Outsourcing Strategy and Organisational Efficiency of Public Tertiary Institutions in Enugu State: The Case of Non-Core Service Functions

The outsourcing of non-core service functions has emerged as a viable strategy for public tertiary institutions seeking to improve operational efficiency, reduce overhead costs, and refocus institutional resources on core educational and research mandates in an era of constrained government funding. This study examines the relationship between outsourcing strategy and organisational efficiency in public tertiary institutions in Enugu State, focusing on non-core service functions including security, catering, cleaning, and facility maintenance. The study is anchored on Transaction Cost Economics (TCE) Theory, which provides a framework for evaluating the make-or-buy decision based on asset specificity, transaction frequency, and uncertainty in market contracting. A descriptive survey research design was employed. The population comprised bursars, administrative directors, and outsourcing contract managers across seven public tertiary institutions in Enugu State, including universities, polytechnics, and colleges of education. A sample of 143 respondents was drawn using purposive and stratified random sampling. Data were collected via structured questionnaires and document analysis of outsourcing contract performance records, and analysed with regression and correlation techniques. Findings reveal that outsourcing non-core functions generates statistically significant improvements in cost efficiency, service quality consistency, and administrative responsiveness when vendor selection and contract management are professionally conducted. The study further finds that institutions with structured vendor evaluation processes and performance monitoring mechanisms realise 36 percent higher efficiency gains from outsourcing compared to those with unmonitored vendor contracts. It is concluded that strategically managed outsourcing of non-core services represents a proven pathway to institutional efficiency improvement in Enugu State's tertiary education sector. The study recommends that institutions develop comprehensive outsourcing governance frameworks including vendor prequalification criteria, key performance indicators, and regular contract performance reviews.

Keywords: Outsourcing strategy, organisational efficiency, public tertiary institutions, Transaction Cost Economics, Enugu