OUTSOURCING STRATEGY AND THE PERFORMANCE OF CHEVRON NIGERIA LIMITED

Despite the belief that outsourcing strategy has been at the core of managerial practice and literature for a long time, authors do not agree on a clear understanding of the nature of its effect on firm’s performance. This study therefore explored the long-term effect of outsourcing strategy on organization profitability of Chevron Nigeria Plc over a period of 15 years. Exploratory research design was employed. Data were analyzed using Pearson’s correlation coefficient and the findings from the test of hypothesis revealed that outsourcing strategy has a positive effect on organisational profitability. This implies that the use of outsourcing strategy in an organization enhances the profitability of the organization. The study recommended that organization should embrace the outsourcing strategy in order to cut cost, increase profitability and productivity.