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ABSTRACT
Outsourcing as a strategic management tool that involve contracting a section of a company to a third party while organizational performance comprises the actual output or results of an organization as measured against its intended outputs. The purpose of the study was to examine the effects of outsourcing on organizational performance in fresco Plc. The study employed survey research design method with a population of 60 senior staff from the grade of manager. primary data was used with a structured questionnaire. Data were analyzed with tables, and hypothesis tested with percentages and Chi-square. The result revealed that outsourcing has a significant positive effect on organizational performance of fresco Plc with Chi -square computed value of 36.92 and Chi-square critical value at 0.9% of 1.064, outsourcing cost positively affects organizational performance of Presco Plc with Chi-square computed value of 17.63 and Chi-square critical value at 0.9% of 1.064 and outsourcing has significant positive benefits on organizational performance of Presco Plc with Chi-square computed value of 17.47 and chi-square critical value at 0.9% of 1.064. On the basis of the findings of’ the study the research therefore conclude that outsourcing positively affects the performance of organizations and that outsourcing cost positively affects organizational performance. Therefore the study recommended when organizations outsource they should have measurable indicators in form of Key Performance Indicators (KPI) for the service provider so as to enjoy the positive impact of outsourcing.
words count: 237
keywords: outsourcing, organizational performance, outsource cost.