Outsourcing is a very popular strategy among the hotels worldwide because of its capability to provide numerous benefits to the hotel like cost savings, competitive advantages, efficient operations, expertise in performing certain activities and the access to the latest technology. But despite many advantages the outsourcing is also known for posing many issues and challenges for the hotels such as inferior product and service quality due to lose of control over the operations, and outsourcing is also seen as impacting the perception and the motivation levels of hotel employees. An exhaustive examination of the existing literature on the practice of outsourcing in the hotel industry. This study conducts a broad analysis of the various benefits and difficulties linked with outsourcing in the hotel sector by going through pertinent literature. The study further showcases case studies of hotels that have successfully employed outsourcing strategies and others that have encountered difficulties. The study reveals that outsourcing provides advantages in terms of cost reduction and achieving access to specialized expertise. Nevertheless, hotels need to remain vigilant on the possible obstacles and device measures to assuage them. This includes thorough selection of outsourcing partners, effective interaction with employees, and continuous supervision and review of outsourcing contracts. This study is aimed at enhancing understanding of the advantages and difficulties linked with outsourcing in the hotel sector. It offers valuable insights for hotels planning the implementation of outsourcing as a strategic approach to enhance their working efficiency.