gender differential paper IJCRB

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JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
overall economic performances has made tapping into the opportunities unduly costly and much less
profitable than they should be. According to Alaofin (2003), operating costs are high in Nigeria
inspite of relatively cheap labour hence, running any business according to international standards is
therefore costly. He further stated that facilities management as an area is just evolving in Nigeria
through janitorial services which is the best development component, has been around for nearly 5
decades. Security services are in the level of development. He stated that there are various merits of
outsourcing which include better focus, economics of scale in purchasing and specialization all
obtained in Nigeria. Dalhat(2009) in analyzing the development of a service industry coalition in
Nigeria stated that services regulatory bodies exist, active and with existence of a strong professional
class. That a well developed services sector enhances competition, leading to stimulation of
economic activities and ultimately reducing poverty. He is of the view that there should be coalition
of service industry in Nigeria to develop and diversify the sector and to prepare service providers to
manage the challenges and opportunities which will be presented in an era of expanding global
markets, He outlined other objectives of the coalition as: (i)to promote the further development and
competitiveness of Nigeria’s service sector.(ii) to ensure that the highest industry standards are met
by all Nigerian service providers.(iii) to educate Nigerian service providers on relevant aspects of
the World Trade Organization(WTO) and other trade agreements and on any government policies or
issues which can affect trade in services.(iv)to represent the interests of Nigerian service providers
by lobbying government for legislative and policy changes which will promote fair multinational
rules for trade in services.
The National Outsourcing Policy and Institutional Framework for Nigeria (2007) stated that
outsourcing is gaining momentum globally as a potential candidate for enhancing revenue
particularly in the developing economies with net advantages in operational costs for wages and key
expenses. Outsourcing occurs anytime one enterprise makes a contract with another to perform a
process that is normally done internally by the first enterprise. That globalization through economic
integration requires that individual economies must identify and develop a competitive strength to
harness the benefits of the free flow of trade and financial investment into the future .Globalization
creates a product and services markets that far exceeds the borders of any country and facilitate
access to move capital flows, technology, cheaper imports and larger export markets. Outsourcing of
non-core operations or jobs from internal production to an external entity that specializes in that type
of operation is changing the landscape of business globally. It further stated that in every developed
economy, companies are taking the advantage of cheap and readily available expertise in other
markets to strengthen their competitive advantage in local markets. This same feat should be
achieved in Nigerian economy.
Pearce and Robinson (2005: 75), the authors of a major text on strategy, comment, “Strategy is
pivotal to a company’s survival”. With this top management game plan, the company can stake out a
competitive advantage. Outsourcing is a strategy of a competitive company, which entails
contracting out of the non-core activities to other organizations, which specializes in such activities.
In decision-taken strategy of an organization, the strategy to continue with the production of a
particular service or product or buy the product/service from outside is an issue of cost and benefit
analysis.
The issue of outsourcing is an issue of decision making which deals with the future of the
organization, and involves picking a choice among alternatives available to management. Decision
may be under certainty, risk or uncertainty according to the degree of predictability of the
consequences of the decision. The outsourcing decision can be a case of dropping a segment of the
production processes, make a product line or buy a product line. Two major economic approaches
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