Abstract
The Nigerian telecommunication industry has undergone several changes in recent years. This was caused by the deregulation and liberalization of the nation’s telecommunication industry to improve operations and increase network optimization and ensure expansion in the Nigerian telecommunication industry. A need for relieving some responsibilities was called for, and this gave rise to the use of third parties, or outsourced firms. As the telecommunication industry in Nigeria evolved and kept growing across states and expansion was required for the improvement of customer satisfaction, there was a need by the industry to devise means of increasing profits yet reducing costs and liability. In today’s world of rising market edge and competitive advantage it is necessary to generate revenue and improve optimization to meet network delivery to the nation. One such best industrial business strategy, as identified, is the use of outsourcing in telecommunication operations. This will provide a competitive advantage both technologically and economically, thereby reducing transmission costs and maintenance of services.
The study focused on evaluating outsourcing in the Nigerian telecommunication industry with the primary aim of determining the drivers of outsourcing, the obstacles of outsourcing, the benefits of outsourcing, the critical success factors as well as the measures used to improve outsourcing in the Nigerian telecommunication industry. This study was conducted using a quantitative cross-sectional analysis of the research question which evaluated outsourcing in the Nigerian telecommunication industry. This was done using the SPSS 26 software for statistical analysis in conducting a descriptive and exploratory factor analysis on the drivers, benefits, critical success factors, obstacles and measures to improve outsourcing in the Nigerian telecommunication industry. Data for this study was obtained from literature reviews across developed nations and developing nations from Africa using two countries for each case study. Primary data collection was effected by means of a questionnaire using data sets obtained from the reviews. One hundred and sixty inquiries/questionnaires were sent out and one hundred and forty-two were filled in and returned. The responses recorded showed an 88.75% response rate for descriptive and exploratory factor analysis.
Findings from this study show that the drivers of outsourcing in the Nigerian telecommunication industry are cost-savings, market growth and expansion, shared risk and liability, improving operational productivity and capacity. These are clustered under innovative development and
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improving operational productivity. Findings from this study show that the benefits of outsourcing in the Nigerian telecommunication industry are cost-savings, simplified project management, growth and market expansion, improved company focus and shared risks. They all fall under the clusters business process re-engineering strategy benefits and business project growth benefits. Findings from this study show that critical success factors for successful outsourcing in the Nigerian telecommunication industry are operational flexibility, flexible payment plans, growth and expansion spread, history and performance measurement and pricing/cost of service. They are clustered under management success factors, operational success factors and contract success factors.
Findings from this study also show that the obstacles to successful outsourcing in the Nigerian telecommunication industry are vendor resource issues, security risks and confidentiality issues, public backlash from job loss, right-sizing service level agreements, cost-benefit issues and loss of critical skills. These are clustered under vendor management obstacles, operational transition obstacles, operational resource obstacles, contract and trust obstacles and unforeseen management obstacles. Furthermore, findings from this study show that the measures to improve outsourcing in the Nigerian telecommunication industry are tracking outsourcing benefits, clear and defined service level agreements, establishing communication lines between both partnered parties, picking the right vendors, and creating expected quality standards which all fall under the clusters of operational confirmation measures, professional competence measures and administrative resource measures.
The Nigerian telecommunication industry considers the aforementioned as the evaluation measures of outsourcing in the telecommunication industry. This has been confirmed both by relevant literature and the responses from professional respondents in the Nigerian telecommunication industry.
Keywords: Evaluation, Outsourcing, Telecommunication Industry, Nigeria.