Outsourcing services and value for money achievement In public institutions:

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