Corporate Outsourcing and Organizational Performance in Nigerian Investment Banks

Purpose: This study aims to ascertain the relationship between corporate outsourcing and investment bank performance in Nigeria. Research Methodology: The study adopted a survey research design because it is suitable and ideal for assessing how effective outsourcing strategy affects the corporate performance of investment banks in Nigeria. The population of the study was 280 staff from three investment banks in Nigeria. Using a purposive sampling technique, a sample size of 258 senior, medium, and junior staff of the sampled investment banks were selected as respondents. Multiple regression was used to test the hypotheses that were developed at a significance level of 0.05 percent. Results: The study showed that outsourcing has developed into a practical strategy and instrument for corporate organizations, particularly for Nigerian investment banks that are constantly looking to improve their firms' performance in the financial industry. To lower operating expenses and boost operational effectiveness in Nigeria’s investment banking sector, the management of Nigeria's investment banks should strategically allocate their resources and work with a partner. Limitations: The result of this study may not apply to other excluded categories because this study is limited to investment banks in Nigeria as of December 2022. It is expected that further studies should cover all the banks as well as insurance firms in Nigeria. Contribution: To leverage the services of other organizations and professionals outside of their core competencies for operational effectiveness and efficiency, corporate organizations in Nigeria, especially those in the financial sector, should incorporate outsourcing strategy into their corporate culture. Implications: Corporate outsourcing is pivotal to organizational performance if well applied.