The “Royal Flush” in Outsourcing Non-Core Competencies: Integrated Facility Management Providers

As a CRE executive you have been ‘dealt a hand of cards’ by senior management to reduce occupancy costs and contribute to bottom line savings.

While the CRE department budget is being cut to fund initiatives, technology and additional staff forcing you to, ‘do much more with less without a card up your sleeve.’

The best way to ‘play your cards’ may be to out-source non-core competencies to integrated facility management firms to leverage their expertise and derive significant value. The benefits could be:

  • Collaborating/leveraging an advanced level of expertise, innovation and industry “best practices”
  • Creating a single point of contact and continuous service vs. project to project basis
  • Aligning critical occupancy cost category reduction strategies with service offerings
  • Accessing bundled services beyond traditional property/facility management
  • Benchmarking occupancy costs, space utilization and environmental sustainability among peers
  • Enhancing internal employee satisfaction by standardizing operations and processes
  • Utilizing vendor technologies
  • Applying performance-based, percentage of cost reduction fee arrangements

The Results?

Immediate savings of 10-15% – initial transfer to outsource vendor can access greater manpower

Increased focus – CRE management time used overseeing facilities can be dedicated to strategic initiatives

Increased flexibility – cut costs by eliminating fixed overheads and physical plant ownership

Whether you go for a ‘straight flush’ and out-source the traditional soft services (cleaning, waste management, landscaping, business support, reception, and mail room), hard services (preventive/reactive maintenance, non-stop control room and small repairs) or take advantage of evolving expertise in energy conservation (Reduce Energy Costs and Consumption/Waste) there are clear advantages.

But, when you can engage global IFM providers like Sodexo, Jones Lang LaSalle, JohnsonControls, CB Richard Ellis, UGL-Unicco and others, the payoff is a ‘royal flush’ by accessing true integrated service offerings such as:

  • Map Service Offerings to Occupancy Cost Categories
  • Benchmarking Facility/Portfolio Operating Cost Performance
  • Workplace, Building and Portfolio Efficiency
  • Energy Management/Procurement
  • Environmental Sustainability “best practices”
  • Green Building Design, LEED Certification and Construction PMO
  • Carbon Footprint Management
  • Space and Move Management
  • Work Order Processing/Call Center

With so many benefits and the opportunity to positively impact your organization’s financial performance, what’s with the ‘poker face’ and holding you back from going ‘all in’ with IFM providers and ‘winning the pot on the table’?

The best part is that it’s a ‘sure bet.’


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