Impacts of Logistics Outsourcing on Organisational Performance in Selected Oil and Gas Companies in Rivers State

The study on logistics outsourcing and organizational performance was carried out to determine the extent to which outsourcing as a business strategy affect or contribute to organizational performance in tandem with efficiency and productivity in the attainment of organizational goals. The study focused on Nigeria oil and gas industry and investigated Logistics outsourcing and how it contributes to organizational performance using selected oil and gas companies in Rivers State, Nigeria. The study is premised on the understanding that every business organization was established, including oil and gas companies to maximize profit by adopting strategies that reduces costs. It is on this note that modern business organizations have resorted to outsourcing as a strategy by concentrating in core operations of comparative advantage, while non-core areas are outsourced. The core competency the or ywas adopted for this work to provide a holistic analysis of the relationship between Logistics outsourcing and organizational performance. Two research questions and corresponding hypotheses were formulated. A questionnaire titled Logistics outsourcing and organizational performance questionnaire (LOOPQ) was designed to elicit primary information and data from respondents who were chosen from the oil and gas companies and service providers. Secondary data was obtained from company records. Simple statistic tools of percentages, tables and charts were used to analyze the data. The study found that there is a significant relationship between Logistics outsourcing and organizational performance in the selected oil and gas companies in Rivers State. The study found that the impacts of logistics outsourcing on the oil and gas industry includes: provision of financial saving from reduction in labour and operation cost, internal efficiency due to reduced internal workload, improved service delivery through specialist services, knowledge transfer, enhance core competency and ultimately increased organisational performance. The study recommends that Logistics outsourcing should be embraced by Nigerian business organizations generally and factored into Nigerian Local Content Policy.