OUTSOURCING APPLIED TO CONTRACTOR QUANTITY SURVEYING FUNCTION AND ITS ASSOCIATED COSTS AND BENEFITS

Abstract

Recently, outsourcing is acknowledged as an alternative approach to achieving various business advantages. There are many reasons that companies outsource various jobs, but the most prominent reason seems to be the fact that it often saves money. Hence, the aim of this study is to examine how outsourcing can be applied more actively in contractor’s quantity surveyor context. It seeks to assist contractor quantity surveyor in identifying the reasons and potential activities for outsourcing to achieve higher profit margin. The hypothesis of this study argues that by taking the advantages of outsourcing, the application of this concept into contractor quantity surveying function could be adopted as means to effect rapid, change and improve contractor business results. The needs and potential activities for outsourcing are identified and proposed. In order to obtain a complete understanding of whether using external resources could meet contractors’ need better, costs and benefits associated with outsourcing are taken into consideration. The research methodology includes literature reviews, questionnaires sent to the contractors/quantity surveyors and interviews with selected respondents as an exploratory study. It is found that outsourcing quantity surveying activities is well accepted as alternative to remain competitive in Singapore construction industry. Contractors view outsourcing as a cost-cutting opportunity and recognize outsourcing’s value as a means to managing variable demand from the rest of the business. Also, the survey result reveals that cost-saving and better service performance remains primary consideration for outsourcing quantity surveying function. This implies that the managerial application of outsourcing is not restricted to a short-term solution for cost savings, but can potentially be thought of, and used as, a strategic mechanism to drive productivity in organizations.