Advantages and Disadvantages Of Outsourcing in Hotel

Outsourcing in Hotel Advantages and Disadvantages

Below are some of the services which is most commonly outsourced by the hotel

  • Laundry
  • Pool maintenance
  • SPA and Health Club
  • Saloon
  • Housekeeping
  • Equipment maintenance
  • PR and marketing
  • Revenue management
  • Information technology
  • Reservations / Call Centre / Central Reservations
  • Project management
  • Loyalty programme management
  • Online Distribution management

Advantages Of Outsourcing:

  • Outsource non-core activities and spend more time concentrating on the core business processes.

  • Offshoring gives the business access to professional, expert and high-quality services.

  • The organization can experience increased efficiency and productivity in non-core business processes.

  • The company can streamline its business operations.

  • Offshore outsourcing can help the business save on time, effort, manpower, operating costs and training costs, giving it overall cost advantage.

  • Outsourcing can make the organization more flexible to change.

  • Experience increased control of the business.

  • Save on investing in the latest technology, software and infrastructure and let the outsourcing partner handle the entire infrastructure.

  • Get the assurance that the business processes are being carried out efficiently, proficiently and within fast turnaround time.

  • Offshoring can help the organization save on capital expenditures.

  • By outsourcing, the company can save on team management problems as its offshore partner will be managing the team who does the work.

  • Cater to the new and challenging demands of the business’s customers.

  • Free up the cash flow of the company.

  • Share the business risks.

  • Give the business a competitive advantage - increase productivity in all the areas of the business.

  • Outsourcing can help the organisation cut its operational costs by 50% if not more.

Disadvantages Of Outsourcing:

  • While outsourcing services such as payroll processing services and tax preparation services, the outsourcing provider will be able to see the company’s confidential information and hence there is a threat to security and confidentiality in outsourcing.

  • When a company begins to outsource its business processes, it might find it difficult to manage the offshore provider when compared to managing processes within its organisation.

  • Offshoring can create potential redundancies for the organisation and the employees might express lack of interest or lack of quality at work.

  • The outsourcing provider might not be providing services only for one particular organization.

  • Since the provider might be catering to the needs of several companies, they will not be able to give a particular company 100% attention.

  • Outsourcing, though cost-effective, might have hidden costs, such as the legal costs incurred while signing a contract between companies.

  • The company might also have to spend a lot of time and effort in getting the contract signed.

  • With outsourcing, the organisation might suffer from a lack of customer focus.

  • There can be several disadvantages, such as renewing contracts, misunderstanding of the contract, lack of communication, poor quality and delayed services amongst others.


@hoteltalk very nice and detailed article must be ready by all hoteliers :+1: :+1: :+1:

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