Outsourcing facilities management in the process industry: A comparison of Swedish and UK patterns

Abstract

The use of external providers, multiple or single, for peripheral support services has expanded during the 1990s. This investigation analyses patterns of support service outsourcing against a background of industry and national differences. Questionnaires and interviews with managers of three Swedish and three UK process industry plants (chemical, newspaper and steel) show to what extent facilities management (FM) and FMrelated services were outsourced in 2000 and expectations for the next two years. Why process industries tend to rely less on outsourcing than other manufacturing industries can be partly explained by the consequences of process interruption. The UK tendency to outsource is stronger than in the Swedish cases, probably owing to stronger ties between employers and employees in the Swedish process industry. The management of skills and tacit knowledge also emerge as explanations. Lower population density in Sweden may contribute to a higher degree of integration in companies.

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