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

 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 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)

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.


Adams, N. and Brownsword, R. (1999) Understanding Law. Sweet & Maxwell, 2nd Ed


Drucker, F. (1999) Management Challenges of the 21st Century. New York: Harper Business.


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