A Dissertation submitted in Partial fulfillment of the requirements for the Award of the Masters of Science in Procurement and Supply Chain of
Mzumbe University
The foremost interest of this thesis was on understanding the influencing factors of an outsourcing decision of a procuring entity. In order to reach this objective, the factors: need to specialize, cost saving need, a need to reach projects deadlines and resource shortage were studied to see how they influence a buying decision of a procuring entity. The scope of this study covered only the procuring entities which are found in Dar es Salaam region. This study relied on a survey questions administered through a questionnaire to the members of these procuring entities who including procurement unit members, members of the tender board, and different user departments. The data was reduced by using principal component analysis and the retained variables were regressed by using multiple regression analysis through a software called the Statistical Package for Social Sciences version 23. The results of the analysis indicated that there was no statistical significance between a procuring entity’s need to specialize and it decision to outsource. The results also showed that there was a statistically significant relationship between a procuring entity’s cost saving effort on its decision to outsource. Furthermore, the results exhibited a statistically significant relationship between a procuring entity’s need to meet projects deadlines and its decision to outsource. Finally the results showed that the variable resource sharing did not significantly influence a procuring entity’s decision to outsource. The idea of public sector restructuring at 1990’s was to make sure government resources are used cautiously while the government and public sector concentrate on provision of core services and enlighten their burden. This study draws attention into significant areas; how effective are outsourced services in the overall of quality services delivery in public sector but on the other hand, it underpins the primary purpose of the government to ensure quality delivering of outsourced services through strict mechanism of evaluation and systematic performance measures.