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The study was on the effects of service outsourcing on performance of mobile telecommunication industry in Tanzania, the case of MIC Tanzania Ltd as known as tigo. The study investigated the factors causes telecommunication Companies to outsource services, the challenges facing telecommunication Companies to outsource services and the consequences of implementing outsourcing strategies in telecommunication companies. The study involved a sample of 200 respondents. Data collection methods were questionnaires and interview questions.
Results revealed different factors that cause a company to outsource the services such as; achieving economies of production, developing the technological advances and manufacturing processes, improving the customer service delivery processes, improving core competency areas, lack of trained and qualified manpower, absence of specialists or experts and reduce costs. It was also revealed that different challenges associated with the outsourcing such as; loss of managerial control, hidden costs, threat to security and confidentiality, there was quality problems, tied to the Financial Well-Being of another Company, bad publicity and language barriers. However, it was revealed that outsourcing has consequences to employees, customer, community, stakeholders. Other consequences reduce costs, increase and possibly harming its economy.
Results concluded that outsourcing is an option or opportunity, not a dirty word and not a panacea. It is an approach or strategy that, under certain conditions, can make the difference between whether or not a company survives in today’s highly competitive business climate. The decision to outsource is a strategic consideration, perhaps one born out of necessity. The management team owes it to all stakeholders to accurately, thoroughly, and objectively assess all pros and cons of the outsourcing question. It was recommended that the most frequent reasons for addressing human resource outsourcing are cost savings and optimization of tasks. |
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