Outsourcing Practices on Customer Satisfaction in Public Residential Real Estate in Mombasa County, Kenya.

Abstract

In today’s ever-competitive business environment, real estate organizations constantly look for ways to improve their services and create value for their customers. Most organizations outsource managerial functions to external experts to optimize service delivery. Outsourcing provides access to specialized competence and technology, which reduces operational costs for the organization. Earlier studies on outsourcing have focused mainly on its impact on organizational performance and profitability. This study examined the influence of outsourcing practices on customer satisfaction in public residential real estate in Mombasa County. The study employed a descriptive design and a quantitative research method to answer the research problem. The target population included all the public residential properties in Mombasa County. The study adopted a stratified sampling technique to get a representative sample from three parastatals, including Kenya Ports Authority, Kenya Railways, and Kenya Power and Lighting Company, that own and manage public residential real estate in Mombasa County. From a target sample of 200 participants, 150 participated in the data collection process, resulting in a 75% return rate. The study relied on primary data collected from the field using self-administered standard structured questionnaires with closed-ended questions designed to help address the research questions. The collected data was analyzed quantitatively using Statistical Package for Social Sciences (SPSS) version 24, and the outcome was presented using descriptive and inferential statistics. On the factors that drive organizations to outsource services, the findings revealed that the organizations outsourced to enhance the efficiency of their property management and ensure the quality-of-service delivery through access to affordable skilled labor, better sanitation, and improved performance. A multiple regression analysis was conducted to determine the association between customer satisfaction (Dependent variable) and outsourcing practices (administrative services, financial service outsourcing, human resource, and sanitation services outsourcing). The regression analysis found that outsourcing practices of three independent variables (administrative, financial, and sanitation) significantly influence customer satisfaction in public residential properties since their p-values (p < .05) were less than the significance level of 95%. The findings showed that the regression model adopted in the study was significant in predicting the influence of outsourcing practices on customer satisfaction. Based on the results, the study concluded that embracing outsourcing practices in public residential properties enhances customer satisfaction by augmenting operational efficiency and improving the quality-of-service delivery. Therefore, the findings provide critical information that can help the parastatals enhance their outsourcing competencies to improve customer experience in their real estate properties in Mombasa County. Improved service provision would lead to customer satisfaction; however, organizations should consider the potential challenges of outsourcing.