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CHALLENGES OF OUTSOURCING STRATEGY BY MOBILE PHONE OPERATORS IN KENYA

This survey sought to establish the challenges of outsourcing strategy by mobile phone
operators in Kenya. The other objective was to determine the strategies employed in
outsourcing strategy. The research study is carried out on the mobile phone operators in
Kenya which include Telkom Kenya Limited, Safaricom Limited, Zain Kenya Limited, Essar
Telecom Kenya Limited, Flashcom Limited and Popote Wireless. The research study is
carried out to identify the challenges these operators face in outsourcing their services.
The research project was conducted by collecting primary data using an interview guide to
collect in-depth data from the members of the management team across all the departments.
The report contains in-depth analysis and interpretation of the data identifying the challenges
faced by these mobile telecommunication operators.
The findings reveal that despite the many benefits of outsourcing, there are as well
challenges. Outsourcing is an expensive business strategy. The cost of hiring professionals is
quit high and training staff to get more familiar with the outsourced service. The time delay
in service delivery poses a challenge in meeting customer needs. Government policies on
outsourcing, cultural and legal barriers all work against the success of a very great strategy in
business.
The recommendation is provided for further research works to be carried out. Cost is the
greatest challenge in outsourcing. If the cost of outsourcing is made cheaper the outsourcing
strategy will make businesses more profitable and increase on their market share. With the
recently laid fibre optic cable in Kenya, it is expected that communication will be much
cheaper, reducing the cost of doing business. An area for further study hence is the impact of
Fibre Optic cable on Outsourcing strategy. Further, a study can be carried out on the
Telecommunication industry as opposed to the Mobile phone and focus on the benefits and
challenges of outsourcing

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