Outsourcing Strategy and the Performance of Deposit Money Banks in North-Central, Nigeria

Abstract

This study on Impact of Outsourcing Strategy on the Performance of Deposit Money Banks in North-Central, Nigeria is written to examine the extent to which outsourcing strategy influences performance of Deposit Money Banks in North-Central, Nigeria. The study applied a descriptive research survey design. The population of the study was 879 thus; the researcher adopts Godden sample size statistical formula to obtain the view of respondents numbering 192 using structured questionnaire designed in a 5 points Likert scale. However, out of the total of 192 questionnaires distributed only 157 were duly completed and returned giving a retrieval rate of 82%. The analytical tools employed comprised descriptive and inferential statistics and hypotheses tested using multiple regression technique. Finding revealed that there is a significant positive relationship between Outsourcing strategy and performance of Deposit Money Banks in North- Central, Nigeria (r =0.440, p-value <0.05). Based on the finding, the study concludes that concluded that outsourcing strategy supports operations of Deposit Money Banks as it guarantees efficient services and also covers the weak aspect of the organization. Premised on the finding the study recommends that there is need for banks to outsource other weak aspects of business to experts rather than managing the areas as it will contribute to timely task attainment and quality service delivery. Bank Management should also compare hiring marketing staff and contracting marketing functions to agencies. The cost effective and positive results should be the basis for selection among other viable options. This measure will enhance the sustainability of banking operations in North-Central, Nigeria.