A Study on Assessment of Outsourcing and its Decision Making by Hotel Housekeeping Department in 4-Star and 5-Star Hotels of Delhi NCR

Abstract

The trend of outsourcing has brought a new era in business management. Non-core activities are handed over to the external expertise and organizations focus on core activities and competencies to increase their competitive advantage and manage costs. The decision of what is a core activity and what isn’t to an organization is the most difficult task, the decision might not be same for all departments of a hotel. The current study investigates the outsourcing in housekeeping department and its trend as well as the factors influencing decision of outsourcing and what all influences the selection of activity to be outsourced. The objective of the study is to identify the functions being outsourced, the factors influencing outsourcing decision of services and the effects of outsourcing and its challenges in the housekeeping department. A structured questionnaire survey was chosen to assess the factors and the sample population were the 4 star and 5-star hotels of Delhi NCR. The housekeeping department employees were the respondents and a total sample of 300 was chosen for the study. The data was analyzed through quantitative techniques. The study findings revealed that outsourcing was already being practiced by majority of hotels and the factors influencing decision of outsourcing were to cut costs, increase flexibility, improve profits and high quality of service. Outsourcing shall be a beneficial process for hotels if proper decision making is conducted beforehand and a proper market research is done to choose a vendor