Abstract:
In Sri Lanka, Facilities Management (FM) outsourcing has shown steady growth in recent years.
Although FM outsourcing has become popular, organizations do not aware about what risks are
involved with outsourcing and its impact on service performance. Therefore, the purpose of this study
is to develop the strategic framework to analyse risks associated with FM outsourcing and their
impact on service performance. Firstly, a literature review was done to identify FM outsourcing risks
and its impact on service performance. Further, management strategies were reviewed to overcome
FM outsourcing risk with a view to improving performance. A quantitative research approach based
on questionnaire was followed to achieve research aim. The initial literature survey findings and
preliminary survey finding were included in the questionnaire. Subsequently, questionnaire survey was
conducted among the professional experts in both FM service provider companies and client
organisations. The results were analysed using descriptive and inferential statistical methods.
Accordingly, 31 factors were identified among the analysed 32 FM outsourcing risk factors. The
relationship between FM outsourcing risks with service performance attributes were identified by
using correlation analysis and FM service provider related risks were rated at the high side of
correlation. The factor analysis was also carried out and six management strategies were identified as
the most efficient strategies. Finally, a framework to enhance the FM outsourcing practice was
developed based on the research findings, in order to suggest appropriate solution to overcome FM
outsourcing risk. Hence developed framework can be used to effectively manage FM outsourcing
practice for FM practitioners.
