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Why outsource?

Why outsource?

It’s becoming more usual for private businesses and public organizations to choose to outsource their service operations to an external service supplier.

FM activities can either be handled in-house or outsourced to a third party. Reasons for outsourcing FM activities include, inter alia, focusing on core operations, improving service quality, reducing costs and minimizing risks. Innovations in how services are carried out to enable an improved customer value proposition are becoming increasingly important, driven by an increased focus on service quality as well as technology development.

Service quality surpassing price as most important purchasing criterion

Over the last five years, quality has surpassed price as the most important FM purchasing criterion in the Nordic region. Large corporations in particular focus on quality while the public sector puts a greater emphasis on price. In greenfield contracts, service quality is important, as well as and reducing costs. Competitive pricing continues to be an important driver for customers but as contracts mature, greater emphasis is put on service quality. The most mature contracts focus largely on measures to improve productivity and service quality.

Emphasis on innovation to improve productivity and reduce costs

Innovation is becoming increasingly important, not only as a differentiating factor during tendering processes but also during ongoing service delivery. Due to the desire for real time monitoring of contract performance, software tools are increasingly embedded within FM service propositions. Customers in the IFM segment are increasingly seeking innovative solutions with tangible benefits to increase productivity and reduce costs. The main areas of innovation include product improvement, improved sustainability and improvements that increase workplace.

Coor Graph