Abstract:
This research tried to find the factors affecting to BPO (Business Process
Outsourcing) decision in Sri Lankan Hotel Industry. Further the study expected to
identify the activities which were highly possible for outsourcing decisions. By
employing the resourced based view (RBV) as a theoretical basis, this study identified
two important factors that lead to outsourcing decision in companies in hotel sector.
It does so by describing some basic assumptions of the resource-based view. Two
factors are proposed as determinant for outsourcing decision. They are company core
competence and capability. Literature claimed that both of these two factors play an
important part in the decision-making process in selecting an external provider for
organizational activities. Sample consisted of six hotels which are ranked as 3-5 stars.
Semi-structured interviews were used to gather primary data and the secondary data
was obtained from relevant published reports written on evaluating the factors and
areas of activities for outsourcing in the hotel industry. The executive categories of
staff members who are responsible in making outsourcing decisions were
interviewed. Finally, it was concluded that the factors: core competence and
capability have a significant impact on the BPO decision and the hotels have been
concentrating on their non-core functions such as hotel housekeeping and food and
beverage, laundry and IT as possible outsourcing areas of activities. The study
suggested managerial implications and future research directions
