Abstract

(1) Background: Generally, firms are reluctant to report outsourcing failures, no matter what industry they operate within. To eliminate poor performance of outsourced service providers, it is necessary to establish a specific outsourcing relationship model for facilities management (FM). The purpose of this paper is to study the concept of outsourcing relationships in relation to FM and to investigate the design of the critical success factors on sustainable outsourcing strategies through a discussion of four dimensions (ownership of FM assets, control of FM assets, competitive position and long-term plan). (2) Methods: Based on two questionnaire surveys, data were collected from 38 clients and 34 service providers. The study evaluated the FM outsourcing strategies from critical success factors in educational facilities in Hong Kong. (3) Results: This study explains the impact of FM outsourcing strategies on Hong Kong’s four commonly outsourced FM contracts including building maintenance, security, cleaning and catering from the clients’ and service providers’ point of view. (4) Conclusions: This is the outsourcing way forward in order to create a better working environment conducive for all the parties that would result in better sustainability of FM’s future and thus impact the economic objectives of sustainable development, in parallel with adding social and environmental value.

Highlights

  • With regards to facilities management (FM) assets transferred by clients, the results presented in Table 5 indicate that the means of respondents range from 3.34 to 3.82 on the various items relating to control of various FM assets transferred by clients

  • The results show that clients and service providers have different points of view on the most significant factor influencing the outsourcing strategies in the four FM contracts

  • Clients and service providers must understand the implications of effective outsourcing strategies because the outsourcing services can be improved in a sustainable approach through comprehensive design on outsourcing strategies

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Summary

Introduction

The construction industry has long been a powerful engine for Hong Kong’s economic growth, the industry experienced a drastic reduction in workloads and a change in market structure following the Asian economic turmoil in 1997 [1]. It appears that regional FM outsourcing services for the built environment have become more common. Outsourcing services include computer-integrated FM, catering/vending, moves management, project management (for both major and minor works), services installation (i.e., mechanical, electrical) and cleaning or security services [2].

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