Back-office Activities Research Articles

Operational Outsourcing Practices and Organizational Performance of Telecommunication Companies in Rwanda: A Case of Airtel Rwanda Plc

This study assessed effect of operational outsourcing practices on organizational performance in telecommunication companies in Rwanda with reference to a case of Airtel Rwanda Plc. The specific objectives are to determine effect of primary activities outsourcing, accounting and finance activities, back-office outsourcing on organizational performance of Airtel Rwanda Plc. The study adopted Resource-Based Theory, Transaction Cost Economic Models. The researcher employed descriptive research design and correlational research design to establish effect size for specific research objectives. The researcher drew a sample of 167 from 287 individuals using Yamane formula. The study used both simple random sampling and purpose sampling to choose respondents. The researcher collected information using questionnaire, interview guide and desk review from organizational reports. The researcher employed a descriptive and statistics for quantitative data analysis while qualitative data was analyzed using content analysis. Findings on outsourcing primary activities indicate strategic management at a mean of 4.333, service development at a mean of 3.666, and operational services at a mean of 4.000 were outsourced as primary activities. For strategic management, there was a positive insignificant relationship between strategic management and cost efficiency (=0.049, p=0.41), strategic management and profitability(r=0.074, p-value=0.233). A significant relationship was between cost leadership and sales (r=0.231**, p value=0.006), rising investment (r=0.159**, p-value=0.043), with net profit (r=0.174**=0.014). Results on outsourcing accounting and finance demonstrated a mean of 3.33, human resources with a mean of 4.400, data resources with a mean of 4.00 were adopted by Airtel Rwanda Plc. There are significant correlations found between finance and accounting and cost efficiency (r=0.215, p-value=0.048), accounting and profitability (r=0.512, p-value=0.036). Human resources were insignificantly associated with cost efficiency. There is a significant correlation found between information resources and cost efficiency (-0.523*, p-value=0.031). Results found that outsourcing security activities (mean of 3.833). Outsourcing manpower activities (mean of 3.333), outsourcing cleaning activities (mean of 2.833) were adopted. Significant correlations were established outsourcing security activities and cost efficiency (r=.167*, p=.078), outsourcing security activities and productivity (r=0.393, p-value=0.000), profitability (r=0.560*, p-value=0.056). Outsourcing manpower activities was negatively associated with cost efficiency) r=.050*, p=.078), and productivity (r=-159*, p=.093). The researcher recommended the need to rely on primary activities, and to revise its policies. The firm should adopt back-office activities outsourcing to increase flexibility and reduce weaknesses, which can be an appropriate outsourcing activities. Keywords: Accounting and Finance Outsourcing, Back Office Outsourcing, Operational Outsourcing, Organizational Performance.

Exploring the Cloud Computing Implementation Drivers for Sustainable Construction Projects—A Structural Equation Modeling Approach

Sustainability aspects should be adopted during all the decision-making stages of executing construction projects to gain maximum benefits without compromising the objective of such projects. Cloud computing has been a valuable tool for sustainable construction success in several countries over the last two decades. Cloud computing and its drivers have undoubtedly improved the sustainable success target of cost, quality, and time. However, cloud computing implementation in Nigeria’s construction industry is minimal. Consequently, the study aims to generate a decision support model to support a cloud computing implementation by looking into the relationship between cloud computing drivers and construction activities in Nigeria. This study’s data was obtained from previous literature and quantitatively augmented with a questionnaire survey. The data was obtained from questionnaires administered to one hundred and four construction practitioners in Lagos State. Thus, exploratory factor analysis (EFA) was used to validate the questionnaire survey results. However, to assess and validate the factors (drivers) constructed and analyze the relationships between cloud computing drivers and construction activities, partial least square structural equation modelling (PLS-SEM) method was used. An analysis of construction project activities was carried out through EFA, and it generated five main components: pre-contract stage, management, design and storage, estimation and communications, and finally, back-office activities. The study indicated that the implementation of cloud computing drivers had a significant impact on construction activities. The findings also revealed a weak relationship between cloud computing implementation and construction activities, with a 0.087 percent impact. Furthermore, the findings indicate that human satisfaction is the primary factor influencing cloud computing deployment, followed by organization, client acceptance, and industry-based factors. The significance of the findings can be used as a reference or standard for decision-makers to base their decisions on the cost efficiency of cloud computing and its capability to boost efficiency in the construction sector. This research contributes to current construction engineering management by enhancing knowledge of cloud computing implementation drivers and their implications on construction activities.

Causes and Effects of Processes’ Complexity in Public Institutions: Some Experiences from Italian Universities

This paper addresses the issue of complexity in the administrative processes in public institutions; in particular, accounting routines and processes are examined. Back-office activities, although having a merely supporting role in the delivery of public services, are often quite complex and use a significant amount of public institutions’ resources. However, the literature reveals a scarce use of accounting data by politicians and citizens. While the relation between complexity and costs has been the subject of major research in the business world, this issue is still unexplored with regard to the administrative processes of public institutions. This paper is based on an in-depth analysis of two cases in the higher education sector.

The Simplification of Public Administration: A Managerial Perspective

Abstract The paper addresses the issue of complexity in the administrative processes of public institutions: in particular, accounting routines and processes are examined. Back-office activities, although having a mere supporting role in the delivery of public services, absorb a relevant part of the resources of public institutions. The aim of the paper is to analyse the factors that contribute to the enhancement of complexity of these activities. The paper is based on an in-depth analysis of two Italian public organisations: a university and an ASP (agency for services to persons). Italy is an interesting context since simplification policies have been adopted in the country at central government level and in specific sectors of public administration, however, at the institutional level, simplification initiatives depend on the initiative of the single organisation. The cases described in this paper show that complexity stems from the need for inspectory controls (which is typical of the law) as well as from the volume of information requested (which is typical of management studies) for different stakeholders and at different, yet correlated, levels. The paper suggests that public management scholars have the opportunity and the burden of a contribution in this field.

Exploring the benefits of cloud computing for sustainable construction in Nigeria

PurposeCloud computing is one of the digitalization principles used in some sectors like banking, health and construction industry. This paper aims to examine the benefits of applying cloud computing for construction sustainability in Nigeria.Design/methodology/approachThe cloud computing benefits-related data were retrieved from previous studies and complemented with a questionnaire survey to obtain data from stakeholders involved in the execution of construction projects in Lagos State, Nigeria, through a convenient sampling technique. In addition, the relative importance index (RII) technique was used to investigate the acquired data. At the same time, analysis was accomplished using exploratory factor analysis (EFA). Findings indicated that numerous benefits could be derived by adopting cloud computing in the Nigerian construction industry.FindingsThe findings from RII analysis showed the significant benefits of data storage ubiquity (i.e. location independence), high situational awareness, team collaboration, compatibility with advanced production facilities and improved project planning. Furthermore, the analysis of these benefits was conducted using EFA for the four construction maxims: construction productivity, back-office activities, design management and billing.Originality/valueThis research illustrated the benefits of cloud computing in achieving a successful construction project. Besides, these findings are not only useful for achieving sustainable construction in Nigeria but also applicable to many developing countries.

Outsourcing and Organizational Performance: A Comparative Analysis of Nigeria Bottling Company Plant and Camela Vegetable Oil Company, Owerri, Imo State, Nigeria

Achievement of organizations’ already set out goals and the level of attainment of those goals measure how successful the organizations are. They seek numerous strategies to help them in this quest. One of such strategies is outsourcing. Outsourcing is a management strategy where an organization delegates her major non-core functions to a specialized and efficient service provider enabling her to save both time and money. This research took a holistic look at outsourcing as a strategy and its effect on organizational performance using Nigeria Bottling Company Plant and Camela Vegetable Oil Company both situated in Owerri, Imo State as focal points. Core competency theory was used as theoretical framework. The survey research design was used, utilizing questionnaire and interviews as instruments of primary data collection. Library research was source of secondary data used for the analytical discussion. It was observed that outsourcing back office, primary and support activities have significant positive effect on organizational performance. The research therefore, recommends outsourcing as a strategy for improved performance in organizations. Key words: Outsourcing, Organizational performance, Back office activities, Primary activities, Support activities, Core competency theory DOI: 10.7176/RHSS/10-12-09 Publication date: June 30th 2020

A Study of Accounting Outsourcing Decision: The Case of Malaysian SMEs

Nowadays the costs of doing business have been increased and become more competitive than before. Hence, many organizations have been thinking to outsource activities which are not the core competence of the organization such as finance and accounting, information technology, human resources, and any other back-office activities. This research provides an understanding of the factors influencing of the organization intends to outsource the finance and accounting activities decision for the Small and Medium Enterprises (SMEs) in Malaysia. The research uses a qualitative exploratory and explanatory method. The qualitative data collected via individual interviews with Malaysia Small and Medium Enterprises’ decision makers and a higher level of management group which comprises of individual or organizations. The results suggest that Malaysian SMEs would shorten their decision-making process to make a business process outsource if they can see the success story of other organizations.

Effect of outsourcing strategies on the performance of small and medium scale enterprises (SMEs)

Several organizations have embarked on outsourcing strategies over the years but many still suffer in terms of their goal achievement; some have experienced low productivity both in terms of quality and quantity, their profitability has not been stable, and their capacities are grossly underutilized. This research work determined the effect of outsourcing strategies (back office activities, primary activities, accounting activities and supporting activities) on the performance of Small and Medium Scale Enterprises (SMEs). Survey research design was adopted in Benue State, Nigeria. Stratified random sampling technique was used in selecting respondents for a primary source data gotten through a well-designed and self-administered questionnaire. Also, secondary data was sourced from the financial records of ten (10) selected SMEs. The variables were statistically analyzed using multiple regression technique. At the end of the research, the study found that; outsourcing of back office activities (such as bookkeeping, payroll, billing, order processing, payment processing, cleaning services, security services and other administrative activities); outsourcing of primary activities (such as manufacturing, purchases, warehousing, Sales force and customer service); outsourcing of Supporting activities(such as shipping, IT services/system, training, advertising, legal services, transport services, public relations) has a significant effect on organizational profitability of SMEs whereas, outsourcing of accounting activities(such as financial reporting, tax processing) has no significant effect on performance of SMEs. This study therefore recommended that SMEs should embark more on outsourcing strategies to attain the benefits of cost savings/restructuring which results in better customer service at profit; also, outsourcing process management through follow up steps like effective communication and monitoring should be employed and taken seriously to better reap the benefits of this maintenance/growth strategy. Also, SMEs should ensure that, the costs of managing the outsourcing process is not greater than the benefits generated by the outsourcing program.

Understanding lean & safety projects: analysis of case studies

Facing the current socio-economic contingency while guaranteeing a high level of care quality is particularly challenging in the field of healthcare. Through an integrated adoption of emerging managerial solutions, projects that allow organizations to achieve both efficiency and patient safety improvements could be implemented, thereby transposing policy directives towards a safer and more sustainable healthcare system. Therefore, the purpose of this paper is to investigate the features of Lean & Safety (L&S) projects. Three Health Lean Management (HLM) projects that had unexpected patient safety results were selected from the same region. Differences and similarities among the cases have been highlighted and interesting points of evidence have been noted. Despite the fact that the projects were pursuing similar objectives and benefiting from comparable support, the obtained changes had direct impact on patient safety enhancement in the cases that involved the front-office processes, and an indirect impact on patient safely for the L&S project that focused on back-office activities. The implementation processes and the Information and Communication Technologies (ICT) adoption of the cases are also different.

Designing Lean Processes With Improved Service Quality: An Application in Financial Services

In this study, the authors focus on how service providers can meet rising customer value expectations through service process designs that are not only lean but also with high service quality. The authors consider two design approaches: one with separate (decoupled) front-office and back-office operations and one that integrates the front-office and back-office operations with a combined workforce. They develop a decision support framework to compare these two approaches in terms of both cost and service level. The integrated design approach, based on a constant staffing model, takes a systems perspective to designing the service delivery process, thereby creating opportunities to share employee resources between front-office and back-office activities due to their differing time sensitivities.Using data from a community bank case study, the authors find that the integrated design is both leaner and has a higher service level than the decoupled design. Simulation results over various scenarios confirm that the integrated design achieves better performance than the decoupled design over a wide range of parameters found in services with both front-office and back-office operations, although the decoupled design is better for some settings. This suggests that the authors' decision support tool can help service providers design lean service processes with improved service quality tailored to their own operating environments.

The impact of name change on the financial performance of savings and credit co-operatives in Kenya

PurposeThis paper aims to investigate the impact of name change, if any on the financial performance of deposit-taking savings and credit co-operatives (SACCOs) in a developing country characterized by a vibrant SACCO sector. Sparse studies exist on the impact of name changes on revenue-cost performance in mutual financial institutions such as SACCOs.Design/methodology/approachThe study uses a standard event methodology over a six-year period (2008-2013) to investigate the impact of name change on the return on assets (ROA) and operating profit margin (OPM). The study then uses a panel regression method to study the impact of name change on ROA and OPM for a sample of 212 deposit-taking SACCOs over the period 2008-2013.FindingsThe results, which are robust for a variety of controls, provide evidence in support of a consistent positive association between name change and subsequent financial performance of deposit-taking SACCOs in Kenya. The positive impact of name change seems to be experienced about four years after the name change. The results reveal muted influence of regulation on name change and financial performance of SACCOs in Kenya.Research limitations/implicationsThe study focuses solely on deposit-taking SACCOs in a developing country context over a six-year period only. Extending the time period and including a sample of control SACCOs operating purely back-office service activities would add power to the analyses.Practical implicationsThe current study illustrates the contribution of name change on the financial performance of SACCOs in a developing country characterized by a vibrant SACCO sector. Overall, the results show that name change announcements signal an improvement in SACCOs’ future prospects.Originality/valueThis study provides empirical evidence on the contribution of name change announcements on the financial performance of SACCOs in a developing country context. The study adds to the sparse literature on the impact of name change on the financial performance of mutual financial institutions that are not listed on the securities exchange.

„Biblioteka na fali”. Technologie radiowe w bibliotekach

Teza/cel artykułu – W artykule poruszono zagadnienie zastosowań technologii radiowych w bibliotekach, zarówno w zakresie telekomunikacji bezprzewodowej (technologie sieciowe), jak np.: Wi-Fi czy WiMAX, jak również w obszarze urządzeń bliskiego zasięgu, jak np. współpracujące urządzenia zarządzania danymi personalnymi. Przedstawiono też bezprzewodowe systemy pozatelekomunikacyjne, działające w ramach pasma ISM (Industrial, Scientific and Medical radio band). W ostatnich latach do bibliotek wkroczyła nowa, bezprzewodowa technologia zaliczana do urządzeń bliskiego zasięgu – tzw. identyfikacja radiowa, tj. RFID – Radio Frequency Identification, która zmienia i optymalizuje ich działanie w zakresie organizacji i kontroli zbiorów, procesów wypożyczeń oraz zwrotów. Pojawienie się w tym zakresie normy ISO 28560 – Information and documentation – RFID in libraries wytycza nowy etap automatyzacji bibliotek. Rozwinięciem technologii RFID są też nowe technologie takie jak NFC – Near-Field Communication) oraz tzw. Internet przedmiotów (Internet of Things - IoT), które w najbliższym czasie mogą mieć szerokie zastosowanie w świecie bibliotek, szczególnie w powiązaniu z technologiami mobilnymi. Metody badań – Problematykę zastosowania technologii radiowych w bibliotece przedstawiono na podstawie polskiej i obcej literatury przedmiotu, jak również na postawie obserwacji własnych oraz informacji uzyskanych na konferencjach, wystawach międzynarodowych oraz prezentacjach organizowanych przez firmy. Wyniki i wnioski – Zastosowanie technologii radiowych w bibliotekach okazuje się bardzo przydatne. W najbliższej przyszłości technologie te dostarczą bibliotekom nowych narzędzi i nowych możliwości w zakresie rozwoju usług dla użytkowników, jak i w zakresie usprawnienia pracy bibliotekarzy. Do tej pory biblioteki dość ostrożnie stosowały nowe technologie komunikacyjne. Jednak wobec rosnącej presji związanej z koniecznością wprowadzania sprawniejszych metod pracy będą one jednak musiały wdrażać innowacyjne rozwiązania, co spowoduje potrzebę zastosowania szybkich technologii radiowych.

Front-office/back-office configurations and operational performance in complex health services

Background: Acquired brain injury (ABI) occurs from various causes at different ages and leads to many different types of healthcare needs. Several Dutch ABI-networks installed a local co-ordination and contact point (CCP) which functions as a central and easily accessible service for people to consult when they have questions related to ABI.Goals: To explore the relationship between front/back office design and operational performance by investigating the particular enquiry service provided by different CCPs for people affected by an ABI.Methods: In-depth interviews with 14 FO/BO employees from three case organizations, complemented with information from desk research and three one-day field visits.Results: The CCPs applied different FO/BO configurations in terms of customer contact and in terms of grouping of front and/or back office activities into tasks for one employee.Discussion: It is the complexity of the enquiry that determines which approach is more appropriate. For complex enquiries, the level of decoupling is high in all CCPs. This allows multiple experts to be involved in the process. For regular enquiries, CCPs have a choice: either working in the same way as in the complex enquiries or coupling FO/BO activities to be able to serve clients faster and without handovers.

Privatization of agricultural extension services in the EU: Towards a lack of adequate knowledge for small-scale farms?

Small-scale farming involves millions of households in the EU and plays an important role in the rural economy. A significant percentage of these farms produce commodities for the market. This productive dimension is often overlooked, however, as is the technical support needed by these farms. The privatization of national farm advisory systems (NFAS) has an impact on small-scale farming that should be better assessed. This paper, which looks at the characteristics of intangible services, helps demonstrate how the privatization of advisory services may have unexpected adverse effects on small farms. The dismantling of coordinating authorities has made these farms less visible as a target client. Less direct interaction with advisors makes it more difficult to co-produce knowledge that is relevant to their needs. In addition, back office activities such as scientific monitoring, building and updating databases and scientific experiments have been restructured in a way which does not support their interests.

A Critical Study of the Indian Regulatory Environment for Emerging IT Sectors

The Indian software sector has undergone a paradigm shift over the last three years. Outsourcing of critical non-core operational and backoffice activities by companies worldwide to Indian players has been a dominant feature in this dynamic landscape. The primary aim of this study is to look at factors constraining growth in the emerging landscape of the Business Process Outsourcing space in India.

Offshoring strategies: evolving captive center models

In todays globalized economy, firms often consider offshoring when confronted by rising costs and fierce competition. One mode of offshoring has continued to grow despite the current global economic turmoil: the captive center. Captive centers are offshore subsidiaries or branch offices that provide the parent company with services, usually in the form of back-office activities. In Offshoring Strategies, Ilan Oshri examines the evolution of the captive center. He identifies basic captive center models, examines the captive center strategies pursued by Fortune Global 250 firms, describes current captive center trends, and offers detailed individual case studies that illustrate each model. His analysis highlights the strategic paths available to firms that want to maximize the returns offered by captive centers. Oshri outlines six models for captive centers that range from the basic wholly owned branch office to hybrids and joint ventures and identifies evolutionary paths along which the basic model develops. He analyzes firms strategies during initial set-up, then tracks the changes as strategies evolve to meet different business needs. The case studies, all based on the Fortune Global 250, include the development of a basic captive unit into a complex hybrid structure; the evolution of a captive center into a shared service center offering services to other international firms; the divestment of a captive center to a private equity firm; and the migration of a captive center to a location where costs were lower.

Open Source Software Governance Serving Technological Agility

The development of open source software is currently arousing increasing interest in the IT world. This research inquires some specific paths enlarging the traditional view over open source software in inquiring the US Department of Defense (DoD) and the dynamics associated its front- and back-office activities. We explain how distinguishing basic administration from operational constraints and weapon R&D dynamics introduces specific governance concerns among public and private stakeholders. By no longer defining open source solutions as mere goods, but as services characterized by a flow of knowledge, we particularly highlight new emerging strategies of technological acquisition. Our analysis leads to revise the traditional role focusing mainly on cost issues and introduces open source software with distinctive properties serving the management of innovation and technological agility at the level of complex systems, exemplified here with the constraints associated to weapon systems and the Network centric warfare doctrine

Outsourcing payments transaction processing in a SEPA environment

Intensifying market and price pressure forces banks to evaluate all options to reduce costs while at the same time extending their services and improving their service levels. To achieve these objectives, the outsourcing of back-office activities to industrial full-service providers is an important strategic option. In the area of payment transaction processing, the introduction of the single euro payments area (SEPA) is a trigger point forcing banks to take a decision soon about outsourcing — or make significant investments in order to upgrade their existing infrastructure. Owing to European standardisation in the context of SEPA, payment transaction processing will be the first back-office activity in banking with a largely standardised European market. After reviewing the current situation and trends in payments processing, this paper argues that this will lead to the emergence of an efficient European payment transaction processing market, in which banks can freely choose suppliers for their payment transaction processing based on market prices as well as having clear alternatives in the market. Critical traditional objections to outsourcing will thus, in the medium term, no longer apply to payment transaction processing, so that banks can reap the benefits of outsourcing with clearly limited risks.

Information Technology, Gender Segmentation and the Relocation of Back Office Employment: The Growth of the Teleservices Sector in Ireland

The movement of routine back office activities from the central business districts of metropolitan regions in advanced economies to remote locations is leading to a distinctive global division of labour in office employment. While facilitated by the development of information and communication technologies, this process of relocation is primarily driven by the desire to reduce operating costs, mainly by moving to sources of cheap female workers. This reflects a classic gender segmentation process in patriarchal societies whereby back office work is mainly done by women and, accordingly, involves relatively low levels of remuneration. This provides direct parallels with the offshoring of routine manufacturing work associated with the new international division of labour. Ireland has been to the forefront in acting as a host for internationally-mobile routine office work, initially involving mainly data processing and, more recently, teleservices. As elsewhere, teleservices employment in Ireland is characterized by a combination of female predominance, low pay, difficult working conditions and high turnover rates. However, the Irish teleservices sector is unusual in its foreign language requirement, the high education levels of workers and its concentration in a prosperous metropolitan location. The resultant labour shortages, combined with growing use of Internet-based business-to-consumer transactions, are likely to place the sustainability of the sector under increasing pressure. Plans to upgrade the types of back office functions being located in Ireland may pose further challenges for women workers due to male dominance of the higher-level jobs involved.