The trend of outsourcing for building services operation and maintenance in Hong Kong

Abstract

Purpose

To explain the recent emergence of the trend of outsourcing for building services operation and maintenance (O&M) work for commercial buildings in Hong Kong and to predict its future development.

Design/methodology/approach

Based on economic theories, the authors' understanding of buildings and building services O&M in Hong Kong and information regarding property, companies and manpower statistics, the increasing use of outsourcing is explained with a prediction of its implications for industry stakeholders and future trends.

Findings

Reports the common operation and maintenance organization for small, medium and large commercial buildings and explains the relation between outsourcing and the recent economic downturn and sharp cuts in O&M expenditure. Analyses the factors influencing O&M costs and predicts that the trend of outsourcing will continue if contractors keep on upgrading their knowledge and skills to provide quality services more economically than the in‐house workforce.

Research limitations/implications

The explanation and prediction rely greatly on economic theories and the authors' knowledge and observations from industry, yet the reason for outsourcing and the factors influencing O&M costs are unveiled.

Practical implications

The findings have exposed implications for building owners and O&M practitioners as a result of the outsourcing trend, on top of establishing a rigid framework for future practical research in the area.

Originality/value

This paper explains the prime motive for outsourcing building services O&M work for commercial buildings, predicts future trends and reveals the implications for stakeholders in the O&M industry in Hong Kong.

Citation

Yik, F.W.H. and Lai, J.H.K. (2005), "The trend of outsourcing for building services operation and maintenance in Hong Kong", Facilities, Vol. 23 No. 1/2, pp. 63-72. https://doi.org/10.1108/02632770510575901