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Article Published In Vol.5 (May-June-2017)

Extent to which Cement Manufacturing Firms in Kenya Outsource Services

Pages : 659-662

Author : Mogere Kelvin Machuki

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Service outsourcing is a concept that has been widely adopted by many manufacturing firms in today’s world. Globalization has been the main reason of outsourcing. Companies have therefore worked tirelessly in order to find out new ways of running their business without losing track of their main reasons for existence. This has therefore prompted them to outsource services and this includes having their non-core functions being performed by third parties. Cement manufacturing firms namely:-Mombasa Cement Ltd, ARM Cement Ltd, Bamburi Cement Ltd, Savannah Cement Ltd, East African Portland Cement Company Ltd and National Cement Ltd., outsource their non-core functions which include:- security guard, laundry, cleaning, catering, transport and logistics, information technology and customer care services. This study therefore sought to establish the extent to which cement manufacturing companies in Kenya outsource services. The research used a descriptive research design. Primary data was collected using questionnaires and administered to 53 heads of department in the cement manufacturing firms in Kenya and sampled purposively. The data was analyzed using descriptive analysis (mean and standard deviation). The study established that cement manufacturing firms outsourced services to a greater extent in order to reduce their operating costs, concentrate on their main functions, increase quality and to improve response to the changing market demands

Keywords: Extent, Cement manufacturing firms, Outsourcing



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