gender differential paper IJCRB

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JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
He explained the Nigerian economic environment that was hostile to business during much of the
first half of nineties. However, over the last 5-7 years there has been a gradual return of some
economic stability to the economy. In Nigeria different firms provide single components of the
typical services under facility management. These component services and the firm that provide
them vary significantly in terms of sophistication, customer acceptance, and market
awareness/development. This in turn affects industry maturity, health, structure/complexity, size,
depth and number of players. He said the scientific approach to choosing between alternatives of
ownership and outsourcing is economic. Such approach will consider not only technical efficiency,
but also establish financial gains from whatever choice ia made. That ample evidence abounds in
Nigeria, especially in public buildings that significant improvements in the quality services can be
achieved via outsourcing because outsourcing companies have more and better trained staff. Also
supervision is also significantly better, all of which results in better quality of service. Outsourcing
companies seek and adopt newer technologies faster than any player who decides to own such
services internally. Optimizing operations and maintenance i.e managing people, place and purpose,
significant gains in optimization of resources used can be achieved.
Outsourcing Software Components: Opportunities for developing countries:
Daramola and Bamigboye(2009) defined outsourcing in Nigeria as the delegation of tasks or jobs
from internal production to an external entity such as subcontractor. Business processes can be
outsourced to either domestic subcontractors or offshore subcontractors who are otherwise known as
Outsource Service providers (OSP).They stated that the rise of globalization is making many more
companies in the developed countries to embrace offshore outsourcing. This entails the
subcontracting of business processes to other countries in other regions of the world. They based
their study on software outsourcing. A software component is a unit of composition with
contractually specified interfaces and explicit context dependences only. That a software component
can be deployed independently and is subject to composition by a third party. They came out with
the following reasons why companies adopt outsourcing strategy in business management (i) A lot
of money could be saved on staff emoluments, equipment, training, and maintenance when projects
are outsourced. (ii) There is shortage of IT professionals in the developed countries because of the
rate of technological development which has reached a critical proportion. There were 340,000
vacant IT position in USA.(iii) Some of the countries to which jobs are being outsourced have a
more liberal business environment with lesser taxes,less stringent labour laws compared to
developing countries .(iv) Technical competence can be acquired offshore at a cheaper price.They
further explained the following benefits from findings:
(i)Profitable bargain from signed outsourcing contracts leading to more profit.(ii) Acquisition of
more software development experience through collaboration.(iii).More profit for the company,
which translate to higher potential for capacity building, staff welfare and better recruitment.(iv)
Acquisition of cheap technical competence with high productivity.(v) Faster development is
achieved with quality standard.(vi) Reduction in overall development cost which may be up to
50percent.
Development of a Service Industry Coalition in Nigeria:
Dalhat (2009) explained that a well developed services sector enhances competition, leading to
stimulation of economic activities and ultimately reducing poverty. Hence the need for coalition
service industry in Nigeria. That the objective of setting Coalition Service Industry should be 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 market. That the coalition will
enhance outsourcing of services in Nigeria, promote the further development and competitiveness of
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