Perceptions of professional service staff on the effects of outsourcing of courier services : University of KwaZulu-Natal.

Abstract

The dynamics of clock speed, the turbulence of business environment and the challenges of globalisation have influenced firms like University of KwaZulu-Natal in making the strategic decision to outsource some of its business activities. The university uses courier services to transport examination papers to and from external examiners but this schedule became problematic, affecting operational processes at the university thereby exerting considerable pressure on the professional service staff members. The main aim of this study is to evaluate the effects of outsourcing of courier service activities at University of KwaZulu-Natal. This study further aims to achieve the following objectives: firstly, to assess professional service staff’s perceptions of the effects of outsourcing couriers services at the University of KwaZulu-Natal. Secondly, to examine the effects of the dynamics of examination process scheduling on the capabilities of the courier service. Thirdly, to establish the extent of outside value-creation service sourcing to which resource based view decisions enhance efficient operations at the university. Fourthly, to evaluate the extent of outside value-creation service sourcing to which transaction cost economics’ decisions are strategically derived. Finally, to assess the relationship between the perceived courier service performance requirements and the university’s decision process on resource capacity maximization and transaction cost containment. An exploratory research design was used to evaluate the relationship between the courier company’s service performance and decisions relating to cost containment within the limited resources. Statistical techniques such as descriptive statistics, logistics regression, factor analysis and multiple regression were used to analyze the data collected from 124 professional staff members at University of KwaZulu-Natal (all five campuses). The main findings reveal that the most important factors to consider when outsourcing, especially during the examination period were a flexible schedule, service excellence, innovative technology, an integrated logistics system, administrative work, courier value added service and increased efficiency. The managerial implication involves some remarks and recommendations that will assist management in deciding on the factors already adopted to enhance the university’s operations as well as adopt those that are lacking thereof. The adoption of these factors will confirm the decision to outsource as a good strategy for the university.