DETERMINANTS OF CUSTOMER SERVICE OUTSOURCING DECISION AMONG ORGANIZATIONS IN KENYA: A CASE OF ORANGE TELKOM KENYA LTD.
Esther Wanjiku Mburu - Master in Business Administration, Jomo Kenyatta University of Agriculture and Technology, Kenya
Dr. Gladys Rotich (PhD) - Jomo Kenyatta University of Agriculture and Technology, Kenya
ABSTRACT
The core idea behind decision to outsource was to benefit in some manner from allowing outside entities to take over the operation and management of a given function. Those benefits took many different forms. Often, the idea was to increase the bottom line of a company by reducing various operating expenses. At other times, the benefit has to do with having immediate access to professionals who specialize in handling the outsourced function, without the need to train personnel to take over those functions. The purpose of this study was to establish the determinants of customer service outsourcing decision at Orange Telkom Kenya Ltd. The study was guided by the following specific objectives; to determine the influence of cost as a determinant of customer service outsourcing decision in Orange Telkom Kenya Ltd., to determine the influence of customer satisfaction as a determinant of customer service outsourcing decision in Orange Telkom Kenya Ltd., establishing the influence of vendor capacity as a determinant of customer service outsourcing decision in Orange Telkom Kenya Ltd., to establish the influence of competitive strategies as a determinant of customer service outsourcing decision in Orange Telkom Kenya Ltd. The study employed a descriptive survey design. The target population of the study was 107 management employees of Orange Telkom Kenya Ltd. A sample size of 100 employees was drawn using a stratified random sampling. Primary data was utilized in this study which was collected using semi-structured questionnaire which comprised of both open and closed ended questions. Data analysis was both qualitatively and quantitatively analysed using the statistical package for social scientists (SPSS V20) for both descriptive and inferential statistics. Descriptive analysis included frequencies and percentages while inferential analysis involved the use of correlation analysis and regression analysis. The study established that cost has great influence on customer outsourcing decision in Telkom Kenya ltd. The study found that customer satisfaction influences customer outsourcing decision and that the business strategies influence customer service outsourcing in Telkom Kenya Ltd. The study also found that vendor capacity influences customer service outsourcing in Telkom Kenya Ltd. From the findings, the study concludes that cost, customer satisfaction has a positive influence on the customer outsourcing service in Telkom Kenya ltd. The study also concluded that vendor capacity has a positive influence on the customer outsourcing service in Telkom Kenya ltd. The study recommends that to add weight to this study, another study should be done to investigate the determinants of customer service outsourcing decision by other organizations such as network service provider companies like Airtel.
