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The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry.

Authors: ADEGBIE FOLAJIMI

Publication Type: Journal article

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Interdisciplinary Journal of Contemporary Research in Business,UK 2011 June Volume 3,Number 2 pp.77-88. The paper identified that in the Nigeria service industry, there is high operating cost which has negative impact on return on capital employed, there is sub-optimality in production because of ineffective utilization of resources and inability of organization to identify areas of core competence for competitive advantage. The paper evaluates the competitive advantage of outsourcing the products and services in the Nigerian service industry. Questionnaire was employed in gathering data from ten sampled organization in the service industry. The following three hypotheses were formulated in null form: High operating costs have no negative impact on profitability and return on capital employed, Ineffective utilization of resources has no impact on sub-optimality in production and outsourcing has no positive relationship with competitive advantage. Chi-Square statistical method was used to analyze the data obtained from the field. The findings are that outsourcing helps companies to compare their prices with their own costs and that of top performing companies for cost control; enables them to adopt the appropriate price strategy for the outsourcing contracts. Further, outsourcing of a segment of the products or services enhances contribution per unit of products and services. As for the companies, it was found that outsourcing enhances their core competence and leads to effective utilization of resources. The paper concludes that the top management should aim at taking advantage of the services of experts who specialize in their non-core activities and functions among others, which will create a vantage competitive advantage.

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ADEGBIE,F. . (0000). The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry., 0 (), 0-0.

ADEGBIE,F. . "The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry." 0, no (), (0000): 0-0.

ADEGBIE,F. and . (0000). The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry., 0 (), pp0-0.

ADEGBIEF, . The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry.. 0000, 0 ():0-0.

ADEGBIE,FOLAJIMI , . "The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry.", 0 . (0000) : 0-0.

A.FOLAJIMI , "The Competitive Advantage of Outsourcing the Products and Services of the Nigerian Service Industry." vol.0, no., pp. 0-0, 0000.

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