10 Strategic Reasons for Facilities Management Outsourcing

The decision to outsource facilities management was once simple enough. However, it started to change in recent years as companies realized that not all outsourced partners were created equally. Consider this, explains FacilitiesNet, “looking back over facility management outsourcing history underscores the quality rationale as one of the most compelling reasons why companies elected to move to an outsource relationship. Over time, however, priorities have changed as corporate motives shifted to cost control and reduction as a driver for outsourcing. This apparent change in strategy has left many facility professionals wondering if quality facility management services are now completely off the corporate radar.” With the need to reduce operating costs leading the reasons for outsourcing in 2018 and a strong push for contactless, safe experiences today, outsourcing is once again a focal point for facility managers. Let’s take a look at 10 of the top reasons a company chooses to take advantage of outsourced service offerings and how they enable cost reductions.

1. Streamlined Field Service Vendor Management

A core reason for facilities management outsourcing surrounds field service vendor management. As explained by Facility Executive, “Choosing to use several providers for individual services provides the advantage of having experts handling these tasks. But you’re still faced with other services needing attention. It would be easier on you to contract with a vendor capable of taking two or more services off your hands.” After all, an outsourcing provider does just that, bringing all field service vendor needs, vetting, and payment processes into one contract.

2. Company Expansion Requiring Multi-Site Facilities Management

Another reason for outsourcing goes back to enterprise expansion. As a business expands into a multi-site portfolio, outsourcing eliminates the hassle and trouble of managing more than one location. Again, it involves streamlined management of everything involved in facilities management.

3. Demand for Faster, More Efficient Process Execution

Demand for fast, efficient service is absolute. But let’s say it anyway. Outsourcing shortens the time to resolve issues that “pop up” while reducing the headache of management.

4. Avert Internal Resources to High-Priority Needs

Since your team is free from the burden of putting out fires with reactive strategies, they can focus on lower-priority items. This is among the most straightforward and most profitable aspects of facilities management outsourcing. 

5. Create Flexibility in Asset & Building Management

Outsourcing builds in more flexibility to all asset management. And that naturally includes labor resource management too—simple.

6. Lower Total Cost of Ownership Through Preventive Maintenance

Reductions in reactive maintenance, afforded by preventive maintenance, lowers the total cost of ownership (TCO). As also noted by Facility Executive, “Outsourcing of services has been a major initiative in the drive for cost reductions among large facilities organizations and evidently is not abating. Concurrent is the rapid adoption of workplace technologies to streamline, standardize, and gain control of facility management operations.” In turn, that promotes budget adherence.

7. Complex Component and Replacement Part Inventory Management

Another issue is inventory management. Filters, bulbs and unique components can be challenging to locate, buy and store. By moving that to an outsourced partner, there’s more free space and less stress among your team.

8. Time Management and Tracking

Outsourcing also ensures invoice and time management accuracy. It’s rather straightforward, but it’s the facts.

9. Diversification of the Field Service Vendor Network

The best-laid plans may not work out when you have a handful of field service vendors. Instead of limiting your network, expand it with outsourced services.

10. Consensus Around Integrated Solutions That Conserve Resources

Integrated facilities management promotes efficiency by identifying opportunities to streamline maintenance and all facilities management needs. For instance, a preventive visit to address HVAC maintenance could save the cost of an extra trip if the technician notices a chipped doorframe. The technician can handle both, saving time and resources.

Become a Better Business With Strategic Facilities Management Outsourcing Through SMG Holdings Facility Services

Strategic facility management begins and ends with a comprehensive view and 24/7 response plans. And that’s much simpler when outsourced facilities management is the go-to model of use. Connect with SMG Facility Services at 877-764-1500 or by submitting your queries here.

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