EFFECTIVENESS OF MANAGEMENT OF OUTSOURCED INTERNAL REVENUE COLLECTIONCONTRACTSINLOCALGOVERNMENTAUTHORITIESIN TANZANIA

Abstract

The intention of this study was to assess the effectiveness of management of outsourced internal revenue collection contracts in local government authorities particularly of the City Council of Dodoma. The study used the following specific objectives, to examine if contract terms of outsourced internal revenue collection contracts at the City Council of Dodoma cover associated risks,to evaluate the level of performance of outsourced revenue collectors at the City Council of Dodoma in adhering contract terms and the last was to evaluate if outsourced revenue collectors at the City Council of Dodoma have tools and competencies for revenue collection. The study used descriptive survey research design and the mixed research approach. Quantitative data were collected through questionnaires and qualitative data were collected through interviews from the population of 41 respondents. This study used all 41 respondents since the target population were convenient and manageable. Quantitative data were analysed through descriptive statistics (Frequency and percentages) while qualitative data were analysed through content analysis. Findings indicated that the contract terms that guarantee effective revenue collection for outsourcedrevenuecontractattheCityCouncilofDodomawerewellknownandwereeffectivein revenue collection since it covered associated risks in number of ways. The findings further indicatedthattoahigherextenttheoutsourcedrevenuecollectorsattheCityCouncilofDodoma adhere contract terms. This helped the outsourced revenue collectors in meeting revenue collection targets set in the contract. The study further revealed that point of sale machine (PoS) was an essential and effective tool used by the outsourced revenue collectors. The conclusion was made that the outsourced revenue collection was one of the essential means of revenue collection in the City Council of Dodoma. The study also concluded that through the use of contract terms for outsourced revenue collectors guaranteed effective revenue collection in the City Council of Dodoma. It was further concluded from the study that the contract terms for outsourced revenue collectors at the City Council of Dodoma were friendly that is why they adhered them. The use of PoS and other corrective measure were useful in ensuring that the outsourced revenue collectors meet the target and adhere to the contract terms. The recommendation was made that the City Council of Dodoma should from time to time review the outsourced revenue collectors so as to align with the current revenue collection needs. It was recommended that more awareness and training should be conducted regularly for the revenue collectors to be able to collect revenues effectively ,meet the targets and adhere to the contracts. It was also recommended that follow-ups should be made to ensure that outsourced revenue collectors have competent personnel. The study recommended that online models of revenue collection and management should be strengthened by making close follow ups to PoS operators for effective revenue collection at the City Council of Dodoma.