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| Outsourcing of Procurement Services and Performance of Public Health Institutions: A Case Study of Itojo Hospital, Ntungamo District, Uganda
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Moses Ntirandekura, Akakikunda Teddy, Akankwasa Alex
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Abstract:
The purpose of the study was to establish the effect of outsourcing of procurement services on performance of public health hospitals in Uganda. The objectives of the study were to examine the role outsourcing in Itojo hospital, to determine the critical success factors for compliance of outsourced distributors on performance of Itojo hospital and to establish the relationship between outsourcing of procurement services and performance of Itojo hospital. The study used cross section research design. A sample of 108 respondents was used. Purposive and simple random sampling techniques were used in selecting respondents. Data collection was done using questionnaires, interviews and documentary review. Findings established that outsourcing allows core staff to focus more on coming up with organizational strategies. The study also established that outsourcing is important in hospitals because it allows the hospitals to focus on its core business. In addition, outsourcing helps to reduce the number of staff and related expenses also allows offering services the organization could not otherwise provide and as well provide consistent/improved service delivery. The study also established that improving service delivery has been one of the most important reasons for outsourcing in Itojo Hospital though there were still gaps in service delivery. Also, outsourcing enables the human resource professionals of organizations to focus on the core issues which are important in enhancing performance. It was also established that outsourcing ensures that competent and knowledgeable workers are employed to contribute new ideas which important in ensuring effective performance. the study recommended that hospitals should consider outsourcing more if not all their non-core business to outside providers as a major strategy of remaining competitive. This is because outsourcing gives company management and staff more time to concentrate on core business to produce quality product to out compete their competitors in the market place and hence a source of competitive advantage.
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