The Nexus of Outsourcing Services and Profitability: Evidence from Hotel Industries in Nigeria

Abstract This present study ascertained the effect of outsourcing services strategies on the profitability of Hotel industry in Nigeria. The study employed Ex post facto research design for the study. A sample of three hotels industries in Nigeria was used and data were collected from annual accounts of these three hotels and hypotheses were tested using regression analysis with aid of e-view version 9.0. The study revealed that outsourcing of advertising services has positive effect but not statistically significant on profitability of Hotel industry in Nigeria; outsourcing legal services has negative effect but not statistically significant on profitability of Hotel industry in Nigeria and outsourcing technology services has positive effect but not statistically significant on profitability of Hotel industry in Nigeria. Based on the findings, the study recommended among others that electronic means of advertising services should advance for the new and existing products and services of the organization in order to enhance his or her customers patronage. Keywords: Advertising Services, Legal Services, Technology Services and Profitability