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The main objective of this study was to assess the contribution of outsourcing
procurement strategy in achieving value for money the case of DUCE. Specifically,
the study intended to find out challenges associated with outsourcing procurement,
evaluate the decision criteria for outsourcing in Government institutions as well to
investigate on how outsourcing procurement is being effected within DUCE.
During the time of conducting research, it was found that outsourcing procurement
contributes much for the achievement of value for money at DUCE in such a way
that it facilitates freeing the time of the DUCE’s management to concentrate on a
core function i.e., training (educational issues) and leaving the noncore services in
hands of the outsourced services providers. But also outsourcing has minimized the
cost of providing noncore services since it enables the institute to avoid various costs
i.e. training and development costs, healthy and risk allowances, administration or
supervision cost etc.
The study revealed some challenges associated with outsourcing procurement i.e.
Shortage of fund to facilitate outsourcing procurement, shallow knowledge on
outsourcing procurement among procurement staff etc.
Furthermore , the research has come up with several recommendations so as to pave
the way for an effective implementation of outsourcing procurement in government
institutions , such recommendations are highlighted as follow; government has to
provide a sufficient fund for outsourcing procurement and should be on/ in time,
government has to create conducive environment to allow modern communication
facilities such as e-procurement , government has to establish good infrastructures
and transport facilities i.e. vehicles so as to enhance the smooth execution of
outsourcing procurement, procurement staff have to be equipped with vast
knowledge on outsourcing procurement so as to act competently as well as
confidently , but also suppliers have to provide the services which comply with the
high quality of services being provided so as to meet the customers’ expectations.
Conclusively, the study has revealed that 93% of the respondents do support the use
of outsourcing procurement in government institutions since it brings about value for |
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