Abstract

This study examined the effect of financial performance of Igara Grower Tea Factory. A
conceptual framework was developed relating outsourcing functions and indicators of
financial performance (Profitability, Return on investment, Return on equity, Earning per
share,). Simple random and purposive sampling techniques were used to select the
respondents. Cross sectional and descriptive research designs were used in the study to
collect data from the field. Qualitative and quantitative approaches were also used. Pearson's
linear correlation coefficient was used to determine the relationship between outsourcing
and financial performance of the factory. The findings from this research showed that
outsourcing has increased the level of financial performance of IGTF. From the study, the researchers concluded that outsourcing had an effect on financial performances when outsourcing is done; the financial performance of the origination improves. Likewise when the organization’s financial performance improves it enables the organization to donoutsourcing because then it has the financial capacity to meet outsourcing obligations.