Dubem I. Ikediashi, Stephen O. Ogunlana, Prince Boateng and Onuwa Okwuashi
The purpose of this study is to analyse the risk factors associated with outsourcing of facilities management (FM) services.
Abstract
Purpose
The purpose of this study is to analyse the risk factors associated with outsourcing of facilities management (FM) services.
Design/methodology/approach
The study administered questionnaires on 146 registered members of International Facilities Management Association (IFMA), Nigeria chapter, who carry out their professional practice in Lagos, Nigeria. The survey, conducted in February, 2011 targeted facilities managers, property managers, maintenance officers and procurement officers cutting across the three levels of management. A total of 61 of them returned valid questionnaires, giving a response rate of 41.8 percent.
Findings
Findings reveal that “poor quality of services” was rated the most critical risk factor associated with facilities management outsourcing, while “security” and “inexperience” closely followed in that order. Also, there was no significant difference in the rankings of the stakeholders on more than 75 percent of the factors.
Research limitations/implications
Most practitioners would have been left out of the survey due to non‐registration with IFMA due to the seeming novelty of facilities management practice in Nigeria.
Originality/value
This paper provides an unambiguous empirical‐based analysis of outsourcing risks from the perspective of facilities management practice in Nigeria.
Details
Keywords
Dubem Ikediashi and Onuwa Okwuashi
The purpose of this paper is to investigate and conceptualise significant factors influencing decision to outsource facilities management (FM) services in Nigeria’s public…
Abstract
Purpose
The purpose of this paper is to investigate and conceptualise significant factors influencing decision to outsource facilities management (FM) services in Nigeria’s public hospitals.
Design/methodology/approach
Data for this study were collected using a cross-sectional questionnaire survey. A total of 85 responses were received from the six states comprising the study area while 11 of them were discarded due to missing data resulting in 74 usable responses. This gave an overall response rate of 61 per cent. Data collected were analysed using descriptive and inferential statistics as well as principal component analysis.
Findings
Findings revealed that 25 of the 31 factors were significant in explaining the decision to outsource FM service in Nigeria’s public hospitals; while 15 of them grouped into six broad categories were selected based on their factor loadings during further analysis. Besides, it was also established from the study that “to improve performance standard”, “to improve quality of services” and “to improve timely delivery of services” are the top three rated factors.
Research limitations/implications
The study complements the body of knowledge on “make or buy” decision theory by provided empirical insight into key attributes of outsourcing decision motives for FM services from the point of view of Nigeria’s public sector spectrum that can serve as benchmark for deciding on whether to outsource or not.
Practical implications
The study also has practical implications. More is now known as a result of this research about what factors constitute drivers for outsourcing FM services within the context of Nigeria’s public hospitals. With an aggregate opinion from 74 public hospitals, the study provides hospital administrators and public managers with a list of prioritised factors for making rational informed decision about outsourcing of services in the hospitals.
Originality/value
The study complements the body of knowledge on “make or buy” decision theory by providing empirical insight into key attributes of outsourcing decision motives for FM services from the point of view of Nigeria’s public healthcare.
Details
Keywords
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…
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.
Details
Keywords
This paper aims to test the nine corollaries concerning the determinants of outsourcing relationship dimensions, strategic manoeuvres, clients’ and service providers’ evaluation…
Abstract
Purpose
This paper aims to test the nine corollaries concerning the determinants of outsourcing relationship dimensions, strategic manoeuvres, clients’ and service providers’ evaluation regarding outsourcing category and outsourcing relationship types.The paper has the purpose of reviewing the concept of outsourcing in relation to FM, dealing with service providers’ performance and its effect on clients before providing a comprehensive discussion of outsourcing.
Design/methodology/approach
A conceptual approach is adopted, suggesting that a study of outsourcing relationship between clients and service providers from these theoretical perspectives is used to develop corollaries about the relationships between the strategic manoeuvres identified and the different dimensions of outsourcing relationship. The corollaries are examined using non-parametric tests.
Findings
The model of the facilities management (FM) outsourcing relationships presented in the paper shows performance of outsourcing services through evaluation of outsourcing categories on current and future FM contracts of clients and service providers. As a template of outsourcing relationships, the model is the context for predicting the important outsourcing categories to the future four FM outsourcing contracts, such as building maintenance, security, cleaning and catering. On prediction of those FM contracts, there is an inclination to the types of in-house and technical expertise on category of FM outsourcing relationship types from clients, whilst there is an equal inclination to the type of in-house outsourcing category from service providers.
Originality/value
Management on outsourcing relationships between clients and service providers is now essential for effective outsourcing in FM. This paper provides an intriguing insight into how the effect of outsourcing relationships can be strategically implemented into the performance of service providers.