July 08, 2005
Properly Structuring Facility Management Outsourcing
Facility management outsourcing, like most outsourcing sectors have both clients who report high savings and complete satisfaction as well as others who have lost money in the venture and are consequently quite dissatisfied. Success in outsourcing, however, is not simply a matter of chance. In fact, a recent report produced through a survey taken at the Outsourcing Institute's Fifth Annual Outsourcing Index indicates that there are certain definative steps that can be taken to ensure success in facility management outsourcing. Regarded as the most important is selecting the right vendor (63%). Following this is ongoing relationship management (46%) and proper contract construction (40%). While those intimate with the outsourcing industry regard such findings as quite in line with expectations, they are nonetheless often overlooked by new entrants to outsourcing. Within these general recommendations, however, there also exist far more specific guidelines to achieving a successful outsourcing interchange. blackenterprise.com Reports:
2. Understand baseline facility management costs. Without a baseline, there is no way to assess the benefits of outsourcing and no way to document for executives that outsourcing makes financial sense. Also, do not overlook the soft costs, such as human resources, information technology, accounting and legal.
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