Facilities Manager's Desk Reference, 3rd Edition

5Outsourcing

5.1 Introduction

Historically, the desire to reduce operating costs has been the primary reason for outsourcing. Cost efficiencies have been the driving force behind FM (facilities management, or facilities manager) outsourcing. By outsourcing, companies can take non‐core activities off the balance sheet and concentrate on their core business. Companies recognise that outsourcing offers powerful forces for change through the innovations that outside specialists can bring. The typical FM services that have been outsourced to specialist contractors for many years are catering, cleaning and security, as well as specialist maintenance services such as lifts, water treatment and fire protection. Companies can pick and choose from a sophisticated marketplace of suppliers for a diverse range of services from property management, space management and communications infrastructure to building maintenance, administration and contract management. Cost efficiencies are still critical in outsourcing services to others; however, there is an increasing need for the outsourced contractor to innovate and add value to their service delivery. Clients are demanding more for less.

FM services are not the only areas where organisations outsource. Other functions could be customer call centres, car fleet management, information management, HR (personnel) management, financial management, training, payroll administration and production.

Where it suits a company to outsource, FM services ...