Outsourcing the Service Provider of Services in Hotels and its Impact on Hospitality Sector

Abstract

Purpose – The current empirical study examines the increase in level of outsourcing hospitality staff and assesses the collision between the staff and hotel belongingness variables that are positively related to emotional exhaustion and work disgruntlement level. Lack of belongingness from both the ends towards each other adversely affects by directly hitting on the major revenue generator i.e. the Guest. Findings show that Work-belongingness conflict negatively associates with job satisfaction. "Cost effectiveness” is just a module of out sourcing of staff that is not noticeably influenced by the work environment. ”Staff willingness to serve” has a higher persuade on guest gratification than any other service attitude. This study reveals chief areas where the out sourced hotel workers articulate their discontent.

Design/methodology/approach – The paper opted for the exploratory study using an elaborate questionnaire that was send to the hotels that have opted for outsourcing in Shimla. The close ended questionnaire targeted 200 samples included the employers, employees and guests of the hotels. The collected data was than quantified and each question analyzed through data interpretation and linkages.

Findings – The paper provides empirical insights about how the outsourcing of the service providers in the service industry affects the deliverance of the intangible product in the hospitality sector. It is suggested that Hotel Human Resource specially the ones in the guest contact needs to be treated with a bond of association to manoeuvre the growth of hotel industry with right attitude to serve.

Research limitations/implications – In view of the fact that the study is based on Shimla Hotels; it may not be the same in other parts of the country. Hence it cannot be globalised for all hotel employees across the country. This study also includes the freshers of the Hotels industry who are in the age group of 16- 20 years. Therefore, there is a margin that they would not have considered their profession and career critically at this point in time. The Hotels were disinclined in letting us talk to their guests so only a few hotels allowed the study. It is a possibility that the guests from other hotels may not feel the same.

Practical implications – The paper comprises of the consequences and causes for the emotional and physical fatigue of the hotel employees who lack belongingness at work place of a specific region of the country. However the infrastructure and the lifestyle of the workforce may differ in other hotels. Thus researchers are expected to branch out the analysis by executing the methodology in dissimilar market section.

Originality/value – This paper recognizes how the Outsourcing of the hotel employees affects the customer satisfaction level and classifies the weak points of the outsourcing vendor and the user hotel from the view point of the employee who in reality works.