Assessment of the impact of outsourced labour services on resource optimisation among construction companies

Abstract

This study examined the impact of outsourced labour services on resource optimization. Specifically, labour services outsourced effect on resource optimization and the methods of resource optimization were identified. Cross sectional research approach was employed, a sample of 20 companies were randomly selected. Project managers or human resource managers were purposively selected to participate in this study. Questionnaires were used to collect data and data captured was analyzed in SPSS 20 analytical software. The outsourced sources were majorly architectural, mechanical and catering services during planning and construction process while electrical, project management, plumbing, surveying and legal services were highly provided internally. The Outsourced services highly influenced labour first (1st), secondly (2nd) technologies, thirdly (3rd) materials, fourthly (4th) finances and finally by time. Construction companies largely used resource planning, Gantt charts, task list, project scheduling, data collection and presentations, quantitative risk analysis while most employed resource leveling in addition, resource smoothing as methods of resource optimization. These findings reveal that outsourced services largely affected labour, technology and material use, which equally related to the outsourcing of skilled labour force and application of strategic resource allocation and resource management techniques. However, time resource was at low level of optimization implying there was a weakness in the management of time by allocation of finances and labour resources. Therefore, construction companies should encourage their clients to apply for housing investment /financing to limit the risks of delay project completion, which increases project costs.