The Challenges of Sustainable Development on Facilities Management Outsourcing Services: An Investigation in Educational Facilities

Abstract

(1) Background: Generally, firms are reluctant to report outsourcing failures, no matter what industry they operate within. To eliminate poor performance of outsourced service providers, it is necessary to establish a specific outsourcing relationship model for facilities management (FM). The purpose of this paper is to study the concept of outsourcing relationships in relation to FM and to investigate the design of the critical success factors on sustainable outsourcing strategies through a discussion of four dimensions (ownership of FM assets, control of FM assets, competitive position and long-term plan). (2) Methods: Based on two questionnaire surveys, data were collected from 38 clients and 34 service providers. The study evaluated the FM outsourcing strategies from critical success factors in educational facilities in Hong Kong. (3) Results: This study explains the impact of FM outsourcing strategies on Hong Kong’s four commonly outsourced FM contracts including building maintenance, security, cleaning and catering from the clients’ and service providers’ point of view. (4) Conclusions: This is the outsourcing way forward in order to create a better working environment conducive for all the parties that would result in better sustainability of FM’s future and thus impact the economic objectives of sustainable development, in parallel with adding social and environmental value.

Assessment of facilities management sourcing approaches in hotels in Ghana: a study of selected hotels in Wa

“…For instance, Atkin and Brooks (2015), and posit that, using an in-house sourcing approach or strategy helps building owners avoid paying huge service fees to FM service providers. In support, Lok et al (2021) in an attempt to model the disadvantages of not using an in-house FM sourcing approach, revealed that this approach is sometimes less expensive than outsourcing.…”

“…They suggested that outsourcing certain services such as waste management, catering and landscaping result in better cost and satisfaction. Subsequently, Lok et al (2021) and Lok et al (2018) added that residential building owners in Hong Kong in the 1990s chose to outsource because an in-house FM sourcing approach resulted in higher costs.…”

“…They suggested that outsourcing certain services such as waste management, catering and landscaping result in better cost and satisfaction. Subsequently, Lok et al. (2021) and Lok et al.…”

Agency problems in facility management (FM) outsourcing in the Ghanaian retail sector

“…According to Palm (2021), the role of FM in the functioning of a building is important but how it is performed is often a classic organizational problem that requires attention. To remain focused on their core businesses for competitive advantage, most organizations/building owners outsource some or all FM services (Lok et al, 2021a(Lok et al, , 2021b(Lok et al, , 2021cTannor et al, 2022b). According to Lok et al (2021aLok et al ( , 2021bLok et al ( , 2021c, outsourcing is the way forward in FM to create a conducive working environment for building users for a better economic and sustainable built environment.…”

“…To remain focused on their core businesses for competitive advantage, most organizations/building owners outsource some or all FM services (Lok et al, 2021a(Lok et al, , 2021b(Lok et al, , 2021cTannor et al, 2022b). According to Lok et al (2021aLok et al ( , 2021bLok et al ( , 2021c, outsourcing is the way forward in FM to create a conducive working environment for building users for a better economic and sustainable built environment. In India, for instance, the government requires that public institutions outsource issues relating to corporate social responsibility (CSR) to private service providers because they are trusted by the public to do a good job (Subramaniam et al, 2019).…”