STRATEGIC OUT-SOURCING OF FACILITIES MANAGEMENT

Abstract

Since the evolution of modern facilities management, outsourcing has always been a popular practice in the industry. Companies and organizations all over the world are outsourcing services in bid to enhance their productivity and performance of their core business. However, as majority of facilities management services are outsourced in Singapore, there seem to be a lack in performance rendered by service providers in the industry. This dissertation is predominantly focused on understanding the current practices in the industry and discovering the major hitches of outsourcing in the industry. It is found that although majority of the organizations have services such as mechanical, housekeeping and security services outsourced to enjoy the benefits that can be reaped, there are cases whereby organizations are hesitant when determining if they should outsource due to hidden cost and quality problems they may face when outsourcing. In addition, key findings have shown that lack of customer focus is the main reason why performance standards are not met by service providers. This dissertation also seek to propose recommendations on how service providers should operate so as to boost the productivity and performance of the organization they are serving.