Globalized service providers’ perspective for facility management outsourcing relationships: Artificial neural networks

Abstract

Purpose

The Contingency Outsourcing Relationship (CORE) model originated from the Four Outsourcing Relationship Types (FORT) model and the CORE model is used in the globalized facility management (FM) industry while the FORT model is originally used in the global information technology industry. The purpose of this paper is to analyze the CORE model through the rankings of relationship between a client and a globalized FM service provider from the perspective of the FM service provider in one of the four categories (i.e. in-house, technical expertise, commitment and common goals) and the application of this model with the aid of artificial neural networks (ANNs).

Design/methodology/approach

A quantitative methodology using a survey is used to analyze the four types of outsourcing categories. First, the background theory and a set of rules of the CORE is introduced and discussed regarding the proper ways to identify the rankings collected from the survey.

Findings

The study reveals that an interesting understanding of the outsourcing categories can be systematically implemented into the FM outsourcing relationships through the methodology of scientific artificial intelligence. FM outsourcing categorization may help to define the appropriate relationship; as either not too aggressive or too passive.

Originality/value

The outcome generated from the ANN can be considered a strong and solid reference to assess and define the existing outsourcing relationships between the stakeholders and the service providers with the goal to assign an outsourcing category to the service provider based on the learnt rules.

Citation

Lok, K.L., So, A., Opoku, A. and Song, H. (2021), "Globalized service providers’ perspective for facility management outsourcing relationships: Artificial neural networks", Management Decision, Vol. 59 No. 1, pp. 134-151. https://doi.org/10.1108/MD-01-2019-0102