Contact Us

For Marketing, Sales and Subscriptions Inquiries
Rockefeller Center, 45 Rockefeller Plaza
20th Flr Unit #5, New York, NY 10111
United States

Conference List

The Effect of Outsourcing on Anglogold Ashanti Obuasi Mines Performance

Kofi Owusu Yeboah


Charles Boateng


Josephine Amponsem


Erick Kwaku Attefah

Kofi Owusu Yeboah 1

Charles Boateng 2
Josephine Amponsem 3
Erick Kwaku Attefah 4

  1. Spiritan University College, Ejisu School of Business, Ejisu, Ashanti, Ghana 1

  2. Spiritan University College, Ejisu, Ashanti (Head, School of Business), Ghana 2

  3. AngloGold Ashanti, Obuasi Mines, Ashanti, Ghana 3

  4. Department of Accountancy, Kumasi Polytechnic, Ghana 4

Pages: 184-203

DOI: 10.18488/journal.62/2015.2.8/

Share :


Competition in the modern world has forced organisations to adopt innovative ways to create value. The world has embraced the phenomenon of outsourcing and companies have adopted this principle to help them expand into other markets. Tactical management of subcontracting is perhaps the best instrument in management, and subcontracting of innovation is its frontline. The purpose of this study can be summed up as assessing outsourcing in Anglogold Ashanti Obuasi mines. This study adopted the descriptive research approach. Questionnaire was administered to staff of outsourcing department. One hundred (100) employees of AngloGold Ashanti Obuasi Mines were sampled. Quantitative data analysis technique (such as Mean, Standard deviation, confidence level, frequency, and simple percentages) and qualitative data analysis technique such as content analysis will be used to analyse collected data. Some of the activities that are outsourced are; transportation of employees to and from work, haulage of mine ore, residence maintenance, and purchase and contract unit are outsourced. In addition information technology, human resource, and management services are not outsource. It was also found out that outsourcing helps to: cut down cost; focus on core activities; generate competitive advantage; transfer operational risk; achieve efficiency and economies of scale; access expertise that is lacking in-house; and save valuable time. However outsourcing does not help AngloGold to expand and that the major reason for outsourcing at AngloGold is to help the company to focus on core activities. It was discovered that outsourcing of activities at AngloGold Ashanti Obuasi mines has not always achieved the stated objectives.

Contribution/ Originality
This study contributes to the existing literature by evaluating the effect that outsourcing has had on the financial and non-financial operations of gold mining companies in West Africa region from the perspective of one of the largest gold producers in the world, Anglogold Ashanti Obuasi mines.



  1. Adler, P., 2003. Making the HR outsourcing decision. MIT Slogan Management Review, 45(1): 53-59.
  2. Arbaugh, J.B., 2003. Outsourcing intensity, strategy, and growth in entrepreneurial firms. Journal of Enterprise Culture, 11(2): 89-110.
  3. Belcourt, M., 2006. Outsourcing - the benefits and the risks. Human Resource Management Review, 16(2): 269-279.
  4. Bender, P., 1999. Cashing in on competition. Outsourcing Journal, 12(1): 1-3.
  5. Bielski, L., 2004. The case for business process outsourcing. American Bankers Association, ABA Banking Journal, 96(5): 43-45.
  6. Bourassa, 1998. Outsourcing IT. CMA Magazine, 72(4): 6-12.
  7. Bustinza, O.F., D. Arias-Aranda and L. Gutierrez-Gutierrez, 2010. Outsourcing, competitive capabilities and performance an empirical study in service firms. International Journal of Production Economics, 126(2): 276–288.
  8. Carolyn, S., 2010. Impact of outsourcing of jobs on organizational effectiveness. Available from [Accessed 4th February 2013].
  9. Cicek, I. and B. Ozer, 2011. The effect of outsourcing human resource on organizational performance: The role of organizational culture. International Journal of Business and Management Studies, 3(2): 131-144.
  10. Cooke, F.L., J. Shen and A. McBride, 2005. Outsourcing HR as a competitive strategy? A literature review and an assessment of implications. Human Resource Management, 44(4): 413-432.
  11. Cooper, C.L., 1999. Can we live with the changing nature of work. Journal of Managerial Psychology, 14(7): 569-572.
  12. Corbett, M.F., 1999. Multiple factors spur outsourcing growth. Outsourcing Journal, 4(2): 1-6.
  13. Dobbs, L., 2004. Exporting America: Why corporate greed is shipping American jobs overseas. New York: Time Warner Book Group. pp: 1-123.
  14. Donahoe, D.N. and M. Pecht, 2003. Are U.S. jobs moving to China? IEEE Transactions on Components and Packaging Technologies, 26(3): 682- 686.
  15. Drezner, D.W., 2004. The outsourcing bogeyman. Foreign Affairs, 83(3): 22-34.
  16. Ellram, L. and A. Maltz, 1997. Outsourcing: Implications for supply management. Tempe: CAPS Research.
  17. Elmulti, D., J. Grunewald and D. Abebe, 2012. Consequences of outsourcing strategies on employee quality of work life, attitudes, and performance. Journal of Business Strategies, 27(2): 178-203.
  18. Elmuti, D., 2003. The perceived impact of outsourcing on organizational performance. American Journal of Business, 18(2): 1-4.
  19. Elmuti, D., J. Grunewald and D. Abebe, 2010. Consequences of outsourcing strategies on employee quality of work life, attitudes, and performance. Journal of Business Stratejies, 27(2): 33-42.
  20. Engardio, P., 2006. The future of outsourcing: How it's transforming whole industries and changing the way we work. Business Week, 39(69): 50-58.
  21. Eyaa, 2000. The keys to successful outsourcing. Procurement News, 3(1): 48-50.
  22. Farrell, D. and J. Rosenfeld, 2005. US offshoring: Rethinking the response. McKinsey Global Institute. Available from [Accessed 24th February 2013].
  23. Foster, T.A., 1999. Lessons learned. Logistics Management and Distribution Journal, 38(4): 67-69.
  24. Freeman, D., 2001. Survivor reactions to organizational downsizing: Does time ease the pain. Journal of Occupational and Organizational Psychology, 74(2): 145-164.
  25. Giardini, A. and R. Kabst, 2008. Recruitment process outsourcing: A scenario study on the acceptance of outsourcing in peronel selection. Zeitschriftfür Personnal Forschung, 22(4): 370-387.
  26. Gilley, K.M. and A.A. Rasheed, 2000. Making more by doing less: Analysis of outsourcing and its effects on firm performance. Journal of Management, 26(4): 763–790.
  27. Guterl, F., 1996. How to manage your outsourcer. Datamation, 42(5): 79-83.
  28. Hamel, G. and C.K. Prahalad, 1994. Competing for the future, Boston. Harvard: Business School Press.
  29. Hira, R. and A. Hira, 2005. Outsourcing America. New York: American Management Association.
  30. Jasper, W., 2003. Your job may be next. New American, 19(5): 28-29.
  31. Jeans, P., 2008. Strategic sourcing: Benefits, problems and a contextual model. Management Decision, 40(1): 26 – 34.
  32. Johnson, B.C., J.M. Manyika and L.A. Yee, 2005. The next revolution in interactions. McKinsey Quarterly, 5(20): 20-33.
  33. Kakabadse, N. and A. Kakabadse, 2003. Outsourcing best practice: Transactional and transformational considerations. Knowledge and Process Management, 10(1): 60-71.
  34. Klepps, R. and W. Jones, 1999. Effectively managing the outsourcing relationships. European Journal of Business and Management, 5(15): 8-14.
  35. Kotabe, M., M.J. Mol and J.Y. Murray, 2008. Outsourcing, performance, and the role of e-commerce: A dynamic perspective. Industrial Marketing Management, 37(1): 37?45.
  36. Kubr, M., 2002. Management consulting a guide to the profession. Geneva: International Labour Organization.
  37. Lee, R.P. and D. Kim, 2010. Implications of service processes outsourcing on firm value. Industrial Marketing Management, 39(5): 853-861.
  38. Li, X. and I. Barnes, 2008. Proactive supply risk management methods for building a robust supply selection process when sourcing from emerging markets. Strategic Outsourcing: An International Journal, 1(3): 252-267.
  39. Littler, C. and J. Benson, 2002. Outsourcing and workforce reductions: An empirical study of Australian organizations. Asia Pacific Business Review, 8(3): 16-30.
  40. Manzi, 2004. Outsourcing and the make or buying question. O’Donnell,1998. The ABCs of Outsourcing, Software Magazine, , 18(19): 40-45.
  41. McCracken, B., 2002. New report: Most small businesses save significant sums through HR outsourcing. Outsourcing Center. Available from [Accessed 23rd February 2013].
  42. McIvor, R., 2008. What is the right outsourcing strategy for your process. European Management Journal, 26(1): 24-34.
  43. Musico, C., 2008. Worldwide outsourcing market to grow 8.1% in '08. CRM Media, a Division of Information Today, Inc  Available from destinationcrm.Com [Accessed 3rd March, 2013].
  44. Narigisi, M., 2012. Impact of outsourcing on organizational performance: The case of century bottling company limited. Bachelor Degree Thesis, Makerere University.
  45. Ndubisi, N.O., 2011. Conflict handling, trust and commitment in outsourcing relationship: A Chinese and Indian study. Industrial Marketing Management, 40(1): 109-117.
  46. Outlay, C. and C. Ranganathan, 2005. Exploring the downside of IT outsourcing: Outsourcing tactics, layoffs, and organizational outcomes: Americas Conference on Information Systems (AMCIS) - AMCIS 2005 Proceedings. pp: 20-27.
  47. Quinn, B.J., 2000. Outsourcing innovation: The new engine of growth. Sloan Management Review, 41(14): 13-23.
  48. Rao, M., 2004. Key issues for global it sourcing: Country and individual factors. Information Systems Management. Available from EBSCOHost database [Accessed 2nd February 2013].
  49. Robson, C., 2002. Real world research. 2nd Edn., Oxford: Blackwell. pp: 1-100.
  50. Saunders, M., P. Lewis and A. Thornhill, 2007. Research methods for business students. 4th Edn., Essex England: Pearson Education Limited. pp: 34-102.
  51. Sinderman, M., 1995. Outsourcing gains speed in corporate world. National Real Estate Investor, 37(8): 42-50.
  52. Stonecipher, H., 2004. Outsourcing: The real issue. Executive Excellence, 15(4): 6-9.
  53. Woolson, D. and K. Speckhals, 2001. Has outsourcing gone too far. McKinsey Quarterly, 4(24): 25-37.
  54. Yang, D.H., S. Kim, C. Nam and M. Ja-Won, 2007. Developing a decision model for business process outsourcing. Computers & Operations Research, 34(12): 3769 – 3778.


Google Scholor ideas Microsoft Academic Search bing Google Scholor


Competing Interests:


Related Article

( 1 ) Relationships Between Leadership Roles and Project Team Effectiveness as Perceived by Project Managers in Malaysia
( 2 ) Relationships among Team Trust, Team Cohesion, Team Satisfaction and Project Team Effectiveness as Perceived by Project Managers in Malaysia
( 3 ) The Effects of Exchange Rate Liberalization in Kenya on French Beans Exports
( 4 ) Does the Mena Countries May Converge in GDP to Southern European One? The Effects of International Trade
( 5 ) Can the Interdependence Effect and the Contagion Phenomena be Related with One Another?
( 6 ) Corruption’s and Democracy’s Effects on Economic Growth
( 7 ) Effective Tax Administration and Institutionalization of Accounting Systems in Small and Medium Scale Enterprises: Evidence from Nigeria
( 8 ) Moderating Effect of Demographics on Monetary Motivation and Employees Job Performance Relationship: Evidence from Malaysia
( 9 ) Consideration the Effects of Water Sector Investment on Economic Growth in Iran
( 10 ) Influence Internship Learning Effect in Business Service Sector: Using Internship Self-Efficacy as the Mediator Variable
( 11 ) The Effect of Selected Financial Ratios on Profitability: An Empirical Analysis of Listed Firms of Cement Sector in Saudi Arabia
( 12 ) An Empirical Test on Effect of Intra-Product Trade on Regional Income Distribution: The Case of Liaoning, China
( 13 ) Effects of Advertising on Consumer Behavior in Low Density Houses: The Case of Marlborough, Zimbabwe
( 14 ) Moderating Effects of Project Management Experience, Project Team Size, Project Duration and Project Value Size on the Relationship between Project Manager’s Leadership Roles and Project Team Effectiveness in Malaysia
( 15 ) The Effects of Changes in Accounting Standards on Value Relevance of Financial Statement Information of Malaysia and Nigeria Banks
( 16 ) The Effect of Outsourcing on Anglogold Ashanti Obuasi Mines Performance
( 17 ) Organisational Politics – Causes and Effects on Organisation and Employees
( 18 ) The Mediating Effect of Market Orientation on the Relationship between Entrepreneurial Orientation Dimensions and Organizational Performance: A Study on Banks in Libya
( 19 ) Confirming the Mediation Effect of A Structural Model By Using Bootstrap Approach: A Case Study of Malaysian 8th Grade Students’ Mathematics Achievement
( 20 ) Land Use/Land Cover Change and its Effects on Bamboo Forest in Benishangul Gumuz Region, Ethiopia
( 21 ) Emotional Workgroup Performance and Group Effectiveness Egyptian Context
( 22 ) The Effect of Public Debt on Domestic Product and Unemployment (An Empirical Study on the Palestinian Economy)
( 23 ) The Effect of Exchange Rate Changes on Consumer Prices in Nigeria: Evidence from VECM Model
( 24 ) The Effect of Access and Quality of Education on Economic Development in Botswana
( 25 ) Effect of Media Transportation and Advertising Transportation on Customers Responsiveness
( 26 ) The Effect of Personal Factors on the Customer Rating of the Quality of Services of the Islamic Banks Operating in the Syrian Coast
( 27 ) Does the Holiday Effect Differ from Religious to Non-Religious Holidays? Empirical Evidence from Egypt
( 28 ) Effects of Environmental Satisfaction on Family Displacement Case Study: Gohar Dasht Region, Karaj City
( 29 ) Effect of Budget Defict on Private Investment in East African Community for the Period 1981-2015: A Panel Data Analysis
( 30 ) Comparative Analysis of the Effectiveness of Coub-Douglas, Real Business Cycle, and Keynsian Growth Models in Determining Economic Growth in Nigeria
( 31 ) Effects of Corporate Social Responsibility on Banks Financial Performance in Nigeria: A Study of United Bank of Africa
( 32 ) The Effects of Exchange Rate Variability on Trade Flows in Nigeria: A Cointegration Analysis
( 33 ) The Effect of Work-Life Balance on Accounting Ethics
( 34 ) The Moderating Effect of Governance Mechanisms on the Relationship Between Innovation Strategy and the Performance
( 35 ) Effect of Institutional Factors on Foreign Direct Investment in Nigeria
( 36 ) An Evaluation of Effectiveness of Oversight Committees: A Case of City of Johannesburg, Section 79 Committees
( 37 ) The Effect of Internal and External Factors of Companies on Profitability and its Implications on Stock Price Index of State-Owned Banks
( 38 ) Africa's Human Capital Development: Is Public Finance Management an Effective Strategy?
( 39 ) Analysis of the Effects of Pull and Push Factors on Brain Drain: An Example of Turkey
( 40 ) The Effect of Selected Factors on Tax Revenue Mobilization in Ethiopia: The Case of Amhara Region
( 41 ) The Mediating Effect of Financial Self-Efficacy on the Financial Literacy-Behavior Relationship: A Case of Generation Y Professionals
( 42 ) Study on the Effect of Foreign Investment on Anhuis Industrial Structure Optimization
( 43 ) Activity Cost Management and its Effect on Enterprise Productivity
( 44 ) Effects of Socio-Cultural Diversity on the Performance of Private Health Care Organizations in Kogi State
( 45 ) Analysis of Effect of Profitability, Capital, Risk Financing, the Sharia Supervisory Board and Capabilities Zakat in Islamic Perspective with Circular Approach Causastion on Islamic Banks in Indonesia
( 46 ) The Effect of Corporate Social Responsibility Disclosure on Corporate Financial Performance
( 47 ) Issues of Unemployment in Nigeria: Effect of Real Exchange Rate and Inflation Interaction
( 48 ) How can Female Executives Shape the Effectiveness of Executive Compensation?- A Multi-Dimensional Approach
( 49 ) The Effectiveness of the Production of Healthy Rice in Comparison with other Rice Varieties in the Upper Northern Region of Thailand
( 50 ) Externality Effects of Sachet and Plastic Bottled Water Consumption on the Environment: Evidence from Benin City and Okada in Nigeria
( 51 ) Evaluating the Effectiveness of CAPM and APT for Risk Measuring and Assets Pricing
( 52 ) Effect of Brand Enhancement on Buying Behavior towards the Sport Sponsorship Companies in Riyadh, KSA
( 53 ) Investigating the Environmental Effects of Economic Growth in African Economies
( 54 ) Effect of Savings Deposit Rate on Stock Market Capitalization in Nigeria: An Empirical Investigation
( 55 ) The Effects of Visual Merchandising and Price Sensitivity on Impulse Purchase Behaviour among Young Apparel Shoppers in Bangladesh
( 56 ) The Effects of Macroeconomic Variables on Bank Default: A Case Study in Brazil
( 57 ) Likely Effect of Gender and Education on Information Adoption and Utilization among Sugarcane Farmers in the Nyanza Region, Kenya
( 58 ) Non-Linear Effects of Intellectual Property Rights on Technological Innovation: Evidence from Emerging and Developing Countries
( 59 ) The Effect of Disruptive Factors on Inventory Control as a Mediator and Organizational Performance in Health Department of Punjab, Pakistan
( 60 ) International Financial Reporting Standards Adoption and Earnings Management: The Fundamental Effect Framework
( 61 ) Effect of Tax Administration on Tax Revenue of States in African Countries: Evidence from Nigeria
( 62 ) The Effect of Capital Structure Decisions on Profitability of Quoted Consumer Goods in Nigeria
( 63 ) Creative Marketing and Innovative Branding: An Effective Way to Attract Customers
( 64 ) Modelling Stock Returns Volatility and Asymmetric News Effect: A Global Perspective
( 65 ) The Effects of The Covid-19 Pandemic on Exploitative and Explorative Strategies of Pharmaceutical Industries in Brazil
( 66 ) IT Governance as Drivers of Dynamic Capabilities to Gain Corporate Performance Under the Effects of Environmental Dynamism
( 67 ) Relational Capabilities under Moderating and Mediating Effects to Understand their Impacts on Firm Financial Performance
( 68 ) Effects of Green Human Resource Management on Employee Green Behavior: Moderating Role of Employee Environmental Knowledge
( 69 ) Human Research Management: Effect of Covid-19 On Workers in the UK Who Have Previously Lost One or Both Arms
( 75 ) Improved Performance Through Empowerment of Small Industry
( 76 ) Teachers Characteristics and Students’ Performance Level in Senior Secondary School Financial Accounting
( 77 ) Conceptual Framework of Green Infrastructure Performance Evaluation for Local Authority
( 78 ) The Association Between Corporate Risk Disclosure and Firm Performance in Emerging Country – The Case of Egypt
( 80 ) Stock Market Performance and Economic Growth: Evidence from Nigeria Employing Vector Error Correction Model Framework
( 81 ) The Influence of Information Technology and Communication Supply Chain Management Performance for Greater SME Manufacturing in Aguascalientes
( 82 ) Leveraging Telematics for Optimal Fleet Performance
( 83 ) Share Options, Share Award and Firm’s Performance: Evidence from Malaysian Public Listed Companies
( 86 ) The Investment Performance of Socially Responsible Investment in Japan
( 87 ) Appointment of Directors and Performance of Deposit Money Banks in Sub Saharan Africa: Do We Need More Executive or Non-Executive Directors?
( 89 ) The Indirect Impact of Overconfidence on the Performance of Tunisian Firms Through their Financing Structure
( 90 ) How the Principles of the Sharing Economy Can Improve Organizational Performance of the US Public School System
( 91 ) Relevance of Stakeholders Theory, Organizational Identity Theory and Social Exchange Theory to Corporate Social Responsibility and Employees Performance in the Commercial Banks in Nigeria
( 92 ) The Influence of Communication, Work Motivation and Career Development on Elementary School Teacher’s Job Performance in Medan, Indonesia
( 95 ) Electronic Banking Innovations and Selected Banks Performance in Nigeria
( 96 ) An Empirical Investigation into the Key Drivers of Economic Performance in the CEMAC Zone: A Panel Corrected Standard Errors Approach
( 97 ) The Impact of Organisational Culture on Public Sector Performance: A Case Study of Local Authorities in Zimbabwe
( 98 ) Gamification on Sales Force Performance in Nigeria Bottling Company
( 99 ) An Investigation of the Impact of Organisational Structure on Organisational Performance
( 100 ) Exploring the Asymmetric Linkage between Commodity Prices and Fiscal Performance in Nigeria
( 102 ) Organizational Memory and Employee Performance in Federal Parastatals in Enugu State of Nigeria