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Outsourcing and in sourcing.

Discuss Facility Planning, Advantages and Disadvantages of
Outsourcing and in sourcing.

Outsourcing is the current trend in most management and operation activities of most companies.
This is due to its flexibility, convenience and the indirect cost savings associated with it.
Outsourcing refers to delegation of non-core processes or functions to other companies,
organizations or other external specialists in their area of service while refers to a situation where
an organization or a company decides to develop or to utilize some of the functions within its
own departments to perform certain specialize tasks.
Insourcing and Outsourcing, benefits and disadvantages
The major benefit of retaining the services of the security functions as part of the functions of the
organization (in sourcing) is that the company retains control over the core services. Insourcing
the security services ensure control and effective coordination of personnel and also the
operations of security issues. Concessions can also be handled by a specialized team in the
organization and which will reduce the costs of subcontracting the process to other independent

Business – Facility Planning

firms. Parking can be managed by a section of the administration and the security department to
avoid outsourcing the services. The management can be more flexible in its management as
insourcing involves the utilization for internal department services or processes to perform the
core services. Custodial/housekeeping for a 20000 multipurpose arena will involve the
employment of over one hundred employees. These may prove to be costly to maintain and also
challenging to manage. But the major advantage of insourcing is that the labor force for a 20000
multipurpose arena may be high and the management can also make use of this labor force in
different sections or department hence cut down on average cost that may have been required to
outsource the different services. (Drucker, 1999)
Outsourcing may be expensive but to maintain a multipurpose arena may require the services of
specialized units that can all be available from organization that provide such services. Security
and concessions for such a large facility requires trained staff with a wide range of experience
and skills. The custodial and housekeeping services also requires trained staff and with
experience to maintain a large facility. Outsourcing these services may eventually be economical
and convenient for an organization. The main company does not have to grapple with the
problems of staff welfare, employee absenteeism, strikes or unions. These problems are handled
by the subcontracted companies.
Legal expertise requirement for sports facility manager
The manager of the sports facility needs the general knowledge of fundamental business law that
covers the law of contract, law of tort and negligence. These laws are the basis of legal
knowledge that the manager may have to be conversant with and which may prove to be helpful
in his job. (Adams and Brownsword, 1999)

Business – Facility Planning

When making orders and concessions, the manager requires legal knowledge in contract
formation and the principles of offers and acceptance. In case of injuries suffered in the arena,
the manager has to be aware of the provisions and the effects of the law of negligence and the
duties of care. The manager has to be educated and have knowledge of employment Act and the
general provisions of the basic business law.

Drucker, F. (1999) Management Challenges of the 21st Century. New York: Harper Business.
Adams, N. and Brownsword, R. (1999) Understanding Law. Sweet & Maxwell, 2nd Ed

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