Impacts of Outsourcing Activities on Banking Industry Performance in Nigeria

Abstract

The paper empirically examined impacts of outsourcing activities on performance of banks in Nigeria using data from twenty banks with fifty respondents selected from each bank. The findings emanated from this research exercise concluded that outsourcing has no effect on profitability and personnel cost of the bank but increases stock prices and also service delivery, hence, the study concluded that there is significant relationship between outsourcing activities and bank performance and that outsourcing is a strategic tool in the activities banks in Nigeria. The paper recommends and advice Banks to improve their outsourcing activities, operations and organizational performance. Banks should involve in Human resource (HR) outsourcing so as to take advantage of the use of expert services as well as to capitalize on the outstanding quality that external firms provide in performing the human resource (HR) functions.