This article is from the Australian Property Journal archive
OUTSOURCING facilities management could cut a business’s property-related costs by up to 25%, while accelerating net zero objectives.
According to a new report by JLL, the global market for facility management is quickly ramping up its presence, with the sector currently growing by 6% each year with expectations of reaching US$1.9 trillion in value by 2024.
The report found that outsourcing non-core business activities to a facility management partner could enable a company to reduce costs through energy consumption, workforce administration, property maintenance, training and supply chain management.
“Once a comprehensive facility management partnership is in place, it will significantly reduce the effort, and cost spent running your property portfolio, whilst also accelerating your sustainability and compliance objectives,” said Nick Moore, head of sales, work dynamics at JLL, Australasia.
A well-devised facilities management plan could enforce sustainability measures that could otherwise be overlooked, delegating the more detailed decisions such as the latest energy saving technology and green energy deals.
In addition to making it their business to be up to date with the latest sustainability practice and regulations, leaving providers armed to create a program to reduce a property asset’s carbon footprint faster.
“There have been enormous advances in this area, with automation, wireless sensors, machine learning and artificial intelligence helping to keep building systems running smoothly. A business might not have this technology expertise in house, but a leading service provider certainly will,” added Moore.
A facilities management company also brings the added benefit of its pre-existing supply chain network.
Moore also noted that in labour market, where staff shortages are common, targeting specialist service providers outside of in-house roles makes the most sense.
“In-house employees will naturally be concerned about future job security. The reality is that a reputable partner will be eager to hire your facilities staff and retain their valuable institutional knowledge. In fact, employees who transition to your service provider firm will likely discover opportunities for career advancement and further learning,” said Moore.
Outlining the five key steps a business should take when outsourcing facilities management services, JLL emphasised the need to clarify the business’s goals; explore options for achieving such goals; collaborate with stakeholders to identify needs and issues; and communicate clearly to aid a smooth transition.
