A Review of Benefits and Risks of Outsourcing Building Operation and Maintenance

Abstract

Over the past few years, there has been a growing trend and high demand for outsourcing as a procurement strategy in the field of building operations and maintenance. Successful outsourcing can bring numerous advantages to organisations, encompassing a wide range of benefits. However, if outsourcing fails, there are substantial risks that organisations may face. The objective of this paper is to analyse the current literature concerning the advantages and disadvantages of outsourcing building operations and maintenance. Additionally, it aims to compile the findings and identify any potential research gaps in the existing body of knowledge. A comprehensive search through a systematic review of the literature was conducted across numerous journals. Key terms derived from the initial literature review are used first to categorise whether the studies address outsourcing benefits, risks, motivations, or issues. The benefits and risks of outsourcing building operations and maintenance construct were then identified using content analysis methodology and an inductive coding technique. Through a methodological and well-organised approach, this paper offers an extensive collection of previously recognised benefits and risks of outsourcing building operations and maintenance. The findings of this paper indicate several expected benefits of outsourcing building operation and maintenance, including cost savings, a focus on core functions, quality improvement, reduced capital expenditure, increased economic efficiency, and greater flexibility. This paper also classifies the risk of outsourcing building operations and maintenance into five risk factors: client risk, vendor risk, contract risk, communication or relationship risk, and general risk. The result reveals that a well-executed outsourcing strategy assists organisations in effectively managing their building operations and maintenance tasks.