Nyaga Cyrus Njue

Thesis/project Abstract: Organizations have made outsourcing of activities that are not their main core as a trend that they will remain for a longtime. This is because it is assumed that outsourcing is a significant business practice for economies of scale which enables business to put more emphasis on their main undertakings. Outsourcing has become significant practice because of its effectiveness in saving costs and enhancing business performance as well as its value in bringing expert skills and resources that that an organization does not possess internally. Many studies which have been carried out about outsourcing besides performance of the community zone, locally have not dealt with the unusual setting in which the non-commercial state corporations exist. However an increased awareness of the context of outsourcing drivers and performance of supply is important since outsourcing is increasingly being adopted by non-commercial national corporations in Kenya. Therefore this study looks at outsourcing drivers and supply chain performance of non-commercial state corporations in Kenya. The study gathered primary data by utilizing questionnaires which were administered to 55 supply chain managers or the designates of the non-national corporations in Kenya. The data being broken down employing descriptive plus regression analysis. This study established, outsourcing in non-state corporations is driven by strategy, costs savings, gaining access to new talents and productivity and politics. Findings indicate that strategy, costs savings, accessing to new talents and politics consideration were found to affect supply chain performance positively with the highest effect being the strategic driver. The study concludes that organizations are now moving from cost savings as the main driver of outsourcing to being driven by the strategic reasons. Although cost saving is still being used in non-state corporations to drive their outsourcing decisions.