Outsourcing and service delivery in non-government organizations in Uganda: The case of IITA- Uganda

Abstract

This study aimed at examining the effects of outsourcing strategy on service delivery of Non-Governmental Organizations (NGOs) and specifically the study focused on IITA. Specifically, the objectives of this study were to examine the effects of outsourcing decision making process, supplier selection and contract management on service delivery at IITA- Uganda. The study adopted a case study approach research design with a blend of quantitative and qualitative approaches to collect and analyse data. In total, a sample of 42 respondents participated in the study. The researcher used both primary and secondary sources of data. Data was collected using questionnaires and interview guides. Quantitative data was analyzed using Pearson correlation coefficient to determine the relationship between variables, while regression analysis was used to establish the extent to which independent variables affected the dependent variable. Findings revealed that outsourcing decision making (r= 621**), supplier selection (r= 681**) and contract management (r= 806**) Contract management had the strongest positive effect on service delivery, accounting for 64.0% variations in service delivery, which means that other factors accounted for 36% variations in service delivery. This is because contract management facilitates the achievement of improved delivery while defining details of quality, efficiency, timing, and method of delivery of the corresponding inputs and outputs required from both parties to support the out sourced process. It was concluded that improvement in outsourcing decision-making, supplier selection and contract management significantly enhance service delivery. The study recommends that management of most NGOs including IITA should always seek views of staff members and carry out adequate planning before deciding to outsource goods and services, not just IT alone. The study further recommends that NGOs including IITA should always adhere to the criteria of selecting the supplier of IT and consider the reliability of potential suppliers who have the ability and competency to supply the required goods and services as per the stated specifications. NGOs should always make procurement plans at the start of the financial year to facilitate improved service delivery. Further areas of research should focus on factors that affect the adoption of IT and the quality of service delivery in outsourcing. Or the impact of outsourcing strategies on quality of service delivery in non-Government Organizations.