IMPACT OF OUTSOURCING ON ORGANISATIONAL PERFORMANCE

With the continuing increase in competitive pressures in both production and service organizations, the acceleration of customer’s satisfaction are increasing and extensive need improvement for productivity manager must have instantly the company’s survival in the market. The study therefore examined the effect of outsourcing on organizational performance. A simple random sampling technique was used for the study and the sample comprised a cross section of the staff of Access Bank, Keystone Bank, Guarantee Trust Bank, First Bank, and Polaris Bank,which located at Ibadan metropolis. Primary data for the study was obtained with the aid of questionnaire. Data were analyzed using simple percentage, frequency distribution through Statistical Package for Social Sciences (SPSS) and linear regression with correlation analysis was used in testing the research stated hypothesis. Findings revealed that outsourcing has positive impact on organisational efficiency, and that outsourcing has relationship with organisational effectiveness. The study concluded Businesses all over the world go as far as possible to acquire the necessary resources that they perceive would aid and enhance their business transactions and performance. The research recommends that organization managers should agree that successful outsourcing requires a shift in their mindset, which means that they should manage their outsourcing vendors and workers in order to improve on efficient product/service quality and as well as product/service delivery and the organization performance.