gender differential paper IJCRB

ijcrb.webs.com
JUNE 2011
INTERDISCIPLINARY JOURNAL OF CONTEMPORARY RESEARCH IN BUSINESS VOL 3, NO 2
Enhanced technology: many companies tend to participate in outsourcing leading to advancement
in technology as manpower with technological experience from different sources are transferred
from one company to another and from one regional location to another even from one continent to
another. Thus enhancing high-class technology to different parts within the world.
Time saving: the availability of more skilled people brings new ideas of better work done within
which the suppliers bring about raw materials and any needed material for production and prompt
service delivery.
Increases productivity: as more expertise manpower skilled is very much available in an
organization, the level of decision making within that organization is going to be very high and very
effective at the same time. Out of good decisions, better work and less accident, the organization
tends to be more productive .
However among others, competitive and economical advantages, commodification and cost
reduction are other positive effects of outsourcing;
On the negative side, loss of job-opportunity loss of control of an organization-with a lot of ideas
from different people, this makes the level of decision making to be slow and control can be lost
within the organization.
Not only that, outsourcing for the purpose of saving cost can often have a negative influence on the
real productivity of a company Engardio and Kripalana (2006), stressed the fact that rather than
investing in technology to improve productivity, companies gain non-real productivity by hiring less
people locally and outsourcing work to less productive facilities that appear to be more productive
simply because the workers are paid less.
Methodology
The service industry is taken as the population while ten service institutions were taken as the
samples to test the hypotheses and the objectives of the study. Five banking institutions, two
insurance companies, two Information Technology service companies and one Oil servicing
company were chosen using stratified sampling technique. Questionnaire was administered to collect
data for the study to enable the researchers measure the impact of outsourcing on the competitive
advantage in the industry. The questionnaire was drawn on a five linker scale of Strongly Agree,
Agree, Strongly Disagree, Disagree and undecided. Fifty questionnaires were administered to the
companies with five questionnaires sent to each institution. Out of the fifty questionnaires
administered forty-two (42) were returned representing 84%of the respondents.
Data analysis was both descriptive and inferential. Simple percentage was used to analyse the data
and chi-square was used test the hypotheses whose data take the form of countable and is often
referred to as contingency tests.
Data Analysis and Discussion of findings
The analysis of data in this study is presented below. Since the study seeks to determine the impact
of outsourcing of leasing on the competitive advantage of an organization for analytical purpose, the
findings in this study are classified under different tables as below.
Hypothesis 1: High operating costs have no negative impact on profitability and return on capital in
service delivery industry.
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