Strategic Outsourcing and Corporate Performance in Nigerian Banking Industry

Abstract

This study examined strategic outsourcing and corporate performance of commercial banks in Nigeria. The decision to outsource is driven by the perception of management on how organization can achieve corporate effectiveness and efficiency with outsourcing strategy. This study specifically focused on two objectives; to investigate the relationship between strategic outsourcing and corporate performance and to ascertain the correlation between recruitment outsourcing and corporate performance. The study used a total number of twenty two (22) commercial banks listed in the Nigerian Stock Exchange (NSE) as at 31st January 2021 in its study. Primary data were collected from the population of the study with the aid of structured questionnaire and data were analyzed through descriptive statistics and the two hypotheses formulated were tested by Pearson Product Moment Correlation (PPMC) with the use of Statistical Package for Social Science (SPSS). The results of the study revealed a significant positive relationship between strategic outsourcing and corporate performance and a significant positive relationship between recruitment outsourcing and corporate performance. The study concluded that strategic outsourcing and recruitment outsourcing have positive relationship with corporate performance. The study, therefore, recommends that corporate organizations that want to achieve significant performance in their operations should outsource some of their activities that are outside its core competence.