The aim of this paper is to present a framework model for outsourcing asset management services in municipalities.

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.

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.

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.