Outsourcing is a widespread trend in the Indian Hotels. Currently many non-core competencies like laundry, security services, IT, Maintenance services are being contracted out by the hotels to the external service providers, who are capable of providing these services efficiently in line with the hotels objectives and the guests satisfaction. Hotels are focusing more on their core activities such as food and beverage operations, food production; revenue management etc. through outsourcing hotels receives expertise, latest technologies, latest trends and practices from its outsourcing partners and an increase in the guest satisfaction by saving a lot of cost through outsourcing. But outsourcing also comes with many challenges, since many employees perceive outsourcing as negative and a threat to their jobs and career progress. Outsourcing also impacts an employee’s morale. The study aims to analyze the effects of outsourcing in the hotel and lodging sector and assess workers' attitudes about outsourcing. The research will emphasize the best approaches that may be implemented to efficiently handle outsourcing.

KEYWORDS: Outsourcing, Hospitality Industry, Employees’ Perception, Impact of Outsourcing.