In-house versus outsourcing facilities management: a framework for value-added selection in Sri Lankan commercial buildings

Abstract

Facilities Management (FM) in the commercial building industry has been receiving increasing attention recently. FM is a multi-skilled profession which gives resources support for the core business because it concerns both optimizing building performance and ensuring the commercial success of the organization. However, in the Sri Lankan context, most organizations solely focus on the financial aspect while choosing between the outsourcing and in-house FM options, thus excluding other non-financial aspects such as the extent to which the FM route contributes to improving internal business processes and the overall strategic health of the organization. Hence, there is a need to arrive at specific framework for efficient decision making when choosing between the outsourcing and in-house FM approach for the purpose of addressing FM needs. However, the literature so far has failed to develop a framework when choosing the best FM approach for commercial buildings. The present research intends to fill this gap. This study presents the results of an investigation through a literature review into arriving at a holistic perspective on the key variables to be considered in choosing between outsourcing and in-house FM in order to provide value added services and to improve organizational performance. The paper therefore develops a decision support model for selection between outsourcing and in-house FM services through research.