Effect of Outsourcing Strategies on the Organizational Performance of Fast-Food Industries in Lokoja Metropolis

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Abstract

This study examined effect of Outsourcing Strategies on the Organizational Performance of Fast Food Industries in Lokoja Metropolis (A case study of six selected fast food). The main objective of this study is to examine the effect of outsourcing strategies on the organizational performance of fast-food industry, in Lokoja metropolis. The hypothesis tested is in correlation with the research objectives and the questions. The research adopted structure form of questioning in designing the questionnaire, options were provided for the respondent to choose from. The researcher made use of both primary and secondary source of data collection. The study found that cost was the first most important driver for outsourcing in the company. The study findings revealed that the second most important driving force for outsourcing strategy was innovation and finally, the study found that the need to focus on core competencies was a major reason why the company chose to outsource some of its activities. Firm should adopt strategic and well thought out outsourcing partnership in order to continuously reduce operating cost for growth, businesses should carefully consider their outsourcing strategies to ensure that while outsourcing helps in new innovations, the cost is controlled and core activities are never outsourced.