Outsourcing is an established approach which replaces a more traditional terminology ‘sub-contracting’. Additionally, (Meighem, 1999) describes ‘sub- contracting’ as procurement of a product, service or component which an organization is able to develop, whereas outsourcing concerns with procurement of a products, service or component which a firm is not capable to undertake internally at is not able to, or choose not to produce internally at the level of satisfaction. Outsourcing is an exercise which can be traced back to the tax collection process in Roma Age (Kakabadse, 2005). Outsourcing, which is often defined by the researchers by their research aims (Rodriguez-Diaz, 2008) (Tomás F. Espino?Rodríguez, 2008) is a “a business’s external provision of the services and activities, relying on a contract, that were before offered by using the sources in-house”.
Outsourcing process consists of one of the major strategies for decreasing operation costs in the hospitality organisations and tourism enterprises (Lam, 2005). In hospitality organizations, contract out is generally undertaken in the Front Office department (reservations and reception), Housekeeping department (laundry and cleaning of common areas and guest rooms), Kitchen (Purchasing and Delivery and Kitchen operations), F&B Service (Restaurants, Pubs and Bar), Maintenance (Plumbing services, Technical services, Garden and pool maintenance), Management (Administrating work, Training and Development, staff selection, Sales and marketing operations, IT operations), Recreational Activities, Hotel security and surveillance (Espino-Rodríguez, 2004). According to various researchers like (Gidro´n, 1998) and (McIvor, 2000), the desire of outsourcing is embracing an increasingly strategical profile, as a pursuit of short term goal achievement, particularly to decrease cost, collectively with a more strategic outlook with an intend to attain and maintain the competitive dominance. The major reason why organizations choose outsourcing is “make or buy”, which consists of focusing on the core capabilities, achieving adaptability, reducing costs and gaining benefits from the technological support.
The present outsourcing study scope can be recognized by three aspects: the outsourcing determinant ‘Why?’, the outsourcing procedure ‘How?’ and the outsourcing outcome “what did the organization gain?” (Jiang & Qureshi, 2006) . (al, 2004) presented that a great majority of the studies on outsourcing has concentrated on the understanding of outsourcing determinants and the decision making procedure, with very less on the outsourcing outcomes. There are various benefits associated with contract out such as focusing on the core operations, decreasing production costs, increased adaptability, and increased chances of collecting rents from the relationships with suppliers. In this context, a positive effect is related to contact out (Mol, 2009). Contrarily, the researchers debate how contracting out gives a rise to transaction costs for the management of operations performed by the external firms, modernizing and learning challenging ventures. Therefore, there is a negative effect on the efficiency of the organization. In other studies, it is impossible to detect a direction relationship between contracting out and efficiency as in (Rasheed, 2000) and (al L. e., 2002). As outlined by (Mol, 2009), the impact of the “make or buy” in organizational efficiency is still uncertain. In addition, there has been less research to date on the outsourcing organizations. (Ellram et al., 2004).
Outsourcing and job fulfillment plays a crucial role in the hotel industry. In accordance to (Kotler, 2007) “customer satisfaction is a person’s feelings of pleasure or disappointment resulting from comparing a product perceived performance (or outcome) in relation to his or her expectations”. Hence, a firm must be able to cater the services or products which can satisfy the needs/ wants of the clients so that customer satisfaction is achieved (Brandford, 2009) also recognized the significance of customer interaction with a satisfied sales employee. The quality of that communication could help an employee to boost his performance. Furthermore, other motivational and satisfaction aspects include varied jobs, generous colleagues and positive working environment (Bjerker, 2007). Employees agree that a positive and pleasant working environment provides in development of optimistic feelings and positive emotions. However, the reasons analysed by researchers are refined into different areas like extremely pressing and ardous jobs exacerbated by night shifts, absence of clearly defined scope of career and growth, disparity in attitudes and expectations between the employer and the employees,