Outsourcing of Non-core Functions in the Halls of Residence at the University of Cape Coast: Prospects and Challenges

Abstract

In today’s rapidly evolving global market space with growing consumer needs and fierce competition, outsourcing of services is often seen as a tool organizations use to manage resources and capabilities efficiently to maximize gains and performance. The areas under study were the six traditional halls of residence at the University of Cape Coast: VALCO, Oguaa, Nkrumah, Casley Hayford, Atlantic and Adehye Halls. The approach was purely qualitative with a purposive sampling technique. In-depth interviews were conducted with 18 office bearers in the six halls of residence. The purpose of this study is to assess the prospects and challenges of outsourcing at the University of Cape Coast. Therefore, we examined how outsourcing impacts operational strategy, especially on the goals of operations related to cost reduction, improved quality, flexibility and better service. Our findings show that managers of the students’ Halls of Residence believe that outsourcing has great potential not only for cost reduction but also has an impact on other operational objectives that make outsourcing more strategic. Another finding from the study indicates that outsourcing could significantly affect organizational performance, which empirically corroborates aspects that have only been theoretically analyzed previously. From the study, it is found that outsourcing would only make sense if it exerts a positive influence on the various goals of operations and halls of residence performance. It was recommended that, with the great benefit to be derived from the outsourcing mechanism, it should be kept in mind by the policy implementors that it can be implemented shortly.