The impact of procurement process in outsourcing services towards improving performance and customer satisfaction: the case study of Tanzania electric company limited (TANESCO)

The study aimed at investigating the impact of the procurement process in outsourcing services towards improving performance of TANESCO and Its customer satisfaction, a case study of Tanzania Electric Supply Company Limited (TANESCO). To solidify information, the study used the views and opinions of TANESCO employees and providers for the outsourced services. The study examined political influence and superior authority if they really influence procurement process of selecting service providers for outsourced services in TANESCO. Also scrutiny was made to uncover their impact towards improvement of performance and customer satisfaction. The research findings have shown that for greater extent, political influence and superior authority affects procurement process for selecting service providers for outsourced services which in turn hinders achievement of outsourcing objectives. However, if factors like ensuring Procurement Management Unit (PMU) execute its responsibilities independently and imparted the needful knowledge on procurement process, the prevailing situation can be reversed. For the outsourcing companies to benefit from outsourcing concept through appropriate procurement process, it is recommended that, the procuring entities like TANESCO have to ensure the procuring process for selection of service providers for the outsourced services is done without being interfered with political influence and people with high authorities. Also, the entities should see to it that, the evaluation results are treated as per requirements of the PPA regulation (2005) which leads towards selection of service providers that are financial and technical capable.