Abstract:
The study was about the outsourcing services and value for money achievement in
public institution, taking a case study of Moshi Cooperative University. The study
covered four objectives which included; to determine factors influenced Moshi
cooperative University to engage into outsourcing of the services, to examine the
contribution of outsourcing proceedings towards value for money achievement, to
establish the extent to which outsourcing of services has reduced operational costs
towards the achievement of value for money and improve the institutional efficiency,
to establish the extent to which outsourcing of services has improved the institutional
efficiency towards the achievement of value for money.
The study was carried out using case study design with the application of both
qualitative and quantitative techniques. The study involved 40 respondents from
Moshi Cooperative University and the model tool used to analyse data was Statistical
Package for Social Sciences (SPSS).
The study findings indicated that, desire to reduce cost, and the need to free up
organization resources so as to focus on their core activities were the substantial
factor that influences the organization to seek outsourcing services. Outsourcing
services has reduced operational costs and improved institutional efficiency whereby;
through reduced internal head count, while responsiveness to client was the major
factor that contributed to quality of customer service in outsourcing hence value for
money achievement.
The study recommended that there should be systematic way of sharing information
among the public organization that would assist to maintain vendor-organization
relationship in order to maintain pricing and quality of work also it was
recommended that the University should set strategies of managing the outsourcing
contracts against the actual implementation. There should be special team assigned to
monitor, evaluate, and report on the performance of the service provider so as to
ensure that the contract terms are followed and quality service is obtained
