The Effect of Outsourcing Cost on Corporate Performance: A Study of Nigerian Brewery Industry

Acti Ifurueze M.S.K CAN () and Ekezie Chineze Abigail
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Acti Ifurueze M.S.K CAN: Department of Accountancy, Anambra State University, Nigeria
Ekezie Chineze Abigail: Department of Accountancy, Anambra State University, Nigeria

International Journal of Economics and Empirical Research (IJEER), 2014, vol. 2, issue 3, 84-93

Abstract: Outsourcing as common phenomena in the corporate world especially in the developing country and in industry where human resource development is at low ebb has its merit and demerit. This paper therefore examined the effect of outsourcing on corporate performance measured by profitability. Various objectives and reasons for outsourcing were highlighted. Data was collected from external and internal source. Two hypotheses were postulated and Regression analysis was run to determine the relationship between the variables. The result showed that outsourcing has a significant effect on corporate profitability. The study further reveal that despite the positive benefit of outsourcing which includes service standardization, increase in service quality and effectiveness, corporate organization need put a standard cost control policy in place to benefit fully from outsourcing practice.This paper opens up new insights for policy makers to improve corporate performance in Nigeria.

Keywords: Outsourcing; Corporate performance; Service standardization; Labor productivity (search for similar items in EconPapers)
JEL-codes: G34 J24 M55 (search for similar items in EconPapers)
Date: 2014
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