A framework model for outsourcing asset management services Mohammad A. Hassanain and Saleh Al-Saadi Architectural Engineering Department, King Fahd University of Petroleum and Minerals, Dhahran, Saudi Arabia Abstract Purpose – The aim of this paper is to present a framework model for outsourcing asset management services in municipalities. Design/methodology/approach – The authors have analysed the outsourcing of asset management services in the municipal sector. A survey document containing a series of questions was developed and issued to administrative (policy-making) staff members at senior management level. These staff members are concerned with the strategic planning of facilities beyond the five-year horizon. Findings – The survey indicated that outsourcing is being utilized in almost all functions relating to the management of municipal infrastructure, and that the criterion for selecting a specific contractor for a service is lowest price. The findings section in the paper also presents a list of the advantages of outsourcing along with the rated priority of each, the disadvantages of outsourcing along with the rated severity of each, and the strategies that could be followed to achieve a successful outcome from the outsourcing process, along with the rated importance of each. Originality/value – Development of the model was motivated by the desire to develop a standard methodology that senior managers in the municipalities can adopt as a reference policy guideline for the conduct of outsourcing of asset management services. The model builds on knowledge from the published literature and professional practice documented in the municipality of the City of Dammam, one of the largest cities in the Eastern Province of Saudi Arabia. The model serves to standardize process descriptions, the activities that need to be undertaken, and the methodology of how and what information needs to be communicated between activities. The framework also may provide a useful focus for others wishing to enter the outsourcing area. Keywords Assets management, Outsourcing, Services, Saudi Arabia Paper type Research paper Introduction Saudi Arabia has achieved remarkable growth in infrastructure development in the past three decades. This growth is shown by rapid urban development. Cities are faced with the constant challenge of providing cost-efficient services to the public. Hence, outsourcing of design, construction or facilities management services provides a practical consideration to these challenges. Municipalities in many parts of the world have realized the benefits of outsourcing and have been adopting the practice in most of their asset management services. Outsourcing practices have been adopted in organizations performing a wide range of asset management functions (Klammt, 2001): The Emerald Research Register for this journal is available at The current issue and full text archive of this journal is available at www.emeraldinsight.com/researchregister www.emeraldinsight.com/0263-2772.htm The authors would like to thank King Fahd University of Petroleum and Minerals for the support and facilities that made this research possible. Outsourcing asset management 73 Facilities Vol. 23 No. 1/2, 2005 pp. 73-81 q Emerald Group Publishing Limited 0263-2772 DOI 10.1108/02632770510575910