Challenges of hotel outsourcing in Ghana: A transaction cost perspective

Abstract

Outsourcing is one of the many business strategies adopted by hotels due to the many opportunities that it provides. These opportunities notwithstanding, there are teething challenges with outsourcing. This study sought to find out from hotel managers in the Accra Metropolis of Ghana some of the challenges they face with outsourcing from a transaction cost perspective. Eight in-depth interviews were conducted in six hotels that outsourced. After capturing and transcribing data, a three-tier coding system was employed to group responses under thematic networks. The global themes that emerged within and across cases were inductively analysed. It was realised that poor quality of outsourced staff, lack of product knowledge by hoteliers, monopolistic tendencies by a few outsourcers, lack of commitment on the part of outsourced staff and cost involved in outsourcing were some of the challenges faced by the hotels in the Accra Metropolis of Ghana.

Keywords

• accommodation
• Accra Metropolis
• Ghana
• outsourcing