Assessment of the relationship between outsourcing and organization’s financial performance in Igara Growers Tea Factory in Bushenyi District.

Abstract

This study examined the relationship between outsourcing and organization’s financial performance in Igara Growers Tea Factory in Bushenyi District. A conceptual framework was developed relating outsourcing functions and indicators of financial performance. This research findings will be employed by government agencies, private sector foundations for example Uganda National Chamber of Commerce among others to evaluate the role of outsourcing on financial performance. The results will also help business stakeholders on how to attach financial performance to the decision to outsource and finally the study will help future researchers as a source of references on a similar studies. Simple random and purposive sampling techniques were used to select the respondents. Cross sectional and descriptive research designs were used in the study to collect data from the field. Qualitative and quantitative approaches were also used. Pearson's linear correlation coefficient was used to determine the relationship between outsourcing and financial performance of the factory. The researcher found out that outsourcing and organization’s financial performances are “two sisters of the same blood” they are closely related. This is based on various factors. The researcher found out that outsourcing promotes the volume of sales of Igara Grower’s Tea factory and increased sales go hand in hand with profitability. In conclusion, when outsourcing is done; the financial performance of the origination improves. Likewise when the organization’s financial performance improves it enables the organization to do outsourcing because then it has the financial capacity to meet outsourcing obligations. Keywords: Assessment, relationship, outsourcing, financial performances, Igara Growers and Tea Factory