Outsourcing in the Hospitality Sector – Issues & Perspectives

Module code: TH60041G
Tutor: Hilary Allen
Student number: 21122719

Outsourcing in the Hospitality Sector – Issues & Perspectives.
Nowadays, while companies are faced with increasing opportunity to outsource activities they need to make the right outsourcing decision. Although, there are many advantages for outsourcing, there are also risks and disadvantage in this practice. This essay will explain the term outsourcing and explain why organisations prefer to outsource some of its functions in today’s environment. This essay will try to analysis the advantage and disadvantage of the outsourcing process and its risks concerning the organisation in a first part, then an analyse will be made concerning the challenges to make the most desirable outsourcing contract and there solution will be highlight. In a final part this essay will discuss about the future of outsourcing industry. The word outsourcing could be explain as the contractual association with a specialised outside service provider for work usually done in-house. Outsourcing could also be defined as the utilisation of external agents to achieve one or more organisational activities (Jacques, V, 2006). According to Bromage, (2000), ‘Outsourcing is one of the most important management ideas and practices of the past 75 years’.
In the hospitality industry most companies decide to outsource for many reasons, such as strategic reasons, which are improve business focus, gain access to World-class capabilities, accelerate reengineering benefits, share risks. The other reason are tactical reasons such as, reduce or control operating costs, make capital funds available, generate a cash infusion outsourcing can involve the transfer of assets from the customer to the provider, and secure resources not available internally, companies outsource because they do not have access to the required resources within the organisation (Quoquam