Outsourcing of facilities management services by multinational manufacturing firms in Kenya

Abstract

Strategic outsourcing is gaining wide spread acceptance throughout the World, top executives of leading multinationals turn to outsourcing as a strategic management tool for improving corporate performance, profitability and shareholder's value. This study sought to establish the current practices and challenges faced by Multinational Manufacturing firms in Kenya on outsourcing Facilities Management Services. The study involved a survey on the twelve multinational manufacturing companies in Kenya. Data was collected via questionnaires covering; the general company information, levels and extent of outsourcing, reasons for outsourcing and the challenges faced when a company out-sources Facilities Management Services. The data collected was then analyzed and the findings then discussed, revealing that all the companies outsourced several non core services, Commonly outsourced services are cleaning and security. The study also brought out the fact that the concept of facilities management has not been fully embraced. In fact only two out of the twelve companies have outsourced Facilities Management Services. Most of the companies engaged several suppliers to offer various services which would otherwise have been done by only one, "a Facility Management Company".