Outsourcing

Abstract

Aim: The aim of this chapter is to outline the main things to be considered by management in regard to outsourcing of asset management and maintenance work. Both positive and negative aspects of outsourcing are indicated, with the aim of helping managers to get the best value from their outsourcing options.

Outcomes: After reading this chapter you will know what type of tasks to outsource and what type are best kept in-house. You will learn about the types of outsourcing contract and about the points to watch for in creating and management outsourcing contracts. You will also read about outsourcing from a contractor viewpoint, which will assist both parties to an outsourcing contract to achieve a favorable outcome. You will also read about forms of contract such as build own operate transfer and public–private partnerships.

Topics:

• Introduction

• What to outsource

• Owner/Operator model

• What not to outsource

• Benefits of outsourcing

• Costs of outsourcing

• Types of contract

• Contract features

• Outsourcing risk avoidance

• Audit

• Contractor viewpoint

• Build own operate transfer

• Public–private partnerships