Outsourcing is a management approach in which a company outsources key or non-core business operations to specialized and cost-effective service providers. 2013 (Rajee & Hammed).

Over the last few decades, Nigerian businesses have been under pressure to restructure and improve their long-term viability as the business environment has become increasingly complicated, dynamic, and hazardous as a result of globalization. A more strategic approach to outsourcing corporate operations, processes, and management techniques resulted from this desire for efficiency and increased productivity. As more employees moan under the ‘policy of wage reduction’ by labor companies without sacrificing the quality of services given, outsourcing jobs in Nigeria has become a source of considerable concern.

Furthermore, Owoseye and Onwe (2009) pointed out that, despite the fact that section 17 sub section 3(e) of the Constitution guarantees “equal pay for equal work without discrimination on account of sex, or any other ground whatsoever,” pay discrimination between permanent and casual employees still exists. They believe that the Act recognizes this type of job in the same way that it recognizes conventional employment. To avoid the legislation, many outsourced employees do not have letters of employment, and many corporations do not keep track of their outsourced personnel. Alozie (2009, Alozie, Alozie, Alozie, Alozie, Al

Most criticism concerning outsourcing has been primarily in the areas of changing employment patterns of employment, globalisation of the labor force, and its effect on.

The extent to which an individual completes an assignment or task is referred to as performance. It refers to the degree to which a task that makes up an employee’s work has been completed (Cascio, 2006). The net effect of an employee’s effort as modified abilities and roles, or task perceptions, is referred to as job performance (Jones, 2003). Organizations outsource with the intention of lowering costs, increasing productivity, and increasing capacity, which can sometimes result in downsizing.

Employee performance determines whether an organization succeeds or fails. The negative impact of outsourcing on employee job performance has resulted in increased levels of unhappiness and has influenced workers’ employment status, resulting in a minimum degree of job security in which outsourced employees are denied certain benefits. Because of the higher unplanned turnover associated with outsourcing, businesses do not invest in employee training and development, which is a key criterion for increased productivity. Employee morale and career advancement also contribute to the organization’s flexibility, sustainability, and stability. It is as a result of this background, the researcher seeks to examine outsourcing strategy and employee job performance in the banking industry, ijebu-ode, Ogun-state, Nigeria.


Over the last few decades, there has been a rising recognition of the significant impact outsourcing strategy has had on organizational performance (Cousins, Lawson, & Squire, 2006). As a result of the rapid advancement of technologies, science, globalisation, and ever-increasing competitiveness, companies have established policies of flexibility and adaptation to economic changes in order to keep profits as high as possible. Many organizations consider it more profitable to produce their products and services in-house, while others consider it more profitable to source from outside sources (Asiamah, 2013). Outsourcing is used by businesses for a variety of reasons. Because every organization’s situation is unique and differs from other organizations, it’s not surprising that different organizations use outsourcing for different purposes. The global economic crisis has created a dangerous work environment in which many desperate job seekers are willing to take any job for the sake of survival rather than dignity. In many organizations in Nigeria, labor exploitation is rampant (Kazeem, 2004). Poor pay, wage and salary arrears systems, training, advancement, motivation, sense of belonging, job satisfaction, and dehumanization of work and people are some of the ways it shows itself. Nigeria’s experience with post-adjustment economic policies has been nothing short of the same macroeconomic policies, namely trade liberalization, floating exchange rates (market driven), privatization and commercialization, government withdrawal from social provisioning, reduced public sector spending and investment (civil service retrenchments and rationalization) (Anugwom,2001).

Globalization and trade liberalization, combined with increased competition from imported goods, have led businesses to downsize its workforce and replace it with outsourced labor in order to save costs and stay competitive. Workers with a relational psychological contract (permanent employees) are more likely to have a higher level of commitment than those with a transactional psychological contract (temporary employees) (Fapohunda, 2012).

As a result, outsourcing is a component of a new era in labor management. It is an era in which many workers are forced to fit into the needs of production and service providing by being given only a few options.

Shorter work hours are often associated with lower income and less competent jobs. It is primarily conducted by persons who have other responsibilities (for example, careers for children, the elderly, and students) or who have no other options (for example, blue collar employees seeking any kind of alternative to unemployment) (Buchanan, 2004). In the modern Nigerian industrial relations system, outsourcing is a current and contentious problem. In certain aspects, outsourcing as a phenomenon in Nigeria has not been well received, and this is not unrelated to how it is carried out in the country.

As a result, the substantial proportion of Nigeria’s workforce that falls into this category may be confronted with globalization-driven labor realities (Rasak,2009). Outsourced workers are subject to lower pay, poor work conditions, such as poor and unstable wages as well as a lack of fringe benefits, no job insecurity, non-title to leave, no gratuity, no accident and death insurance, and a lack of power to organize collective bargaining when compared to permanent employees. Permanent employees are entitled to all advantages offered by the company, including job stability, leave, promotions, gratuities, bonuses, a pension plan, social security, allowances, and other perks. Outsource workers’ sole hope of achieving their goal and reaping the same benefits as their coworkers is to outsource their labor (permanent workers)


The purpose of this research was to find answers to the following questions:

1) What is the relationship between job performance and outsourcing strategy?

2) How do workers’ well-being, employment status, and benefits affect job performance?

3) In the banking business, what are the implications of outsourcing strategy and job performance?


The overall goal of this research is to look into the impact of outsourcing strategies on job performance in the banking business. The study’s precise objectives are to:

I Investigate the link between outsourcing strategies and job performance.

(ii) Assess the impact of employee well-being, employment status, and benefits on job performance.

(iii) Examine how outsourcing strategy affects job performance in the banking business.


Employee performance determines whether or not an organization can meet its stated goals. As a result, it is vital to investigate the impact of outsourcing strategy on job performance in a company. Many organizations in this country will benefit greatly from the research. They will be more conscious of the impact of outsourcing as a result of the findings. Organizations and governments, in particular, can use the research findings to devise measures for counteracting the influences.


The study’s scope was limited to all financial institutions in Ijebu-ode, Nigeria’s Ogun state.


Outsourcing is a management approach in which a company outsources key or non-core business operations to specialized and cost-effective service providers. 2013 (Rajee & Hammed)

Job performance is the result of an employee’s effort manifested as modified talents, roles, or job perceptions (Jones, 2003). An employer evaluates an employee’s performance during job performance evaluations, taking into account criteria such as leadership ability, time management, productivity, and organizational skills to assess each employee individually.

Productivity is the average measure of a company’s production efficiency. It’s calculated as the ratio of output to inputs in the manufacturing process.

Efficiency is defined as the ability to avoid wasting materials, energy, efforts, money, and time when performing or manufacturing something.

Employee morale is a mental and emotional issue that occurs when employees are unhappy about their work environment and believe that they are unable to achieve their most critical professional and vocational needs at work.

Profit maximisation refers to an organization’s capacity to maximize profits while keeping operational costs low.


In an economy, liberalisation refers to the reduction of government controls and restrictions in exchange for increased participation by private entities.


The process of shifting a business or industry from the public to the private sector is known as privatisation.


Globalisation is the process by which the globe becomes more interconnected as a result of greater trade and cultural interchange.

A contravention is an activity that goes against something; it is a violation or disagreement.

Jurisdiction is a legal term that refers to a legal agency’s ability to exercise authority over a person or subject matter.

Economic policies for developing countries are known as structural adjustment programs (SAPs). This policy was created in order to correct the flaws and ineffectiveness of previous industrial policies. Its goals and objectives include the following:

1. To encourage investment

2. To boost non-oil exports and lay the groundwork for private-sector-led development.

3. To improve Nigeria’s industrial sector’s efficiency.

4. Economic privatization and commercialization in order to increase industrial efficiency

5. Encourage faster development and the utilization of local raw resources and intermediate inputs rather than relying on imported technologies.

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