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Facility Owners Focus on Core Competencies and Look to Lower Costs Finds Frost & Sullivan - Facility owners' increasing willingness to outsource their facility management services to third-party vendors creates opportunity for participants in the North American integrated facilities management (I-FM) services market
Facility Owners Focus on Core Competencies and Look to Lower Costs Finds Frost & Sullivan

 

PRZOOM - /newswire/ - Mountain View, CA, United States, 2009/06/12 - Facility owners' increasing willingness to outsource their facility management services to third-party vendors creates opportunity for participants in the North American integrated facilities management (I-FM) services market.

   
 
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Facility owners are under considerable pressure to lower their operating costs and concentrate on their core competencies in the current economic scenario.

The following are findings from the analysis:
• The market earned revenues of $22.79 billion in 2008 and estimates to reach $46.85 billion in 2015.

• Companies are realizing that outsourcing non-core functions is a better financial strategy that not only gains cost advantages, but creates better efficiency and a more competitive company.

• Owing to quality concerns and their desire to maintain control over all aspects of their business, some facility owners are unwilling to relinquish control over their facilities management services to third-party service vendors. This is impeding market penetration of service providers.

• To enhance their appeal, service providers must promote their ability to save companies 15 to 20 percent in operating and occupancy costs.

• I-FM service providers are undergoing structural changes to stay afloat in a rapidly evolving market. Globalization is compelling multinational companies to conduct business with a single service provider that offers multiple services at various locations instead of hiring multiple local providers.

From Frost & Sullivan Research Analyst Alejandra Lozano: "The lack of understanding about the benefits of outsourcing has contributed to facility owners' reluctance, slowing the rate of adoption of I-FM services."

"Organizations are now more likely to extend contracts to a single, reliable service provider rather than relying on different vendors to perform I-FM services," states Lazano "The advantages of a single-source service provider include providing consistent service and quality, better responsiveness, consistent pricing and billing, centralized control, and the greater accountability that comes with consolidating a number of services into a single contract."

About Frost & Sullivan
Frost & Sullivan, the Growth Partnership Company, enables clients to accelerate growth and achieve best in class positions in growth, innovation and leadership. The company's Growth Partnership Service provides the CEO and the CEO's Growth Team with disciplined research and best practice models to drive the generation, evaluation and implementation of powerful growth strategies. Frost & Sullivan leverages over 45 years of experience in partnering with Global 1000 companies, emerging businesses and the investment community from more than 35 offices on six continents.

 
 
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Facility Owners Focus on Core Competencies and Look to Lower Costs Finds Frost & Sullivan

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