Outsourcing and performance of banks in Nigeria

xiv,185p

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Egile nagusia: Sanusi, Bolanle Mistura
Formatua: Thesis
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Argitaratua: Obafemi Awolowo University 2019
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Sarrera elektronikoa:https://ir.oauife.edu.ng/handle/123456789/3885
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author_facet Sanusi, Bolanle Mistura
author_sort Sanusi, Bolanle Mistura
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publisher Obafemi Awolowo University
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spelling oai:ir.oauife.edu.ng:123456789-38852023-05-13T11:31:57Z Outsourcing and performance of banks in Nigeria Sanusi, Bolanle Mistura Outsourcing Nigeria Stock Exchange Nigeria Banks performance Nigerian banks Banking industry Nigerian banking industry Service outsourcing Outsourcing activities Outsourcing challenges xiv,185p This study examined the services outsourced in the Nigerian banking industry and analysed the factors influencing outsourcing decisions in the industry. It also assessed the perceived benefits and risks of outsourcing activities of banks; and examined the effects of outsourcing activities on banks’ performance in Nigeria. Furthermore, it investigated the challenges facing outsourcing in the industry. These were with a view to providing information on the extent to which banks engage in outsourcing; and on how outsourcing would contribute to banks’ efficiency and performance in Nigeria Primary and secondary data were used for the study. The primary data were sourced through administration of structured questionnaire to selected employees of 20 out of 22 post- consolidated banks in Nigeria. The banks selected were those having their headquarters based in Lagos. Questionnaire was administered on four categories of people in the selected banks, namely: the management; non-management and outsourced staff; as well as vendors of the outsourced activities. Eight respondents were purposively selected from each of management, non-management and outsourced staff while six respondents were selected from the vendors of the outsourced activities. On the whole, 30 respondents were purposively selected from each of the 20 post-consolidated banks. In-depth interview was conducted on one management staff each from the banks. In all, 620 respondents were used for the study; 600 for the questionnaire administration and 20 for the conduct of in-depth interviews. Secondary data on variables such as size, cost, profitability were also collected from the Nigeria Stock Exchange (NSE) Fact book. Data collected were analyzed using content analysis, descriptive and inferential statistics. The result showed that the services outsourced in the Nigerian banking industry included security (87%); cleaning (75.4%); recruitment and training (71%); Automated Teller Machine (ATM); Information Technology (IT) units (50.6%); and marketing and promotion (20.9%). The results also showed that the factors influencing outsourcing decisions in the industry included bank size (t = 6.32, p < 0.05); cost (t = 2.67, p < 0.05); and profitability (t = -0.28, p > 0.05) The results further revealed that core competencies (95.8%); reduction in staff headcount/size (94.8%); curtailing and preventing industrial disputes (90%); cost reduction (89.8%); and reduction in managers’ burden and meeting targets (78.3%) were the perceived benefits. In addition, inadequate expertise to oversee the service providers (42.6%); poor supplier leading to additional cost (26.6%); and suppliers’ failure that might damage the reputation of the banks (22.2%) were the perceived risks associated with outsourcing in the banking industry. Furthermore, the results showed that outsourcing activities had positive significant effect (t = 9.02; p < 0.05) on banks’ performance in Nigeria. Finally, the results revealed that the challenges facing outsourcing in the Nigerian banking included failure to adhere to quality requirements and specification (34.2%); increase in the cost of outsourcing administration and provision (28%); dilution of control (26.2%); poor structure to manage the outsourcing functions well (15.6%); and poor planning (14.8%). The study concluded that Nigerian banks’ engagement in outsourcing activities had contributed significantly to their overall performance in Nigeria. 2019-02-08T14:19:00Z 2019-02-08T14:19:00Z 2015 Thesis Sanusi, B.M. (2015). Outsourcing and performance of banks in Nigeria https://ir.oauife.edu.ng/handle/123456789/3885 en application/pdf Obafemi Awolowo University
spellingShingle Outsourcing
Nigeria Stock Exchange
Nigeria
Banks performance
Nigerian banks
Banking industry
Nigerian banking industry
Service outsourcing
Outsourcing activities
Outsourcing challenges
Sanusi, Bolanle Mistura
Outsourcing and performance of banks in Nigeria
title Outsourcing and performance of banks in Nigeria
title_full Outsourcing and performance of banks in Nigeria
title_fullStr Outsourcing and performance of banks in Nigeria
title_full_unstemmed Outsourcing and performance of banks in Nigeria
title_short Outsourcing and performance of banks in Nigeria
title_sort outsourcing and performance of banks in nigeria
topic Outsourcing
Nigeria Stock Exchange
Nigeria
Banks performance
Nigerian banks
Banking industry
Nigerian banking industry
Service outsourcing
Outsourcing activities
Outsourcing challenges
url https://ir.oauife.edu.ng/handle/123456789/3885
work_keys_str_mv AT sanusibolanlemistura outsourcingandperformanceofbanksinnigeria