Business process outsourcing and operational efficiency in the telecommunications industry in Uganda a case study of Airtel Uganda

Abstract

This study overall objective was to examine the relationship between Business Process Outsourcing and Operational Efficiency at Airtel Uganda. The specific objectives related to assessing the relationship between business process outsourcing planning, implementation and monitoring and evaluation and operational efficiency at Airtel Uganda. A cross sectional design adopting qualitative and quantitative approaches was used, the study population included 125 staff consisting of top management, middle management level, lower management level and service providers were interviewed. Data was collected using questionnaires and interviews. The study revealed a moderate positive significant relationship between business process outsourcing planning and Operational efficiency at Airtel Uganda represented by (R= 0.502**, P = 0.000). Secondly, the study further discovered a high positive significant relationship between business process outsourcing implementation, and Operational efficiency at Airtel Uganda represented by (R=0.805**, P = 0.000). Thirdly, the study discovered a high positive significant relationship between business process outsourcing Monitoring and evaluation and Operational efficiency at Airtel Uganda represented by (R=0.665**, P=0.000)To enhance operational efficiency of Airtel Uganda using BPO, the study recommends that the management of Airtel in its BPO planning should: f n its make and buy decision making conduct adequate cost evaluation on each activity to guide decision to outsource or keep in-house; In SLAs clearly define penalties for contract violations as disincentive for poor performance. To enhance operational efficiency of Airtel Uganda using BPO, the study recommends that the management of Airtel in its BPO implementation should: Solicit for more than one partner and subject them to venting process and award contracts for outsourcing based on best evaluated bidders at partner solicitation level. Strengthened partners ' relationship management through integrating technology with its partners for enhanced information sharing for outsourced activities. To enhance operational efficiency of Airtel Uganda using BPO, the study recommends that the management of Airtel in its BPO monitoring and evaluation should: .The responsible partnership managers and accounts department submit all the ·necessary accountability for timely payments that are based on fulfillment of performance expectations. Payment should be effected at least 30 days of invoicing or as provided for in the contract.