1.1 BACKGROUND OF THE STUDY
Vision is the ability to see what change is needed and how it will benefit people when the change is made. The vision of outsourcing business functions to external provider came out of the desire of corporate executives who out of exigency of time purposed to improve company’s focus, enhance profitability/productivity through cost reduction or control of operating costs and freeing internally available resources for other value adding activities that is fundamentally core to them. Outsourcing as a process involves shelding off of non-core functions that is highly resource demanding or difficult to manage by utilizing outside opportunity available to have top level support that the organization could not get internally. As a contracted relationship, it involves transferring of existing non-core business functions including its relevant physical and human resources to external provider in order to strategically utilize outside resources to perform task previously done in-house. Outsourcing is growing in our environment because business. Margins are thinning out. And once this begins to happen, every responsible business driver to look for ways to maximize profit.
Outsourcing thus provides the avenue needed to get services rendered without necessarily paying fully for it. As outsourcing continued to gain ground and acceptance around the world, organization are beginning to assess what function(s) within the organization can be outsourced and how outsourcing such function would impact on the whole organisation. They want to know how a decision to outsource a particular function could take them from print A to Point B. they want to know how they can reposition themselves to be managers of result instead of resources knowing that once they outsourced certain function within the organisation; the onus automatically falls on the provider on the agreed result. On the contrary, survey has shown that a large proportion of firms that have outsourced some processes are not happy with the result obtained. The major reasons adduced for this un-satisfactory experience include, poor, quality service, lack of devotion and commitment to duties. Additionally, a seemingly random policy of outsourcing can lead to lower employee morale and by extention decrease in the level of productivity and to a “who next atmosphere”.
Furthermore, the problem of contending with labour union who are of the view that workers are unjustly been casualties have left sour experience on some companies that previously outsourced some of their business processes.
This research is therefore set to focus on the process of outsourcing physical security function on a medium scale enterprise while taking cognizance of these contending views.
1.2 STATEMENT OF PROBLEM