Employee perceptions on service quality at a selected outsourcing company in Cape Town

Abstract

Over the last decade, business process outsourcing (BPO) has become increasingly important in the South African context. For economic and strategic reasons, organisations have embraced an outsourcing strategy as one of their core activities in order to be competitive in the business arena. On this matter, the standard of services delivered by BPOs is crucial to achieve customer satisfaction. However, the lack of effective quality management practices, which impact on service delivery negatively, ultimately paves the way for customer dissatisfaction with service quality in BPOs. This issue needs to be considered carefully by BPOs. Thus, this study has investigated employee perceptions in relation to the key measurements for service quality, namely reliability, responsiveness, assurance, empathy and tangibles through the SERVQUAL model to measure the quality of service delivery at a BPO in Cape Town, South Africa. A quantitative research method was applied and data were collected through a semi-structured survey questionnaire from the group of employees (n=188) at the selected BPO in Cape Town. The statistical software program SPSS Version 25 and Microsoft Excel were used for data analysis. Descriptive statistical results were generated as well as the validity and reliability of the dataset determined. The research findings revealed that the key factors to which particular attention needs to be given are reliability, responsiveness, assurance and empathy. It is revealed that it is imperative for the BPO to intensify continual training and skills development for their employees. Given the findings of these key factors as focus areas for good practice, this study has drawn special attention to the selected BPO and other BPOs in the South African context to advance their service quality to maintain their services up to standard and to remain competitive. The research could benefit BPOs in South Africa and Africa in general as more and more companies are outsourcing their services on the continent.