OUTSOURCING IN THE HOTEL INDUSTRY: A MANAGEMENT ACCOUNTING PERSPECTIVE Dawne Lamminmaki B.Comm (Concordia), MBA (Bradford), CMA (Canada) School of Accounting and Finance Outsourcing is a business strategy that moves some of an organization’s functions, processes, activities and decision responsibility from within an organization to outside providers. “It’s been harder to penetrate the market here,” McNamara says. A college degree isn't required, but housekeepers should … As this shows, the outsourcing market is growing in Chapter 3 will focus on the topic housekeeping. The housekeeping department ensures a clean, comfortable guest room for all hotel guests. In fact, 52% of facility managers claim savings from outsourcing housekeeping and custodial operations, more than 50% of companies outsourcing have saved money, and one-third have seen an improvement in quality. According to Jani-King Canada’s national general manager, Robert McNamara, outsourcing of housekeeping services has not been as popular here as it is in the United States and Europe. 5. Pros Explained . In this chapter the effects and costs of both internal housekeeping and outsourced housekeeping … It's up to housekeeping to make beds, freshen towels and toiletries, and remove rubbish from each guest room. Improves company focus: By outsourcing less important tasks, you increase the company's focus on tasks that are deemed more vital. Outsourcing has become a major market activity, with Gartner forecasting the IT Outsourcing market alone to reach $287 billion in 2013. By outsourcing certain campaigns or processes on to experts in their respective fields, you will benefit from their enhanced ability to plan and mitigate potential risks. As one might imagine, outsourcing piecemeal work is almost always going to be cheaper than hiring permanent full time staff. Let’s explore some of the advantages and disadvantages of outsourcing. Outsourcing Outsourcing is when any operation or process that could be – or would usually be – performed in-house by an organisation’s employees is sub-contracted to another organisation for a substantial period. Carr and Nanni (2009) define outsourcing as the assignment of core services or operations of an organisation to another organisation or vendor that specialises in that area of service or operation. Outsourcing is currently relatively popular with both profit-seeking and Outsourcing is the practice of passing individual tasks, subareas, or business processes over to a third-party and thereby receiving the results from outside of your own company. Hsiao, Pai, and Chiu (2009) simply define outsourcing as contracting another company or person to perform a particular function. When it comes to hotel housekeeping, the first aspect to consider is who will do the cleaning. Outsourcing is the business practice of contracting with an outside party to take care of certain tasks instead of hiring new employees or assigning those tasks to existing staff. The definition of housekeeping will be explained and some basic information about the typical works included in housekeeping was researched. It's a popular way for businesses to lower operational costs and streamline operations while … You Can Reduce Costs. Reduces and controls operating costs: Outsourcing is often cheaper than hiring on an employee, and it also takes away some level of uncertainty about costs.The contract will determine exactly what will get done and for what price. With an annual growth rate of 6.5% until 2017, average annual IT Outsourcing investment has reached almost 25% of total IT spend. Here are some additional reasons why contract cleaners can … The outsourced tasks can be performed on-site or off-site.

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