ISS: Future of outsourcing points to strategic innovation, relationship building

by Brianna Crandall — January 29, 2016—A new white book from global facilities services provider ISS and the Copenhagen Institute of Future Studies (CIFS) uncovers future trends in outsourcing and perspectives for facilities management. Outsourcing tendencies point towards a shift of strategy: outsourcing is no longer merely a cost exercise, but a strategic element creating increased innovation power based on transparency and trust, according to the report.

The ISS 2020 Vision White Book is the fourth in a series that provides tangible solutions to the changing outsourcing environment in the future. It concludes that new collaboration models are emerging, which will open up new opportunities for outsourcing suppliers and customers alike.

According to the report, one of the key solutions for outsourcing providers is to innovate and sophisticate their technological capabilities, and to further enhance their service delivery models to match the strategic outcome of the customer, according to the report.

Increased specialization is expected to result in a closer collaboration based on shared goals and risks. For the FM outsourcing process to be successful, both parties must work on establishing open and mutual beneficial business processes built on transparency and trust, says ISS.

Peter Ankerstjerne, head of Group Marketing, ISS A/S, comments:

Our research shows that the nature of outsourcing is undergoing a profound change. From strong focus on cost reduction towards supporting strategic objectives and pursuing advantages in terms of innovation, growth, brand protection, risk mitigation, access to talent and increased change.

The FM outsourcing relationships will change from traditional client-provider transactions primarily focused on cost reductions to value-based strategic partnerships especially focused on increasing workplace efficiency. Outsourcing providers increasingly need to differentiate themselves around technological sophistication, sustainability and innovation processes which directly influences the customers’ ability to attract talent or getting their products and services faster to market.

The ISS 2020 Vision White Book, available for download from ISS, presents the results based on a global survey conducted in collaboration with CoreNet Global, combined with a number of in-depth interviews with international outsourcing experts.