Reasons Behind Back Sourcing Decision in Facilities Management Services: Expert Survey of Sri Lankan Cases

Abstract

Global interest in back sourcing has risen due to outsourcing failures, yet research on back sourcing in the facilities management services is limited. This study aims to identify back sourcing reasons in facilities management services in Sri Lanka. Four industries including food, apparel, private hospital, and hotel were chosen to conduct an expert survey interview from middle managers who have been involved in the back sourcing process of the facility management services. Data were analysed through content analysis. Findings revealed that dissatisfaction with service quality often initiates back sourcing; high costs and poor service quality were common reasons. Additionally, organizational changes, such as management shifts and strategic adjustments, along with changes in vendor structure and strategies due to external factors, influenced the decision to bring outsourced functions back in-house. This study explores the nuanced dynamics of back sourcing decisions in the facilities management services in Sri Lanka.