The Effect of Outsourcing on Employment in Developing Countries (Case of Nigeria Banks)

This thesis is an evaluation of the outsourcing practice and employment relations in the Banking Industry. The employment relations and organizational performance have been the study in this project. Descriptive method research has been used in this study. The questionnaire distributed in the survey was a modified version of Hewitt’s Human Resource outsourcing Survey Questionnaire. The outcome of the analyses indicates that: the management of Banks engages in unacceptable labor practices that deprive workers of their conditions of services. By just shifting the human resource management to a third party will not guarantee the improve labor management relationships, performance of the employee are greatly affected by outsourcing in Nigeria. Positive relationship exists between employment relations and organizational performance etc. Recommendations made are that the Banks management: have to stop the unfair labor practices they do. The employees on contract working conditions must be improved and attention should be fostering employment mutual relations by making sure that all the human resource policies especially outsourcing are not counterproductive. Keywords: Outsourcing, Employment Relation.