Risk Assessment & Management in Outsourcing of Facilities Management Services.

INTRODUCTION

Facilities management (FM)  adds value  to  organizations  in a variety  of  ways.  For instance, FM offers an integrated approach to maintaining, improving and adapting the buildings and other infrastructure of an organization in order to create an environment that strongly supports the primary objectives of the organization  (SFMS, 2006). Cotts and  Lee  (1992)  describe  FM as  an  essential  business  function  affecting  not  only revenues and costs but production, quality of life for employees, health and safety, the work  environment,  and  increasingly,  the  ability  to  recruit  and  retain  employees.  In addition,  Connors (2003) observes that when  FM is practiced properly, the following benefits accrue to the company:-

1.  Facility strategic plans match corporate strategic plans, ensuring the use of FM initiatives to achieve corporate objectives

2.   Space is available when and where needed

3.  Capital expenditures are planned and controlled

4.   Costs are minimized, and sometimes avoided.

Three approaches exist for the provision of part or whole of FM services: out-sourced, in-house or a hybrid of both: Atkin and Brooks (2005) argue that the approach taken depends  on  the priority set  by the  organization  for the  services  to  be provided.  In lending further support, Barrett (1995) opines that some organizations favour a totally in-house option, while others literally contract out every service possible, yet others use a combination of both.

From  a  contractual  perspective,  outsourcing  is  a  service  commissioned  from  an external   supply   orqanization..  particularly   on  the   basis  of   a   formal  contractual arrangement   based  upon  the  terms  and  conditions  derived  from  a  service-level agreement  (Barrett and  Baldry, 2003).  Hiemstra  and Van  Tilburg  (1993) add to this view by  opining  that outsourcing  is the  subcontracting  of custom-made  articles and construction, such as components, sub-assemblies, final products, adaptations andl or services to another company.

TABLE OF CONTENTS

ContentPage

Title page i

Certification ii

Dedication iii

Acknowledgement iv

Declarationv

Abstractvi

Table of Content

vii

Chapter  One: Introduction

1.1Background of the study

1.2Statement of the Research Problem

1.3Objectives of the study

1.4Research Hypothesis

1.5Scope and Limitations

1.6Significance of the Research Findings

Chapter Two: Literature Review

2.1 Introduction

2.2 Historical Background of facilities management outsourcing

2.3 FM in context

2.4 Classification of FM works

2.5 FM functions

2.6 Underpinning the selection of outsourcing or in- house FM approach

2.7 What is Outsourcing?

2.8 Concept of outsourcing of facilities management

2.9 FM functions suitable for outsourcing

2.10 Advantages and disadvantages of outsourcing

2.11 Potential negative outcomes of outsourcing

2.12 Outsource risk analysis

2.13 outsource risk management

2.14 When is risk assessment needed?

2.15 The FM value proposition

2.16 FM outsource risk explored

2.17 Risk management

2.18 Outsource risk management framework

2.19 Implementing risk management

Chapter Three: Research methodology

3.1 Introduction

3.2 Research methods

3.2.1 Descriptive research

3.3 Population of the study

3.4 Sample or sampling design

3.5 Sources of data

3.5.1 The primary sources of data

3.5.2 The secondary sources of data

3.6 Methods of data collection

3.6.1 Interview 

3.6.2 Questionnaire

3.6.3 Observation

3.7.1 The chi – square (x2) test

3.7.1.1Cross tabulation or contingency table

3.7.2 Percentage

3.8 Justification of the techniques

3.9 Summary

Chapter Four: Data Presentation and Analysis

4.1 Overview

4.2 Test of hypotheses

4.3.1 Decision rule

4.4 Discussions of findings

4.5 Summary

Chapter Five: Conclusions and Recommendation

5.1 Conclusions

5.2 Implications of the findings to FM industry practice

5.3 Recommendations for further study

5.4 Reference