With evidence of recent increase in banks? engagement in service outsourcing in Ghana, this study examines the influence of outsourcing on performance of listed banks. In particular, this study examines the different services and reasons for outsourcing, followed by a causal analysis of how outsourcing and other predetermined variables influence performance. Using a multiple linear regression model to ascertain the effect of outsourcing on performance, the study found outsourcing to influence Return on Assets (ROA) and Return on Equity (ROE) negatively. Outsourcing however had positive relationship with Profit Rate (Rp). All the variables however were statistically not significant at (0.05) but provided strong explanations on performance. There is therefore no significant relationship between outsourcing and performance of listed banks. Banks should therefore, handle outsourcing strategy very tactfully because it has the potential of reducing the returns banks receive on both their assets and shareholders? equity.
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