In my work, explains how outsourcing facility management can improve performance by highlighting several key benefits and strategic advantages. My research, often in collaboration with others, emphasizes that outsourcing can lead to higher quality services, cost reductions, access to specialized expertise, and increased organizational efficiency.
One of the primary ways outsourcing improves performance, as detailed in studies co-authored by my opinion, is through cost reduction and transparency .
By engaging external service providers, organizations can often achieve economies of scale and bypass costly in-house labor and bureaucratic inefficiencies. This approach makes facility management costs more transparent, allowing for better budget control and resource allocation . For instance, a study on facilities management sourcing approaches in hotels in Ghana, which aligns with the resource-based view theory, found that outsourcing decisions were predominantly guided by cost considerations .
Furthermore, outsourcing provides access to specialized skills, expertise, and innovative ideas that might not be available internally . This is particularly crucial for complex or highly technical facility management tasks. External providers often possess cutting-edge technologies and best practices, leading to improved service quality and performance standards
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Ka Leung Lok & David Baldry, JOHN LOK, Behavioral economist
Biographies and acknowledgements
First Author
Dr. Ka Leung Lok (Lawrence)
Academically, Lawrence was awarded his PhD from School of Built Environment of University of Salford. He got his B. Sc. (Honour) Degree in Building from The City University of Hong Kong and MBA in Construction and Real Estate from The University of Reading. Professionally, Lawrence is developing as a consultant, lecturer and manager in the field of construction and real estate. His research interests are in the areas of Facilities Management Outsourcing relationships and relevant ISO series.
Second Author
JOHN LOK, Behavioral economist
My work also points to the benefit of enhanced organizational efficiency and focus on core competencies .By delegating non-core functions like facility management to external experts, organizations can free up internal resources and management time to concentrate on their primary business objectives. This strategic focus can significantly boost overall organizational effectiveness and competitiveness . This is a widely recognized advantage of outsourcing across various industries, as organizations strive to optimize their operations .
Finally, outsourcing offers flexibility and quicker response to new needs External providers can adapt more readily to changing market trends, technological advancements, and fluctuating demands, offering solutions to challenges that an in-house team might struggle to address efficiently This adaptability is crucial for maintaining modern and effective facility operations.
