DEFINING “OUTSOURCING” AND“CONTRACTS”

Outsourcing is a ‘conscious business decision to move internal work to an external provider’.
 A contract can be defined as ‘an agreement between two parties negotiating a business deal’.
 Both these terms are now being used interchangeably.
 However, while all outsourcing involves a contract, all contracts are not necessarily related to outsourcing.
For instance, you can have internal staff (that is,employees) on contract as well.
Some of the first processes to be outsourced in hotels include janitorial, security, and catering services.

WHEN ARE OUTSOURCED SERVICES CONSIDERED?

The services of contract cleaners will be used in two broad types of situation:
1. To carry out general accommodation and cleaning services where management considers that the use of a specialized company will be more economic, management and staff do not have sufficient expertise and/or it is preferably not to be responsible for the day to day administration of this aspect of
their activities.

2. To carry out specialized or periodic cleaning tasks where specialized skills and equipment are unavailable and it is uneconomical to teach staff specialized skills or purchase
specialized equipment.