Outsourcing Phenomenon of Food Services - Essay Example

As such, the organization does not have to deal with food problems that may arise; the problems can be solved by the company providing services. The other reason why outsourcing food service has become a common phenomenon is that one organization can have expertise in providing food services while the other can be an expert at the management of a cafeteria. Food services have also become the commonly outsourced function because backup support is provided for the program, as well as the food service team. For example, the company contracted to outsource can provide extra services at no extra cost; this includes expertise for a special function that an organization needs.

Organizations in the hotel industry also outsource food services because the company contracted to provide such services provides high-quality food at an affordable price. Foodservice outsourcing has also become common since the manufacturer guarantees the production of nutritionally safe food, high-quality products, and food of a high standard. Cost savings and labour efficiency, which come with outsourcing food services, can be regarded as another reason why the outsourcing of food services has become common. The other reason for outsourcing food services is that it allows for price flexibility. Food services are also outsourced since they allow for increased information on nutrition, especially about menu offerings.

There are several advantages of outsourcing food services, which accrue to the management contractor. First, contract manufacturing of food services allows clients to have access to up-to-date processes and infrastructures involved in manufacturing. The other advantage is that it helps the management contractor in the management of day-to-day schedules, packaging, production, and management of labour services. The outsourcing of food services also allows the management contractor to diversify, as well as evaluate the market performance of the product. The other benefit includes offering an opportunity for versatility and flexibility. Outsourcing food services also provides the management contractor with capital, which can be used in development, research, advertising, marketing, as well as other crucial business functions.