CoreNet / ISS survey projects increases in corporate real estate outsourcing

by Brianna Crandall — June 20, 2016 — Facilities managers (FMs) and corporate real estate (CRE) professionals project significant increases in outsourcing, according to a survey in recent weeks by CoreNet Global, the worldwide professional association for corporate real estate (CRE) executives of multinational corporations, and global facilities services provider ISS.

Nearly 76 percent of survey respondents reported that they would see “more” or “significantly more” outsourcing by 2025. The survey was conducted among 281 FMs and CRE professionals globally. More than half the companies represented had 10,000 or more employees.

In another key finding, the use of outcome-focused sourcing models will rise sharply by 2025. Some 24 percent of companies employing that approach anticipate using it “significantly more.”

“Outsourcing of corporate real estate and facilities services continues to grow,” said Tim Venable, senior vice president, CoreNet Global. “Companies see it as a way to lower costs, access innovation and best practices, and allow the internal team to focus on strategy and internal customer relationship management.”

The survey was also presented as part of an ISS white paper on outsourcing.

“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, transparency, risk mitigation, access to talent and increased change,” says Head of Group Marketing Peter Ankerstjerne, ISS A/S.