Hiring vs. Outsourcing?

Thinking about outsourcing service staff? This is a big step for anyone in the hotel industry. But really what are we talking about here? The objective of any manager, especially in the hospitality industry, should be to reduce costs while maintaining or even increasing the quality of service. Taking this into consideration then, what are the pros and cons of taking such steps?

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Disadvantages

Let us first start with the negative. Inevitably, what most managers will fear is the loss of control, which then affects quality of service.

  1. Control: Managers have a need to know what’s going on in their hotel. With no control over employees, how is one to ensure quality?

  2. Quality of service: On top of this loss of control, is the question of quality. How is one to ensure standards are meet? Even more importantly, differences in nationality, language (accent), and culture can all be degrading to customer perception.

  3. Learning period: Inevitably, with every supplier will be a learning period. This will always be necessary as sufficient time is needed for knowledge transfer.


Considering the disadvantages, there is quite a few things that can go wrong. Mitigate these issues however, and you’ll find a whole host of advantages

Advantages

  1. Cost: This is normally the number one reason for most managers to consider outsourcing. Scheduling is more flexible, contracts are predictable and costs can be better controlled.

  2. Specialization: Having companies that specialize in a particular service can mean advantages for everyone. Competitive advantages of the company are lended to the customer. Smaller hotels can compete with larger companies with budget, in-house skills and technology be equaled out. More importantly however, is the fact is you have someone on the outside looking in. This helps hotels think outside the box and think proactively.

  3. Plug & play: If you’ve chosen your supplier correctly, then this should be a plug & play model. Hiring, training, or retraining.


There are both valid positives and negatives to outsourcing. That being said, it is extremely important to choose your suppliers correctly. Do it correctly and you’re more than likely to take full advantage of potential benefits. Join us next time for how to go about choosing the correct vendor.

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