ABSTRACT

The study examined outsourcing and marketing performance of selected financial institutions in Abia State, Nigeria. Outsourcing is viewed by organizations as a way of achieving specific goals, improve customer satisfaction and profitability. Outsourcing assists management focus all their intellectual resources, proficiency and time on the competencies that will give the organization an edge in the market. The specific objectives of this study were to examine the marketing activities outsourced, the reasons for outsourcing and to evaluate the effects of outsourcing on organizational performance. The data used for this study were obtained from primary sources with the use of well-structured questionnaire to analyze the data that were elicited. The statistical techniques employed to analyze the effect of certain parameters were descriptive and inferential statistical tools. The findings showed that there is significant positive relationship between the variables outsourced and organizational performance. This implies that outsourcing activities improved organizational performance. Cost reduction benefits showed a strong positive relationship with the financial institutions' decision to .embark on outsourcing activities. The result also showed that banks have competitive advantage over other banks while adopting outsourcing strategy. The study therefore concludes that outsourcing will effectively enhance organizational performance by firms delegating some of their activities to external firms. Following the findings, it is recommended efforts should be made by banks to provide frameworks for selecting outsourcing vendors that will benefit the organizations to avoid financial crisis. Also, it is recommended that financial institutions should outsource some of their activities in order to get access to expert services which will enable them focus on their core competencies.