Abstract

The management problems of Facilities Management (FM) outsourcing relationships occur because of provision of low quality analytical, managerial, cooperative, and professional services. On selection, the ideal service providers for specific FM outsourcing contractual procurement needs is of paramount importance to achieve high quality FM services. This paper aims at reviewing the concept of outsourcing in relation to facilities management and dealing with the importance of outsourcing success. Factors of outsourcing strategies from the perspectives of clients and service providers are examined and analysed through the Delphi technique in Hong Kong. The results reveal four main drivers of FM practice through evaluation of thirty-five outsourcing critical success factors identified by clients and service providers. Evaluation of the critical success factors from FM drivers shows that there is an inclination towards FM competence, measurement of performance, cost effectiveness, etc. from clients, whilst there is an inclination to the core skills, measurement of performance, allocation of human resources, cost effectiveness, customers’ satisfaction, etc. from service providers. The result of the study reveals an interesting understanding that the impact of outsourcing critical success factors can be strategically implemented into the outsourcing strategies in Hong Kong’s FM practice.

Highlights

  • The latest investigation of outsourcing in different industries focuses on financial and economic perspectives

  • The top critical success factors were selected if at least 50% of experts selected them in this round of the Delphi survey

  • Specific Facilities Management (FM) competence required for specialist facilities Measurement on performance Cost effectiveness Co-ordination between the facilities manager and functional units on operational level

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Summary

Introduction

The latest investigation of outsourcing in different industries focuses on financial and economic perspectives. Further discussion of the FM sector, the clients’ and service providers’ relationship, or the nature of their operational and management elements is key. Many business problems in the built and human environment are mostly accepted to be solved by the ideal use of high-quality facilities To operate such facilities, some proponents agree outsourcing procurement as an effective and efficient approach, as is currently widespread in many industries to manage resources [8,9,10,11,12,13]. Many organizations usually do not consider the effects of performance of outsourced service providers on business success. It is often unclear how the type of outsourcing relationship affects business success. It is anticipated that the clients’ requirements for sustainable outsourcing services can be satisfactory through the efforts of the service providers

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