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How Outsourcing Strategies can Effect Performance of Small and Medium-Scale Enterprises [Research]

How Outsourcing Strategies can Effect Performance of Small and Medium-Scale Enterprises [Research]


  • Several organizations have embarked on outsourcing strategies over the years but many still suffer in terms of their goal achievement; some have experienced low productivity both in terms of quality and quantity, their profitability has not been stable, and their capacities are grossly underutilized.
  • This research work determined the effect of outsourcing strategies (back-office activities, primary activities, accounting activities and supporting activities) on the performance of Small and Medium Scale Enterprises (SMEs).
  • Also, secondary data was sourced from the financial records of ten (10) selected SMEs. The variables were statistically analyzed using multiple regression technique.
  • This study recommended that SMEs should embark more on outsourcing strategies to attain the benefits of cost savings/restructuring which results in better customer service at profit.
  • Outsourcing process management through follow up steps like effective communication and monitoring should be employed and taken seriously to better reap the benefits of this maintenance/growth strategy. Also, SMEs should ensure that, the costs of managing the outsourcing process is not greater than the benefits generated by the outsourcing program.

Find out more by downloading your free copy of the
“Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs)

report from our Resources page here >

Report originally published by Journal of Global Entrepreneurship Research

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