Assessment of Factors Influencing Outsourcing Strategy in Teaching Hospitals in South-Western Nigeria

This study investigated factors influencing outsourcing strategy in South-Western Nigerian teaching hospitals. The study utilised primary data which were collected through questionnaire and key informant interviews. The data collected were analysed using descriptive and inferential statistical techniques. The paper found that cost reduction, greater flexibility, reduced manager's burden, improved services, efficient use of resources, reduced staff workload and innovation and creativity, are the most factors influencing outsourcing strategy in Nigerian teaching hospitals. The study, however, revealed that technical convenience and efficiency, increased productivity/performance, the need to focus on core activities, Improvement of service delivery and quality, as well as to meet changing customers' needs is the major rationale for outsourcing in Nigerian teaching hospitals. In addition, the study concluded that reduced manager's burdens, reduction staff workload, are the major benefits of outsourcing in the Nigerian teaching hospitals. The study, however, concluded that outsourcing is an emerging process in Nigeria. Therefore, the Nigerian health sector needs to pass through a learning phase before outsourcing is recognized as an efficient management and regulatory tool.