Antecedents and Consequences of Contract Out Services of Various Star Category Hotels in Bengaluru

Naresh Nayak,Narayan Prabhu,Senthilkumaran.P,Ragini Arora

The study is conducted to investigate and analyse the effects of outsourcing over organizational performance among the hotels based on their star categories in Bengaluru (India). Comparing the outsourcing decisions among various hotels based on their star rating enabled us to find out the activities currently being outsourced in hotels. Data was collected through a survey using closed ended questionnaire. Among the managers a response rate of 249 was received. This study illustrates that outsourcing reduces the workload of the operational departments. Further the results concluded that improvement in assets and profits, room sales and employee satisfaction has a strong significance with cost factors. Positive antecedents directly correlates with the outsourcing and its influence on organisational performance. Managers believed that outsourcing is a cheaper option to perform operations as compared to the same operations performed by hotel staff. Among the negative antecedents managers and decision makers believe that once a decision to outsource a particular activity is made and implemented, it cannot be reversed back.

Volume 11 | 02-Special Issue

Pages: 2185-2196