A Disertation Submitted in Partial Fulfillment of the Requirements for Award of
the Degree of Master of Business Administration ( MBA) of Mzumbe University
2013
ABSTRACT
This study was
to
assess the effect of outsourcing of revenue collection on
organizational performance a case study of Mpanda district council. Specific objectives
of the study were; to identify sources of revenue which are being outsourced and whole
process of outsourcing to identify the benefits of outsourcing revenue collection to
identify the challenges accompanied by outsourcing and to assess the effect of
outsourcing on organizational performance.
Data were collected from 60 respondents who were selected using purposeful sampling
and simple random sampling.The research utilized both primary and secondary data.
Method of data collection were questionnaire, interview and documentary records.
The findings of this study show that outsourcing has led to improved organizational
performance through increased revenue collection and reduction in operating cost,
although they have not attained the best performance. Findings of this research revealed
that revenue sources which are outsourced to revenue collectors are; agricultural
products, fishing products, livestock auction, hotel levy and market fees. It was futher
revealed that some revenue collectors do not comply to terms and condition of the
contract is the challenge in outsourcing of revenue collection.
Recommendations for Mpanda district council are, to collect more realistic information
from wards and division, increase supervision to revenue collectors by visiting them
reqularly and open a communication channel from top management to bottom with
revenue collectors.