance outcomes among mobile telecommunication firms in Kenya. Specifically the study examined the effect of cost efficiency, expert service, HR flexibility and business improvement on performance outcomes among mobile telecommunication firms in Kenya and sought to determine whether services outsourced moderate this relationship. A descriptive survey design of cross-sectional nature of three mobile telecommunication firms was conducted. The target population was all three hundred and twelve (312) managers in three mobile telecommunication firms operating in Kenya. Data was analyzed using descriptive statistics, correlation analysis and logistic regression analysis aided by Statistical Package for Social Sciences (SPSS). The study is significant to all telecommunication firms in Kenya as it will provide valuable information on the link between motives of human resource outsourcing and the performance outcomes. The study found negative and significant relationship between cost efficiency and performance outcomes. There was a positive and significant relationship between expert service motive and performance outcomes, a positive and significant association between HR flexibility and performance outcomes and a positive and significant association between business improvement and performance outcomes. The services outsourced partially moderated the relationship between motives of human resource outsourcing and performance outcomes. The study concludes that cost efficiency, expert service, HR flexibility and business improvement all affect performance outcomes. Firms should engage in human resource outsourcing in order to gain competitive advantage but cost efficiency should not be the most important reason as there seems to be no direct relationship with performance outcomes.