Abstract: Outsourcing of some key functions and activities by organizations has increasingly played an important role in their productivity and performance. While some organizations look at outsourcing as the best way to enhance their organizational productivity and financial performance, others consider in-house production as the best option. This study is justified on the premise that outsourcing has become a trending phenomenon in corporate organizations all over the world. Many institutions in Rwanda in the private and public sector too have embraced this growing business phenomenon to deliver a wide array of products and services to enhance their organizational productivity and performance. This variance in the way outsourcing is looked at including diversified expectations from various sectors and institutions has created some academic degree of uncertainty, hence, the need to conduct a study to evaluate the impact that outsourcing decisions may have on the organizational performance. The general objective of this research is to determine the impact of outsourcing of specific and identified functions that would otherwise be carried out internally by the EUCL staff on the performance of the organization in pursuit of fulfilling its mandate and strategic objectives. The population of the proposed research will be 60 employees of the Energy Utility Corporation Limited working in various departments, units or sections. The study makes use of a survey questionnaire and an interview guide for collection of both qualitative and quantitative data. The study was collected by using questionnaire technique and both qualitative and quantitative data analysis used. The researcher used SPSS for data analysis. The overall significance of the regression estimation model. It indicates that the model is significant and explains the relationship between outsourcing and EUCL Performance at 5% level of significance. Results indicate that selling of electricity tokens is the most significant and explains EUCL Performance with a significance level is 0.000 which is less than a p-value of 0.05 and beta value is 0.724. When selling of electricity tokens increases by 1 unit keeping human Resource Functions and Generation Function constant, tokens would increase by 80.2%. The research findings show that outsourcing of some EUCL services has led to reduced operational costs and has also resulted in operational efficiency which translates to increased profits. It is recommended that EUCL should not be contended with the benefits and outsources more services as outsourcing of some services does not yield the expected benefits.
Title: IMPACT OF OUTSOURCING ON THE PERFORMANCE OF UTILITY COMPANIES IN RWANDA; A CASE OF ENERGY UTILITY CORPORATION LIMITED
Author: GERALD FRANCIS YEMUKAMA, Dr. PATRICK MULYUNGI
International Journal of Social Science and Humanities Research
ISSN 2348-3156 (Print), ISSN 2348-3164 (online)
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