Successful FM Outsourcing

Chris Baxter
Market changes and budgetary pressures are forcing organizations to re-examine their core business activities and support operations. Maintaining an efficient working environment represents an enormous overhead. It also needs significant ongoing investment of managerial time and resource.

Many companies are exploring Facilities Management (FM) outsourcing to achieve a leaner, more efficient organization that can concentrate on core business and reduce operating costs.

Exploring outsourcing options

Organizations explore outsourcing options for a variety of reasons:

  • cost reduction,

  • the potential to convert fixed costs to variable costs.

  • insufficient management time available for the existing in-house operation

  • difficulty in retaining sufficiently qualified staff

Advantages of switching to FM outsourcing

  • cost savings of ten to twenty per cent,

  • improved service delivery by specialist FM Service Providers

  • better attraction and retention of staff by the Service Providers

  • improved management of existing resources and transformational initiatives

  • added value of consultancy expertise

  • potential for better procurement opportunities for an asset refresh

What's needed for successful FM outsourcing?

  • strong leadership

  • decision-makers empowered to manage resources, balance the program's priorities and focus on the business benefits realization

  • good stakeholder management and communication

  • clear service levels and governance.

Benefits management should also be considered, as FM outsourcing is typically highly visible. End users notice changes to food services, environmental conditions and housekeeping immediately. It's important to monitor how the initial foreseen benefits will remain intact and of value to the organization. Thorough interrogation of the service provision market is needed, to ensure delivery capability. Global estate holders will be affected by the significant differences in labor laws in each country, impacting on service provision.

Faithful+Gould utilizes program management, specialist FM subject matter expertise, procurement, risk management and change management techniques to design and implement a well-planned outsourcing process. Our sector specialists strive for a full understanding of our clients' culture and aspirations, and this is key to achieving cohesive and workable solutions.

Our experience spans global facilities management and outsourcing projects, typically with large real estate portfolios and complex day-to-day facilities operations. Effective results have been achieved for clients in the pharmaceutical, finance, energy and government sectors, with our costs subsumed within the benefits realized.