ABZ Company is a virtual company in the hotel industry that is expanding aconsiderably high rate. As a result, the management of the hotel is overwhelmed with thegrowth in the scale of productions. Additionally, ABZ Company is considering to outsourcecustomer care representatives to monitor its social media platforms and market the company’sproducts on social media. This is due to the intended expansion of the company and the factthat the hospitality industry has a high employee turnover. Also, ABZ does not have theinternal capacity to effectively manage social media marketing because the company’semployees are more concerned with the technical operations of the hotel. The employeeretention rate for ABZ is at 40%. This means that the company is incurring high costs in therecruitment and training. According to Lacity et al. (2011), outsourcing has yielded more than279 billion and the authors expect the figures to grow at a rate of 25% since 2011. However,
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ADVANTAGES OF OUTSOURCING BUSINESS OPERATIONS3many companies do not have enough knowledge of the benefits of outsourcing as a businessprocess. As a result, most managers do not outsource some of their activities due to thefeeling that it may not solve the challenges that they are facing (Radlo, 2016). The majorproblem facing ABZ Company is ineffective customer care. As a result, this research aims toprovide the management of ABZ with knowledge on outsourcing. In addition, this research
Business process outsourcing, Outsourcing Business Operations
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