A study on factors that influence successful outsourcing of services : The case study of Estate Management Organizations in Tanzania

The purpose of this study was to establish the factors that influence successful outsourcing of services in Tanzania. Estate management organizations were taken as a case study. In order to achieve its objectives, the study used both quantitative and qualitative techniques in collecting and analysing data. The quantitative methods were used to obtain information of various aspects of the interest of the study, whereas the qualitative methods provided a means of exploring perceptions and gaining deeper insights on specific issues. Questionnaires and interviews were used as an opinion survey approach. A total of 100 questionnaires were distributed to sampled estate management organizations and 73 were returned for analysis. Respondents included employees of client organizations, service providers and other stakeholders or beneficiaries of outsourcing services. The relevant factors that influence successful outsourcing of services in Tanzania found in the study include proper selection of the right service provider; financial capability of the organization; properly structured contract; properly structured service level agreement; management of the outsourcing relationships; senior executive support; previous outsourcing experience; open communication; strategic vision and plan and careful attention to personnel issues. The study recommends that outsourcing organizations should emphasize on close supervision of works, timely payment to service providers, staff training and careful planning of works so as to improve an overall performance of outsourcing practice.