Description:
Outsourcing occurs when a company uses an outside firm to provide a necessary business function which would otherwise have been done in-house. It is a strategic management strategy of transferring part of the business process to another company.
The hotel industry in Sri Lanka is crucial because of its direct link to the tourism industry. Tourism contributes substantive percentage of the GDP. Customer satisfaction is the most important part to attract more customers. It should maintain the least possible cost in operations. This requires hotels to change the way they do business in order to remain competitive.
In Sri Lanka outsourcing is popular in the hotel industry and selecting an activity to be outsourced is a most critical decision since there are a number of factors to be considered prior to making a decision. The relative importance of each factor when selecting an activity for outsourcing has not been identified for the Sri Lankan context.