FACTORS INFLUENCING OUTSOURCING OF FUNCTIONS AS EFFECTIVE MANAGEMENT STRATEGY BY TELECOMMUNICATIONS FIRMS IN NIGERIA

Purpose: With the fierce competition in the global market, outsourcing is seen as one of the management strategies and major avenues for many firms to improve their competitiveness. Telecommunications firms have therefore used this model to achieve some critical telecommunications infrastructures. As such, this study identified, assessed and categorised into a smaller number of groups the factors influencing outsourcing of functions as effective management strategy by telecommunications firms in Nigeria.

Design/methodology/approach: The study used the survey research design. A two-stage sampling procedure was used for the study. Firstly, the telecommunications firms that took part in the study was selected using a stratified random sampling and secondly, the employees of these selected firms who are directly involved with outsourcing of functions were selected using the random sampling approach. In all, a total of one hundred and eighty (180) copies of questionnaire were administered and of this number, fifty-three (53) respondents returned complete copies of questionnaire. This study identified 18 factors influencing outsourcing of functions.

Findings: The results show that all the factors identified have means greater than 3 which shows that majority of the respondents agree that those factors are the ones actually influencing outsourcing of functions by telecommunications firms in Nigeria. 'Lower costs', and 'allow resources to focus on core business function' are rated very high as the factors influencing outsourcing of functions. Through the use of factor analysis technique, these factors were reduced and grouped into a smaller number with the dictates of what is obtainable in telecommunications firms in Nigeria. These groups are 'cost and flexibility related factors', 'quality and time related factors', 'allow resources to focus on core competency factors', and 'innovation related factors'.

Originality/value: The study concluded that the research is illuminating in the sense that it reveals more regarding the identification, categorisation/grouping of the factors influencing outsourcing of functions by telecommunications firms in Nigeria.