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Benefits of Outsourcing Catering Services

Outsourcing is the purposeful allocation of some business processes or systems and delegating their implementation to a third party. It is logical to define the distinguished business processes as those that the organization implements with the least professionalism. Unlike service and support services, which are of a one-time, episodic, random nature and are limited to the beginning and end, functions are usually outsourced. They can be professional support for the uninterrupted operation of individual systems and infrastructure on the basis of a long-term contract. The presence of a business process is a distinguishing feature of outsourcing from various other forms of service provision and customer service.

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Foodservice employee loyalty or disloyalty can be addressed by aligning their interests with the management’s ones. It is important to outsource a certain aspect of the business operations by ensuring that the service provider’s success is reliant on the client’s trust. Employee loyalty especially relevant in foodservice because both regulatory agencies and customers are highly sensitive to low-quality and incompetent service (Banerjee et al., 2019). The local market, product, and producer vulnerability can be addressed by properly selecting the management company. It needs to possess a strong and resilient structure and a history of high-quality service delivery. In the case of patient or customer demands, the management company needs to be willing to cooperate with its clients. Any sudden change in resident direction might create a different set of needs, which can be dependent on the outsourced business operations. Therefore, the required changes need to be integrated by communicating and cooperating with the company.

One can also choose a self-operation approach by hiring a food service director and other relevant employees and supervisors. The loss of economies of scale can be handled by focusing on profit reduction or non-manufacturing-based price element decrease. However, the most likely outcome is the increased price of the final product or service, which might be compensated with proper marketing techniques that justify a higher pricing model. In order to stay on top of trends and new market shifts, the limitations of the operations need to be considered. Effective assessment will be necessary to make the minimal changes in the production, which would follow the trend to some extent. The success will be measured by the overall output of the food service operations, which could be outsourced to other parties.

Lastly, different operations or industry segments might be better suited to one or the other. For example, university foodservice should be outsourced to third parties because the university operations are fully incompatible with such a service. In a similar fashion, many company cafeterias fall in the same category as the previous example, where the organizations perform better if they outsource foodservice (Banerjee et al., 2019). The given business is highly sensitive and has little to tolerance for incompetence and low-quality service. Therefore, it is justifiable for a third party company to take on the task due to its primary focus being targeted at foodservice.

In conclusion, outsourcing is the transfer of any activity from one company to another for a long period of time, and all business processes can be the subject of the outsourcing. Outsourcing is often transferred to the conduct of any non-core activities of the organization, which can be carried out by independent forces. However, significant and strategic functions of the company can also be outsourced depending on the market conditions dictating the effectiveness over ownership.


Banerjee, A., Hanna, R., Kyle, J., Olken, B. A., & Sumarto, S. (2019). Private outsourcing and competition: Subsidized food distribution in Indonesia. Journal of Political Economy, 127(1), 1-75. Web.

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