Facilities management outsourcing model in need of review
Facilities management service delivery is at a turning point, as ‘historic’ models fail to meet customer needs, found research undertaken by Sheffield Hallam University and commissioned by Interserve.
In a drive to achieve innovation in service delivery within tight cost constraints, commercial organisations are planning to outsource more services through Total Facilities Management (TFM) contracts in the future.
The research, which surveyed 130 facilities managers within the industry, found that companies are frustrated by the limitations of outsourcing on a lowest cost single service model - which is the most common procurement route today.
The research questioned individuals around 11 different benefits they can achieve from outsourcing and their response was that an integrated or total facilities management model is the best route to achieve these goals. Benefits include:
- Reduced cost
- Value for money
- Added value / innovation
- Access to technical expertise
- Improved management information
- Ability to focus on core business
Commenting on the survey, Bruce Melizan, Executive Director at Interserve said:
“This response represents a new realism in facilities management procurement. Facilities managers are saying that financial constraints are here to stay, there are no more ‘quick wins’ and the way forward is to work together strategically.
“At Interserve we believe this is a far more intelligent approach. By delivering services through a joined-up strategic model, we can deliver both the initial savings required and provide the security and investment these clients need to achieve more innovative, flexible and efficient service delivery in the long term.”
The key findings from this extensive research study are available in the free “The changing shape of facilities management procurement" report.
- Ends -
Interserve commissioned Sheffield Hallam University Centre for Facilities Management to carry out research into the drivers for facilities management procurement. Field-work was carried out between September and November 2011 and 130 participants completed the survey online and 5 telephone interviews were undertaken. All responses were anonymous and confidential. No weightings have been applied to the data.
- 49 per cent of respondents were from large organisations (between 1,000 and 9,999 employees)
- 76 per cent of respondents had a combined, in-house / outsourcing service model.
- 34 per cent of participating organisations outsource over half their facilities management services, whilst 38 per cent (the majority) of respondents outsource between 26 to 50 per cent of their facilities services.
- 73 per cent have five or more years’ experience of outsourcing.
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Interserve's vision is to be the Trusted Partner of all our stakeholders. We are one of the world’s foremost support services and construction companies, operating in the public and private sectors in the UK and internationally. We offer advice, design, construction, equipment and facilities management services for society's infrastructure. Interserve is based in the UK, has revenue of £1.9 billion and a workforce of nearly 50,000 people worldwide.
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