Hospitality Industry, which majorly consists of hotels and restaurant chains and related services, is one of the largest service industries in the world. Most countries in Africa have realized that the development of hospitality industries is also important for economic diversification. The study assessed the influence of strategic alliances on growth of hotel industry in Eldoret town, the headquarters of Uasin Gishu County in the North Rift region of Kenya. Based on the study this paper explores the effects of outsourcing on growth of hotel industry. The study adopted a descriptive survey research design with a target population of 220 in the hotel industry in Eldoret town. A sample of 112 respondents was drawn proportionately from four categories of hotels using stratified random sampling technique. A semi-structured questionnaire was administered to collect the required data. Data was analyzed using both descriptive and inferential statistical techniques with the aid of a computer software known as Statistical Package for Social Sciences (SPSS) version 20. Multiple regression analysis was used to analyze the data. The study found that outsourcing had contributed to increased hotel sales, profits, product/service quality and reduction of costs. It was therefore recommended that hotel managers need to understand the benefits as well as the challenges that come with outsourcing. The findings of the study will be of benefit to hotels with limited resources and exposed to growth opportunities as they will be able to appreciate the role of outsourcing in leveraging on large firms’ resources for profitability, growth and expansion.
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