The managed service business

I. Discuss why food services are the most commonly outsourced function in the business community. The reason why food services are the most commonly outsource function in the business community is because it would be very costly for businesses if they would do the food services themselves especially if this is not their core business. Providing food service is a very complex operation that does not only involve the preparation of the food itself but also entails acquisition of the raw materials, personnel, equipment among others just to make the food available. This is not only costly for the business, but also time consuming and inefficient especially if a business is not aligned with food.
On the other hand, it would be very cost effective, efficient and convenient if food services will be outsourced because all it takes is doing business with a catering company where the business requirements for food services are specified for the catering/outsourced company to provide. All they have to do is pay the outsource company and they will be freed from the inconvenience and complexity of sourcing raw materials, cooking them, presenting them, maintaining personnel and equipment among others. Basically, outsourcing the food service to a third party will allow the business to focus its energy, resources and expertise on its core business for it to become more competitive in the business it is engaged in.
II. Describe the advantages of outsourcing food services to a management contractor.
The most obvious advantage of outsourcing food services to a management contractor is convenience and cost efficiency. The function of a management contractor is already very demanding which takes a lot of time, energy and resources and the company would be better off if they will focus on their core business. If they will add the food service to their function, this will take away time, energy and resources from them which could have been used in other things such as focusing on their business.
In addition, it would be more efficient if a caterer or a business company would handle the food service since this is their core business and therefore has the competency to do it better. A food caterer will require less time, effort and resources to provide the food service than if the management contractor will do it themselves.
Additionally, the business will also be saved from the complexity of dealing with another operation which could have been the food service but instead will only deal with a company’s representative.
III. Explain the unique aspects of food service operations that drive these advantages.
Food service operations are laborious, time bound and risky. It is another business competency that is better left to be done by another business that has the expertise to do it. It involves acquisition of raw materials, preparation to serving the foods to maintenance of equipment to managing people. It is aggravated by the fact that foods cannot last long in inventory and therefore, very vulnerable to spoilage which could be costly to a business organization. An outsource food company or caterer can do this very well at the least cost and effort which made it attractive for other business to avail because it will free them from the burden of doing the service themselves and instead focus on their core business.