Influence of Outsourcing Strategy on Performance of Three to Five Star Hotels in Nairobi City County

Abstract

Companies all over the world are experiencing stiff competition from their competitors. To gain a competitive edge; they need to be flexible and innovative in their modes of operations. Globalization has driven many organizations to widen their resources and capability enhancement from internal environmental practices to greater heights. Attention is increasingly shifting towards external collaboration and networking outside the boundaries of the organization. This requirement has become essential in order to be competitive locally and across the borders. As to achieving this, organizations need to have strong upstream and downstream integration of their elaborate network of business relationships. As companies seek to enhance their competitive positions in an increasingly global marketplace, they are discovering that they can cut costs and maintain quality by relying more on outside service providers for activities viewed as supplementary to their core businesses The main aim of this study was to carry out a study on the influence of outsourcing strategy on the performance of three to five star hotels in Nairobi County. A descriptive research design was used to evaluate because the main interest was to explain a viable relationship. The target population in this research design was all the three to five star hotels in Nairobi County. There are twenty six three to five star hotels in Nairobi County. The unit of analysis was the purchasing manager. The data collection instrument was structured questionnaire containing both open ended and closed ended questions. The data obtained was analyzed using statistical package for social sciences and descriptive statistics for example the measures of central tendency and measures of variation. The finding found out that outsourcing has an influence on increased customer satisfaction, capacity of innovation and flexibility ,reduced cost and improved quality of service; organizational competiveness and increased sales turnover and profitability, recommendation is made on improving outsourcing methods as well as identified gaps for future research,