Abstract: The purpose of the study was meant to analyze the factors influencing the implementation of outsourcing strategy in an organization. The general objective of this study was to establish the determinants of implementation of outsourcing strategy in public entities in Kenyan public sector: a case of Garissa Level Five Hospital. The specific objectives of the study were to evaluate the influence of competitive bidding on implementation of outsourcing strategy; examine the influence of procurement planning on implementation of outsourcing strategy; access the influence of lead time on implementation of outsourcing strategy and evaluate the influence of procurement procedures on implementation of outsourcing strategy. A census method was adopted were all the 40 staff involved in procurement department where issued with questionnaires. Data collection was analyzed using both descriptive and inferential statistical tools an SPSS version 22.0 was used to process the collected data which was then to be presented in form of tables. Correlation analysis was used to describe the strength of the linear relationship between the two variables. The findings of the study revealed that the research variables; competitive bidding, procurement planning, lead time and procurement procedures plays a significant influence on implementation of outsourcing strategy in Public entities. The study recommends that, organizations should adopt outsourcing s a strategic initiative to enhance competitiveness, performance and responsiveness of the various processes. The management should provide the required through monitoring and control of the quality of service delivery to realize the designed benefits of cost reduction, improved efficiency and customer satisfaction by effectively managing the contracted party. It is also recommends that management outsources process that exhibit high manpower costs and demonstrate inefficiency in the various levels of the value chain. These shall deliver cost leadership through effective contract management. It also recommends that outsourcing should not only be subjected to the traditionally non- core activities, but the whole of those activities that a third party van deliver at lower costs than can be done in house, with adequate management control on quality of delivery considering best selection method, good procurement planning, shortening the lead time and ensuring it follow the right procurement procedures put in place in order to achieve cost reduction and customer satisfaction.
Keywords: Outsourcing, Strategy, Competitive Bidding, Implementation.
Title: Influence of Competitive Bidding on Implementation of Outsourcing Strategy
Author: Hussein Yussuf Noor, Dr. Jane Omwenga
International Journal of Management and Commerce Innovations
ISSN 2348-7585 (Online)
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