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Title: The trend of outsourcing for building services operation and maintenance in Hong Kong
Authors: Yik, FWH
Lai, JHK 
Keywords: Building services
Operations management
Issue Date: 2005
Publisher: Emerald Group Publishing Limited
Source: Facilities, 2005, v. 23, no. 1-2, p. 63-72 How to cite?
Journal: Facilities 
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.
ISSN: 0263-2772
EISSN: 1758-7131
DOI: 10.1108/02632770510575901
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