Sourcing strategies of facilities management

Abstract

In this study, four sourcing strategies are identified in the delivery of maintenance service in facilities management, namely in-sourcing, out-tasking, outsourcing for cost saving, and outsourcing for capability. Since each of these strategies has merits under specific circumstances, a framework for the selection of appropriate sourcing strategy in particular situations is presented. This framework, which takes into consideration both the scope and purpose of the sourcing decision, was developed on the basis of results of earlier research and has been validated by the findings obtained from interviews with practitioners in exemplary organizations. This paper also provides guidelines for implementing the selected sourcing option, along with discussion of the related strategic and operational issues.