Facility management

FACILITY MANAGEMENT

Benefits of Outsourcing Facilities Management

“ Facility management is the integral management process to realize an accommodation, with its needed services and products , that helps to realize the goals of a company in effective, efficient , flexible and creative manner in a changing environment . “ (Jan Regterschot , 1988)
“ A profession that encompassesmultiple disciplines to ensure functionality of the built environment by integrating people , place, processes and technology . “
"Facilities management is the integration of multi-disciplinary activities within the built environment and the management of their impact upon people and the workplace".

Outsourcing is transferring business processes from one company to another. The conceptis to have the management or day-to-day execution of one or more business functions performed by a third-party service provider who is already in sourcing those same business processes. A parent company uses the outside firm to provide a business function that could have been done in-house. The aim of outsourcing is to make the business or organization more competitive by staying focused on itscore competencies.
Benefits of outsourcing:
• The company functions on a continuous or ongoing basis rather than on any specific single project.

• It enables companies to focus on their core business function. Outsourcing takes care of ancillary functions in part or in totality. This optimizes the company’s growth based on its core or specific business.

• Reduces operating costs by focusingon major business area. This way, the capital funds always remain available for the core business instead of being diverted to other supporting portions of the business.

• Improves productivity and service by standardizing all operations and processes across your global portfolio. The outsourcing vendor manages your global portfolio comprehensively, thus increasing the lifespan of yourportfolio.

• Outsourcing when taken off shore gives you access to world-class capabilities. You can leverage global resource networks to support your business. It gives you another perspective or dimension to the existing business for more efficiency.

• With the shrinking world and cross-culture across the world, it helps employees to assimilate efficiently in changing the working environment.

•It fosters and sustains an exceptional safety culture, emphasizing training and employee morale.

• If done on same premises/country, it provides an alternate career option to employees.

• Creates flexibility with the facilities to even provide support in times of industry uncertainty.

• Speeds up work, shares innovations for best practices. You can maintain competitive edge with newideas.

• Reduces risk and increases productivity.

• Frees many resources for other purposes for enhancing or expanding your business in other directions.

• Companies can save 10-20% cost on an average with outsourcing.
Additional Benefits of outsourcing:
• Renewed focus on core business.

• Improved customer satisfaction with improved processes.

• Risk reduction due to reliance onexperts and infusion of new technology.

• Project enhancement and effective cost management through financial engineering.

• Renewed opportunities for employees with skill upgrade and access to newer skills.

• Visible cost reduction and avoidance of capital investment.

• Asset conversion.
Value derived from outsourcing facility management
• Value and savings gained. This occurs duringinitial transfer from in- to outsource as they do the job much more cheaply because of the availability of huge manpower and similarly larger global business.

• Increased focus. The management time and resources previously used on managing the facility can be used for research and development projects.

• Increased flexibility. It can eliminate fixed overheads and physical plant ownership,...