Please use this identifier to cite or link to this item: https://hdl.handle.net/10321/4157
Title: Uncovering the strengths and weaknesses of outsourcing core business deliverables: the case of selected state-owned enterprises in South Africa
Authors: Magagula, Marcia
Zondo, Robert Walter Dumisani
Keywords: Outsourcing;power plant maintenance;State-owned enterprise (SOE);Organisations
Issue Date: 9-Dec-2020
Publisher: Solid State Technology
Source: Magagula, M. and Zondo, R.W.D. 2018. Uncovering the strengths and weaknesses of outsourcing core business deliverables: the case of selected state-owned enterprises in South Africa. The Journal for Transdisciplinary Research in Southern Africa, 14(1): 1-7.
Journal: The Journal for Transdisciplinary Research in Southern Africa, Vol. 14, Issue 1 
Abstract: 
Background: The outsourcing phenomenon is one of the extensive areas of business in the
world. It is a practice among both private and public organisations and an important element
in business strategy. Consequently, the execution of maintenance and repairs of equipment are
core business deliverables of the power plant maintenance (PPM) department of the selected
state-owned enterprise (SOE). Whilst internal employees normally perform such functions,
the PPM department outsources them to external service providers.
Objective: This study explored the contributing factors influencing outsourcing of core
business deliverables.
Method: The study was conducted in the PPM department of the selected SOE. Of the 152
individuals located across eight of the provinces in South Africa, identified for participation in
the study, 135 participated. It was cross-sectional in nature and included participants from the
management of the PPM department as well as its technical officials. Descriptive, correlation
and regression analysis were used to test the three objectives, namely to assess the contributing
factors influencing outsourcing of core business deliverables, to establish the effect of
outsourcing core business deliverables on business performance and to examine the risks of
outsourcing core business deliverables.
Results: Outsourcing core business deliverables provide flexibility to the PPM department by
enabling it to meet unexpected demands. However, it results in the leaking of confidential
information to external service providers.
Conclusion: Organisations that decide to outsource, must consider the benefits and risks
carefully and take measures to mitigate the related risks.
URI: https://hdl.handle.net/10321/4157
ISSN: 1817-4434
Appears in Collections:Research Publications (Management Sciences)

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