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

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.