Outsourcing Decision

Total Facility Management – 5th edition

This chapter considers the question of whether or not to outsource services. It shows that the question is best answered should be answered by weighing the available options for service delivery against predefined criteria to indicate the most appropriate solution.

The decision to outsource can be made rationally and objectively, based on attributes of service that are relevant and transparent. At any time, an organization can evaluate the suitability of the options open to it.

The following points, among many others, are covered in the chapter.

  • Outsourcing should be the outcome of a decision that has weighed the options for service delivery against predefined criteria, with the high probability of achieving user satisfaction from a best value solution.
  • Stakeholders must be involved from the outset in specifying the services required and the level of performance that will be acceptable to them.
  • Markets for services have to be understood ahead of determining the options for service delivery so that the practicability of a recommended outcome is assured.
  • The most appropriate outsourcing options for service delivery should be selected objectively as part of a transparent evaluation involving key stakeholders.
  • Potential options for outsourcing include single-service providers, multiple-service providers, managing agent, managing contractor, total facility management, integrator and fully serviced workplace.
  • The key attributes of service – both hard and soft measures – should be identified so that a balanced view of needs is established as the basis for evaluating options.
  • Typical attributes include user service, uniqueness of service, priority of service, flexibility, speed of response, direct cost, management, indirect cost and control.
  • The importance or weight given to each attribute should reflect requirements embodied in the facility management strategy and policy.
  • The degree of flexibility in service delivery will vary with each option and has to be taken into account during evaluation.