Effects of Outsourcing on Banking Staff Productivity: A Case Study of Barclays Bank Ghana Limited, Cape Coast-Ghana

Abstract

The objective of the study was to examine the effects of outsourcing on banking staff productivity, focusing on the challenges and benefits of outsourcing in Ghana with Barclays bank of Ghana Limited as a case study. Descriptive survey design was used. The census method was used to capture all the 29 staff of the bank made up of six managers, 10 permanent staff and 13 outsourced staff. Data were collected using questionnaire for both managers and permanent/outsourced staff. Descriptive statistical tools such as cross tabulation, frequency and percentage distributions were used to analyse the data. The findings of the study show that the bank outsourced for staff whose contracts are often renewed in every six months. Outsourcing reduces the bank cost and risk of operation. It put the bank in a position to have best practices in the banking industry. However, outsourced staff are not allowed to perform certain sensitive roles in the bank. Outsourcing of staff also de-motivates permanent staff. Based on the key findings and conclusions the study recommended to managers of the bank that they should request management to ensure that appropriate outsourcing strategies are used to boost the output and performance of the bank and it staff. Also, management must try to remove the fear being entertained by permanent staff that their job will be taken over one day by the outsourced staff.