An evaluation of outsourcing as source of competitive advantage in the Zimbabwe telecommunications industry: The case of Liquid Telecom (2009 to 2012)

Abstract

Outsourcing is one of the most researched and commonly used business practices. Most scholars agree that outsourcing can be harnessed to achieve competitive advantage. But is it all outsourcing approaches that give competitive advantage? Is the current outsourcing approach at Liquid Telecom bringing any strategic benefits? This paper explores how Liquid Telecommunications employees view the current outsourcing model employed by Liquid Telecom, with a primary focus on whether it’s a source of sustainable competitive advantage or not.

Questionnaires were distributed among Liquid Telecom employees using stratified and convenient sampling.Interviews were also carried out especially amongst senior managers to bring out the strategic thrust of the outsourcing model.

The research highlighted five major reasons why the current outsourcing approach cannot be regarded as a source of competitive advantage. Interviewees specifically reported that the major problem is the small, immature market