OUTSOURCING OF FACILITIES MANAGEMENT IN INDUSTRIAL PROPERTIES

Abstract

In today's competitive markets and technology-driven environment, change is inevitable. In addition, the uncertain business climate and an increased focus on cost reduction have caused many corporations to consider outsourcing of as the optimal solution. This study attempts to fill the research gap on outsourcing of facilities management since it is not emphasized in the local context. The survey results showed an increasing trend towards outsourcing of the FM functions. Majority of the respondents managed their facilities management function in-house but either outsourced tasks separately or bundled certain outsourced activities/services. In addition, a considerably large percentage (between 11% and 50%) was spent on FM outsourced activities/services against the annual FM operating budget by a substantial proportion of the respondents. A distinctively high proportion of respondents (88%) had no intention to outsource the entire FM function and among it only 30% felt partnering with a FM service provider as a viable option. The findings from this study will prove informative to both corporations and service providers involved in outsourcing facilities management functions. It offers relevant information on the general trends of facility management, type of services that are being outsourced and gain an understanding of what are the evaluation tools employed by the respondents.