Facilities management outsourcing flagship facility services. Without adequate advice, planning and management, outsourcing projects can and do fail. You should remember that if the disadvantages outweigh the advantages then the decision to outsource should be considered very carefully. The business process outsourcing strategy in facilities. The most common form of fm application is outsourcing. The analysis showed that the most popularly outsourced services are security and catering. Disadvantages of outsourcing facilities management services. Benefits of outsourcing facilities management nls fm uk. Edoghogho ogbeifun a research report submitted to the faculty of engineering and built environment, university of the witwatersrand, johannesburg, in partial fulfillment of the requirements for the degree of master of science in engineering. This paper attempts to determine a clear distinction between out tasking and outsourcing, and then to provide a model to explain the advantages pros and disadvantages cons of this strategy by analysing the wants of both the client and supplier. Outsourcing for facilities management professionals. Pdf determinants of outsourcing decision for facilities. Outsourcing in facilities management involves turning over the complete management and decisionmaking authority of an operation to somebody outside organization.
The sentiment toward outsourcing is changing heavily. Fees for human drug compounding outsourcing facilities under. Determinants of outsourcing decision for facilities management fm services provision. As companies continue on the integrated facilities management ifm outsourcing journey, corporate real estate cre, facilities management fm and procurement executives must evolve their sourcing strategies from firstgeneration approaches to accommodate shifts in internal goals and objectives and respond to changes in the supplier industry. Fees for human drug compounding outsourcing facilities. This model of facilities management delivery has come a long way since it was first introduced and is. Facilities management addresses the maintenance and upkeep of physical facilities. The integration of multidisciplinary activities within the built environment and the management of their impact upon people and the workplace. Facility management is an effective form of organizational changes that support the orientation of the organization on core business activities. Pdf outsourcing of facility management researchgate. At present, at the time of financial crisis, the application of fm is used the most since it provides savings in operating costs of organization. Understanding the outsourcing of facilities management.
Service quality and user satisfaction of outsourced facilities management fm services in nigerias public hospitals. The transferring of facilities management processes and operations from one company to another. Jan 01, 2004 the question of the merits of outsourcing facilities management remains relevant. The advantages of outsourced facilities management there are some key advantages to outsourcing services. Whereas companies in the late 2000s focused on insourcing, as a response to changes in political sentiment, wage deflation, and. Facilities management it inhouse facilities management advantages. Evaluating effective outsourcing strategy in facility management fig. I consider facility management to be a core competency, he said. Facilities management is comprised of a broad range of activities ranging from utilitiesplant. The elsevier facilities management handbook gives a complete overview of these roles, demonstrating that facilities managers really are the stewards of the built environment. You will still need to check that the outsourced company is performing their duties to the required levels.
Evaluating effective outsourcing strategy in facili ty management 7777 khk chan hong kong sar, china fig working week 2015 from the wisdom of the ages to the challenges of the modern world sofia, bulgaria, 1721 may 2015 430 the external labor market outsourcing, on the other hand, can take on many forms such as. Pdf outsourcing in facilities management a literature. This model of facilities management delivery has come a long way since it was first introduced and is now capable of providing value far beyond simple cost savings. Evaluating effective outsourcing strategy in facility management 7777 khk chan hong kong sar, china fig working week 2015 from the wisdom of the ages to the challenges of the modern world sofia, bulgaria, 1721 may 2015 430 the external labor market outsourcing, on the other hand, can take on many forms such as. The wide range of subjects covered in the facilities management handbook includes. Pdf facility management is an effective form of organizational changes that support the orientation of the organization on core business. Evaluating effective outsourcing strategy in facility management. An efficient working environment represents an enormous overhead. Outsourcing, facility management, facility management market, russia. This study is aimed at analysing the current procurement practice of facilities management services in uganda, from which the growth of facilities management in uganda may be projected. Design of sustainable outsourcing services for facilities. The general outsourcing process in facilities management.
Where fms get outsourcing news, releases, education and can find out how other facility professionals addressed similar challenges in their buildings. As a business grows, its facilities management demands an attention equivalent to the size of the business. Integrated facilities management emcor facilities services. Over the years and with my experience in working on major outsourced facilities management contracts, i have come to understand outsourcing of facilities management services as. A stepbystep guide to writing a successful outsourcing rfp. The advantages of outsourced facilities management xenon. The most common driver for outsourcing was the necessity to gain quality services from another organisations expertise. Often these relate to cost, however as we will see, there are some other important factors to consider. To establish the challenges faced by multinational manufacturing firms in kenya on implementing outsourced facilities management services. Evaluating effective outsourcing strategy in facility. The article also shows how to evaluate, monitor, and manage the outsourcing relationship, speci.
Outsourced facilities management tpg facilities management. Theory x and theory y effective management swot analysis chapter 4 using a. And the last one from saudi arabia, which has achieved remarkable growth in developing urban infrastructure in the past three decades, performed by hassanain and alsaadi 2005, focused on bpo in the fm for municipalities see diagram belowv. The future of facilities management hard and soft services gantt charts and the critical path method fayol. Pdf service quality and user satisfaction of outsourced. Evolutions in nextgeneration integrated facilities. From integrated facilities and project management solutions to energy management outsourcing, efs has the people, processes, tools, and technology to deliver sustainable results each and. Facilities management outsourcing strategies in the. Disadvantages of outsourcing facilities management services as with any option, there are disadvantages to outsourcing facilities management services which we will consider in this post. It was discovered that although some organisations insource a number of facilities management services, the majority is outsourced. What are the benefits of facility management outsourcing. A second facility executive said the worst mistake i ever made was outsourcing the mail room. The study was limited to the views expressed by facilities and property managers registered with the property institute of new zealand property and the facilities management association of australia.
Outsourcing your facility services can be one of the best decisions youll ever make for your organization and business. It may help businesses to maximize returns on investment and establish long term competitive advantages in the marketplace. This study will present the comparison between outsourcing and inhouse facilities management in terms of the definition, advantages and disadvantages. Most of these companies are using the outsourcing services in facility management and they can provide a model of facility management market in russia based.
Managing financial risks, organizations resources, outsourcing, inhouse services. The consequences of a messy public divorce can be disastrous. Perspectives of facility management outsourcing development in russia were presented in the conclusion. In our experience, organisations will almost certainly the outsourcing handbook a guide to outsourcing.
This is where outsourcing facilities management becomes very necessary for the business. Learn more about the benefits of outsourcing your facilities services by downloading the outsourcing white paper. A framework for outsourcing facilities management services in. Obtaining the required positive and measurable benefits to convince the hospitals senior leadership to embark on the journey of outsourcing is daunting. Emcor facilities services efs understands that and approaches every fm program with full accountability and a steady drive to exceed client expectations. This paper will provide a useful management tool for selecting the appropriate.
It reaches a time when the cost and time spent by the business on facilities management becomes too much. Those participants have indicated in the survey that they have already outsourced facilities management services to some extent. This policy and procedures manual is focused on data center and equipment facilities. You could use your own inhouse it team to develop fm software for your own business needs or purchase offtheshelf software. Determinants of outsourcing decision for facilities management fm services. Cips defines outsourcing as the process of identifying the most suitable expert third party service provider to undertake the management, administration and provision of the service in question. Any outsourcing arrangement involves a range of complex issues related to personnel, management sponsorship, and strategic fit and alignment. Nov 23, 2010 facilities management fm outsourcing may lead to a leaner, more efficient organisation that can concentrate on core business and reduce operating costs. A key role in supporting performance we also look at how forwardthinking organisations are using the workplace to boost the performance of their people. It also needs significant ongoing investment of managerial time and resource. Facilities management is a type of outsourced service in that it is the contracting out of all activities connected with the. With outsourcing, he said, customer service slips and the credibility of the facility organization suffers. Managing financial risks, organizations resources, outsourcing, in house services. Six emerging trends in facilities management sourcing mckinsey.