Client Portal | ISP Login

The Pros and Cons of Outsourcing Your Facilities Management Program

Jason Bishop View Jason Bishop

October 31, 2019     2 minute read

Making the decision to outsource your organization’s facilities management (FM) services takes careful consideration, planning and a thorough evaluation of your business goals. Many multi-site companies reach a point when their operations become so complex, and span so many different locations and geographic regions, that it’s nearly impossible to handle all of their FM functions in-house.

Whether you choose to farm all of your FM services or a portion of your program out to a third-party solution, it’s helpful to be aware of how these decisions can impact your day-to-day FM operations, and your business at large.

Pro: Increased Efficiency

Leveraging an FM solutions provider can help you boost productivity and increase overall program efficiencies. For example, by letting an outside partner take over the tactical tasks associated with FM, like sourcing service providers and contractors, your team can focus on more strategic practices that will move your business forward.

Pro: Cost Savings

One of the primary benefits of partnering with a true Integrated Facility Management company is to move away from legacy cost models using hourly rates, trip charges, emergency fees and overtime.  By taking a Total Cost approach, you can drive “hard dollar” savings. And, further reduce expenses through cost reduction initiatives that collectively can result in double-digit spend elimination.

Pro: Risk Reduction

Depending on where your business is located, it can be difficult to find reliable, licensed contractors in your area. By outsourcing your FM services, you can leave service provider procurement to the pros, again allowing your facilities team to spend less time finding reliable technicians and more time focusing on strategic initiatives.

Con: Lack of Direct Control

Though it holds the potential to alleviate certain burdens, outsourcing your FM program also means you must relinquish a certain degree of control over your operations. As long as your FM partner has a firm understanding of your business, industry and brand, letting them handle part or all of your FM program won’t have a negative impact on your organization.

Con: Employee Dissatisfaction

Merely mentioning the word “outsource” to some employees can incite fear, especially when the services being outsourced have historically been handled by internal employees. Some may worry that they will be rendered obsolete, or that their jobs will be put in jeopardy if an FM provider is brought on board. More often than not, employees will benefit from an FM provider, as their roles will become more streamlined and strategic in nature.

If your organization is considering outsourcing FM operations to an external provider, be sure to do your research and thoroughly vet your potential partner before moving forward. Focus on finding a company that has extensive FM experience, as well as an in-depth knowledge of your industry and your brand. 

For more information, check out this article on Optimizing Your Facilities Management Workforce Through Automation.

6 Ways Your Legacy FM Program is Costing You Money

What you don't know could be costing you. Download this free ebook to learn how outdated processes are costing you money, and what you can do to fix it.

Download Now

Subscribe to the NEST Blog

Get emailed articles, guides, and updates.