Globally, real estate (RE) and facility management (FM) outsourcing continues to grow with the most mature markets being the Americas and EMEA (Europe, Middle East & Africa) with Asia Pacific emerging strongly. While operating expenditure reduction remains the key driver, selecting a supplier that works closely at a strategic level to improve core business operation and growth is high on the agenda. Additional drivers include improving RE and FM process performance, gaining from economies of scale and improving financial flexibility.
Sectors seeing the largest increase in outsourcing include banking & financial services and healthcare, pharmaceutical and biotech.
The trend is for a reduction in numbers of service providers with preference being given to those suppliers that offer the widest range of services with a significant proportion being self-delivered (i.e. non-sub-contracted.
Intelligent analysis of RE and FM data is increasingly being seen as an important element of service provision with benchmarking and comparative data providing useful decision-making information. Increasingly, energy management is being incorporated under the total RE/FM service offering with everything from construction and operation of dedicated Biomass or Combined Heat and Power (CHP) plant to tariff reduction through intelligent power demand management.
Management of RE/FM suppliers is becoming increasingly sophisticated with greater use of balanced scorecards and a wide variety of incentive/penalty mechanisms.
Ensuring outsourcing results in a stable, rewarding and long-lasting partnership requires not only a deep knowledge of market dynamics but also the wide range of sourcing and implementation options available and experience of how best to apply the most appropriate to any given situation and client. (See Sourcing and Contracting).