The effectiveness of outsourcing practices in non-governmental organizations performance: a case study of population services international Tanzania.

This study examined the effectiveness of outsourcing practices in non-governmental organizations performance. Specifically to find out the effect of outsourcing practices on cost saving in NGO’s; to examine effect of outsourcing practice in quality services offered by NGO’s; to assess the role of outsourcing practices used to timely delivery service and products in NGO’s; and to identify the challenges that hinder effective outsourcing practices on performance of NGO’s. The study employed positivism approach by using explanatory design which assessed the causal relationship between study variables. Data were collected using the questionnaire and they were analyzed by use of SPSS programme that produced measurements and output required to fill the identified gap. Descriptive statistics related to demographic data of the respondents were produced with aid of factor analysis approach. Correlation and multiple regressions were performed to show the relationship between independent and dependent variables. Each table from regression analysis show the significant impact of independent variables to the organization performance.Findings showed that there is improved performance of an organization which is outsourced.All, variables (cost saved, timely delivery and quality of the service) were positive and statistically significant on the dependent variable (organization performance). Thus, the study concludes that outsourcing practices in non-governmental organizations (NGOs) pertaining to supplies and deliveries and other means are useful and efficient. As such, the study recommends the practice to be embraced to enhance the performance of the organizations. However, there is a need for further study on value for money, expenditure control pattern and proper auditing practices among non-governmental organizations (NGOs) in Tanzania. Government need consider a formulation of policy framework which is properly to smooth outsourcing practice.