Re-strengthening the Adoption of Outsourcing Concept in Construction Firms: Issues and Challenges

Abstract

Outsourcing is a concept that has gained ground instead of the dynamic nature of materials and construction resources over time, there is still yearning for resource augmentation, thus the need for this study. The course’s primary aim is to study issues and challenges of outsourcing in construction firms with a view to enhancing materials and human resources usage. The survey research method was used in researching. In contrast, the random sampling method was used by the authors in the sample selection. The population sample for the study is infinite since while the Cohran formula was used to generate the sample size of 100. The authors used one hundred (100) samples for the study with questionnaire designed the Likert scale 1-5. The following parameters were censored and profiled. They include: understanding the current state of outsourcing in the construction sector, scope, and coverage of outsourcing, and the relationship between outsourcing strategy and performance helps examine the prospective areas that would warrant outsourcing and the possible outsourcing framework—the tools used in processing the data; relative mean, simple percentage, mean index. Some of the findings of the study include among other things: challenges that firms encounter in outsourcing their activities from the responses that the main challenges that the bank faced in outsourcing its included increase in cost and loss of managerial control over outsourced operations, the effect on the quality of operations of the firms, security and confidentially, and relocation of existing employees. The study recommends effective training of personnel, introduction of incentives and motivation factors in enhancing employees’ performance as a way out of challenges that confronts outsourcing. Also, casual labouring system should be abolished since it is counterproductive in conventional production environment.