The Impact of ‘IT’ Outsourcing on the Restaurant Industry

Abstract

This research examines the impact of IT outsourcing on Restaurants’ Operations within the United Kingdom (UK). The study employs the theory of Transaction Cost Economics (TCE) and Resource-Based View (RBV) to conceptualise a theoretical framework. Data for the study was collected from 100 respondents consisting of supply chain managers, IT managers and senior management team members from three Restaurant Operations in the UK. The respondents were purposively sampled in order to ensure that only staffs with the relevant knowledge were contacted. A case study research design was adopted.  Data was then analysed using both qualitative and quantitative techniques. The study established that  increase in operational efficiency and cost reduction are recorded as  benefits in IT outsourcing;  companies have not experienced any serious post-contractual problems  because they take the necessary safeguards to ensure that success is achieved in contracts; decision making is also the prerogative of top management and companies still talk about ‘giving out non-core functions in order to concentrate on  core competencies’ without giving the necessary attention to other costs associated with the process. It was therefore recommended that due diligence and critical thinking have to be done by all stakeholders to be able to avert and manage any challenge that may occur in the process of outsourcing in restaurants’ operations.