Demand and supply of FM outsourcing services

Abstract

Purpose

The purpose of this paper is to address the structure of the category on client-provider outsourcing relationship in relation to facilities management (FM). The paper aims to rank different outsourcing relationship types according to importance with respect to the four critical FM drivers including co-ordination, quality, competence and adequacy.

Design/methodology/approach

The survey design and measures operationalising the constructs allow the use of the analytic hierarchy process (AHP), a technique that tests FM outsourcing in a contingent approach such as a decision processing model. In the questionnaire surveys, a series of structured questions is designed. FM experts used the AHP methodology to analyse the FM outsourcing relationship types.

Findings

The model of the FM outsourcing strategies presented in the paper shows four main FM drivers at FM practice through the priority ratios of outsourcing relationship dimensions for different FM outsourcing contracts as derived by the AHP discussed by clients’ and service providers’ points of views. The result of a survey from the Hong Kong’s higher education industry reveals that the FM service providers can understand the needs of the clients in FM outsourcing contracts, including building maintenance, cleaning and catering. Hence, the service providers’ expected outsourcing performance will be good in these contracts. However, FM service providers do not understand the needs of FM clients in the FM outsourcing security contracts. Thus, the service providers’ expected outsourcing performance in such contracts will be poor. To improve the outsourcing relationships between the FM stakeholders, service providers must understand their clients’ needs to develop appropriate outsourcing strategies.

Originality/value

Understanding on the demand and supply of FM outsourcing services is now crucial for effective FM on outsourcing relationships between clients and service providers in higher education sector. The examination of current and prediction of future outsourcing relationships between the stakeholders to match the FM services significantly influence FM outsourcing success. This paper provides an intriguing insight into how the demand and supply of FM services can be successfully and strategically implemented into the FM outsourcing relationship in Hong Kong’s universities and tertiary institutions.

Citation

Lok, K.L. and Baldry, D. (2016), "Demand and supply of FM outsourcing services", Journal of Facilities Management, Vol. 14 No. 3, pp. 221-248. https://doi.org/10.1108/JFM-07-2015-0024