OUTSOURCING OF PROPERTY AND FACILITIES MANAGEMENT - A PERSPECTIVE FROM BUILDING OWNERS AND DEVELOPERS

Abstract

"Do what you do best, outsource the rest" -- Tom Peters It is imperative for all enterprises to indulge in strategic management to its entire component of business. Developers, often an enterprise, would focus its main attention to its core business in property development. Feasibility studies would be carried out to determine the decision of new investment initiatives. Recent facilities management methodology has moved to greater heights in standards and has formed an integrated coverage of full estate management in long term approach. Hence, developers have to concur in early stages of the project investment on the decision of in-house or outsource of facilities management, which is an inevitable and necessary phase of the development. Outsourcing is a management technique to assign peripheral functions to outside organization (Hidaka, 1999). This study examines the relevance and applicability of outsourcing of property and facilities management from the developers' position. It will assess the considerations a developer would have undertaken prior to concurrence of outsourcing. An integrated and theoretical approach would shed some light in ascertaining whether it is a good move and ultimately the best investment decision. The findings would be informative to developers-to-be to ascertain whether outsourcing of property and facilities management is worthwhile and justifiable and ultimately the right approach.