The influence of business process outsourcing on the productivity of the mobile telecommunication companies

Abstract

Economics of business and increased focus on operating efficiencies are leading mobile telecom service providers to outsource non-core business process elements, infrastructure systems, and customer service, although the trade-off on the influence of business process outsourcing (BPO) on the firm’s productivity is still inconclusive. Few empirical studies or research have been conducted to analyze the influence of BPO on the firm’s productivity levels in the mobile telecom operators of Southern African developing countries. This research tries to redress the existing knowledge gap and the limited body of literature by providing both descriptive and empirical evidence on the influence of BPO on the firm‘s productivity levels of mobile telecom operators. A structured closed-ended questionnaire was used to collect raw data from 210 employees. Descriptive and chi-square tests were conducted to establish the statistically significant relationship between business process outsourcing and the firm’s productivity levels. The results reflect a statistically significant relationship between the implementation of BPO and the firm’s productivity. The study has practical implications for service and industrial practitioners, managers, scholars, and government policymakers in that they can strategically plan their BPO practices and link those practices to the organizations' productivity performance. Further research can be conducted in other industries in order to do comparison studies confirming lessons gained across industries on the effect of BPO on a firm’s productivity levels.