A Dissertation Submitted to Mzumbe University Dar es Salaam Campus in Partial Fulfillment of The Requirement for the Award of the Degree of Master of Science in Procurement and Supply Chain Management (MSC PSCM) of Mzumbe University
The study focused on assessing the effectiveness of Outsourcing Contract among Local Government in Tanzania. The study focused on assessing the factors that contribute effectiveness of Outsourcing Contract for the case study of Temeke Municipal Council. Outsourcing is one of important strategies in our today’s competitive business world; organizations are under increasing pressure to reduce costs, particularly in areas that are non-core operations. Temeke Municipal Council is a Council among three located Dar es Salaam Region. To achieve this, specific objectives were formulated including determining factors which influence the effectiveness of Outsourcing Contract in Temeke Municipal Council. A sample of sixty four (64) respondents was selected and data collected through documentary review, questionnaires, and observations. Data were analyzed through qualitatively and thematic analysis to identify the factors which leads to effectiveness of outsourcing contract like knowledge of outsourcing among procurement experts and management in user department, minimization of risks associated with outsourcing and profit maximisation in terms of benefits maximizations.
From the findings it is recommended that more effort should be made to improve the Involvement of user departments in contract negotiation is to be improved, Council has to terminate contracts that underperform. Management of contracts has to be improved; Terms of contracts are to be improved. Negotiation for outsourcing contracts are to be improved. A viable feedback mechanism has to be created to facilitate communication between management, user departments, PMU and contractors, User departments allocate funds for paying contractors that can pay best performing contractors, User departments improve supervision of contractors, User departments improve support of contractors, management improves timely payments of contractors and terms of contracts are to be improved.