ABZ Company is a virtual company in the hotel industry that is expanding a

Abz company is a virtual company in the hotel

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ABZ Company is a virtual company in the hotel industry that is expanding a considerably high rate. As a result, the management of the hotel is overwhelmed with the growth in the scale of productions. Additionally, ABZ Company is considering to outsource customer care representatives to monitor its social media platforms and market the company’s products on social media. This is due to the intended expansion of the company and the fact that the hospitality industry has a high employee turnover. Also, ABZ does not have the internal capacity to effectively manage social media marketing because the company’s employees are more concerned with the technical operations of the hotel. The employee retention rate for ABZ is at 40%. This means that the company is incurring high costs in the recruitment and training. According to Lacity et al. (2011), outsourcing has yielded more than 279 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 OPERATIONS 3 many companies do not have enough knowledge of the benefits of outsourcing as a business process. As a result, most managers do not outsource some of their activities due to the feeling that it may not solve the challenges that they are facing (Radlo, 2016). The major problem facing ABZ Company is ineffective customer care. As a result, this research aims to provide the management of ABZ with knowledge on outsourcing. In addition, this research
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  • Winter '15
  • Business process outsourcing, Outsourcing Business Operations

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