An assessment of outsourcing procurement of Services in enhancing value for money in Government institutions: The case of Dar Es Salaam University College of Education
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Mzumbe University
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A Dissertation Report Submitted to Mzumbe University – Dar es Salaam
Campus College In Partial Fulfillment of the Requirements for the Award of
Degree of Master in Procurement and Supplies Chain Management (MscPscm).
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
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
Keywords
outsourcing procurement, money in Government institutions: