Application of outsourcing strategy in the hotel industry in Mombasa County Kenya
Abstract
Outsourcing is an important phenomenon in hotel sector. It is changing from a tactical to a
strategic perspective, with greater scope and relevance to improving individual competitiveness.
To survive economically today, organizations must transform themselves and their markets in an
ever daunting challenge to redefine the business world before it redefines them. To the end,
outsourcing has emerged as the single most powerful tool available to executives seeking this
level of business change.
According to Manuel and Thomas (2006), highly significant changes are currently taking place
in tourism, with a notable increase in competition between hotel companies and especially
between emerging and consolidated tourist destinations. The outsourcing of non-core activities
allows the hotel to increase managerial attention and resource allocation to those tasks that it
does best and to rely on management teams in other firms to oversee tasks at which the
outsourcing firm is at a relative disadvantage.
In Kenya, the tourism industry has not been spared by the current turbulence in the business
environment. The Kenyan hotels, especially at the Coastal strip, have been hard hit recording,
declining tourist arrivals. Hence the need to embrace outsourcing as a strategy, that can be used
to improve the management of the hotels to level out the environmental turbulence. The study
employed a descriptive survey design to establish the extent of outsourcing among the hotels in
the Mombasa County. The yielded results ascertained that outsourcing as a strategy is being
employed, thou partly. Hence, it is not possible to reap the full advantages of outsources, if not
fully implemented. There is need to look beyond the poor performance when a strategy fails to
yield the desired results and find out the root causes other than disbanding it all together.
Subject
Outsourcing strategyDescription
Thesis Master of Business Administration (MBA)