Analysis of supply models and FM service market trends in Finland – implications on sourcing decision‐making

Abstract

Purpose

The purpose of this research is to analyse Facilities Management (FM) service market trends and different supply models of FM services in Finland. In addition, the implications of the prevailing market conditions for a client's decision‐making concerning FM services sourcing are discussed.

Design/methodology/approach

The research is based on thematic interviews and a survey that were conducted in Finnish FM service companies.

Findings

In order to compete successfully in the FM service market and fulfil the clients' needs in the near future, service providers need to be able to offer a wider range of FM services. In addition, it is important that the suppliers become stronger in the area of technical service competence. As the service companies are developing their internal technical competences, the clients might become more confident in outsourcing more technically demanding FM services. These market trends might explain why buyers in the FM service market are more ahead in using supply models like the integrated service provider model as opposed to using supply models like the specialized service provider model.

Research limitations/implications

This research offers new insight into FM service market trends in Finland and sheds light on the implications of the market conditions on the client's decision‐making process concerning the sourcing of FM services. In order to make stronger claims and to better understand the FM service industry as a whole, one should also gather data from the buyer side.

Practical implications

As information on a certain market is important for the buyers, it is suggested that the buyers of FM services should make a systematic research of the FM markets as part of sourcing strategy development or at least prior to releasing an invitation to tender to selected potential suppliers.

Originality/value

This research offers important market information that could be used to help the clients to make well‐grounded FM service sourcing decisions. In addition, this research describes those factors of competitiveness that come into play when service providers are in the process of reaching their competitive position in a certain market.

Citation

Ventovuori, T. (2007), "Analysis of supply models and FM service market trends in Finland – implications on sourcing decision‐making", Journal of Facilities Management, Vol. 5 No. 1, pp. 37-48. https://doi.org/10.1108/14725960710726337