1. To outsource business functions and services is:

a. When you contract out a business function, a particular task, role or process, to a third party over a substantial period of time

b. Employing additional Labour for a function

c. Employing the services of a company to undertake the full running of the housekeeping department

d. Employing an outsider to do maintenance job

2. The benefits from outsourcing can be considerable, can you recognize them? Which one is true?

a. A number of variable costs become fixed costs

b. Delivery of service is totally covered and the company does not need to handle any service problems

c. Business may gain a competitive advantage, by allowing the business to adopt a more flexibility approach to its delivery

d. Company does not need to consider market conditions

3. If all activities are kept in-house what benefits can there be?

a. Good communication in-house

b. Best use of resources

c. A lot cheaper than outsourcing

d. Service is provided by a dedicated source directly employed by the in-house organization

4. Outsourcing process companies of the following steps:

a. Strategy, tender documents tender process

b. Definition of service, review of current arrangements identification of stakeholders

c. Schedule of requirements, service level agreement and conditions of contract

d. Tenderer briefing and assessment, preliminary actions, advertising and pre-qualification

5. What are the potential pitfalls of losing direct control through outsourcing?

a. Management changes at the outsourcing company leading to tension in the organisation

b. Volatile and seasonal nature of demand for hotel services

c. Potential loss of communication

d. Customers think you do not care

6. What motivation factors are there for hotel outsourcing?

a. It is easier to monitor the output of an employee than that of an independent contractor

b. Hotels are motivated to outsource activities because they are large and the hotel can negotiate favorable outsourcing terms

c. Greater flexibility resulting from outsourcing as well as capital outlay avoidance resulting from outsourcing

d. Answer B and C are both correct

7. Which of the following is one of the preliminary steps to outsourcing?

a. Initial identification of functions(s) and/or services(s) to be market tested

b. Identification and position of stakeholders

c. Review of current arrangements

d. Identification of the implications of legislation affecting employment and procurement

8. When negotiating with a company to outsource:

a. The outsourcing company should outline how they would support the core business

b. Qualification considerations do not need to be a real issue when choosing a outsourcing company, recommendation is enough

c. Large outsourcing companies are the best

d. You should describe to the outsourcing company how they would be expected to support the core business

9. When will the degree of outsourcing be greater?

a. When the service is separated from the product

b. When service supplies firm has high capability of immediate responsiveness

c. When the business keeps total control of the function, though the outsource company undertakes the tasks

d. Answers A and B are both correct

10. What are the disadvantages of outsourcing to an organization?

a. Spending time on contract

b. Problems with transferring from outsourcing to incoming contractor

c. Lack of rapid response for incidents from outsourcing company

d. Answer B and C are both correct