The benefits of Outsourcing facility services when selecting right service provider for a hotel:Case Kämp Group Oy

Abstract

This research paper examines about the outsourcing of facility services in the Kämp group of hotels. The scope of the study includes Facility Management, outsourcing facilities services, and the selection process of the service providers for a hotel. The research was carried at the hotels of Kämp group Oy in the Metropolitan Area of Helsinki. Facility management includes wide ranges of non-core functions such as Property management, real estates, design and technology. Activities such as security, safety, cleaning, maintenance, space management and all other activities such as quality, operations are included in the business of facility management. Hotels outsource non-core functions in order to be cost effective, task effective and profitable.Outsourcing services works as a tools for innovation and changes from skilled manpower. It helps in gaining a competitive advantage. Based upon the above areas the research is carried out. The researchers used both theoretical as well as practical sources in order to find the solution for the research problems.

The objective of the research was to investigate the benefits of outsourcing facility services in a hotel in terms of the 3C factors namely “Core business, Competitive advantages and Cost effectiveness, which were examined in addition to quality and security. While being critical about the disadvantages of outsourcing facility services in hotel to some extent. In this paper, the researcher review the procurement process, selection criteria’s and features offered by service provider in order to clarify the research problem.

The study uses qualitative and quantitative research methods. As a qualitative research an interview was conducted with the selected manager if the client hotel. As a quantitative research method an online survey was conducted through the platform E-lomake(electronic questionnaire platform from the (Laurea website).The focus group for the survey consist of staffs and supervisors who have professional expertise ,knowledge’s, skills about the outsourced services I client hotels. Electronic questionnaires were sent with help of the Facility manager to all employees working in the client hotels in different departments.

The findings of the research shows that outsourcing facility services brings positive impacts and adds values to the core business of the hotel. Cost saving is the primary reason to outsource.Other factors such as core business, gaining competitive advantages comes as a secondary reason to outsource facility services in a hotel. There are more positive impacts from Outsourcings facility services in a hotel, if the right service-providers are chosen. The service-provider should have enough resources to conduct daily operation, goodwill in the market, and be able to deliver a quality service at an affordable price.