by Shane Henson — September 21, 2011—According to the inaugural KPMG 2011 Global Real Estate and Facilities Management Outsourcing Pulse Survey, companies that provide facilities management services should experience a steady flow or even an increase in business in the near future. Nearly all buyers currently outsourcing real estate and facilities management (REFM) activities expect to maintain or increase outsourcing usage in the short to medium term, the survey reveals.
The KPMG survey polled both users of REFM outsourcing and REFM outsourcing providers, with the majority operating in the United States and approximately 30% operating globally or in the Europe and Asia Pacific regions. In the near term, buyers were more bullish than service providers about the projected increase in outsourcing.
Among the buyers surveyed, 50% said they plan to increase outsourcing of REFM services over the next one to two quarters. In comparison, just 21% of service providers expect demand levels to increase during that period, with an equal number expecting demand levels to decrease. Longer term, over the next 12 months, 44% of buyers plan to increase their REFM outsourcing, while a much greater 72% of service providers expect outsourcing demand to increase in that time frame.
Both buyers and service providers identified reduction of operating costs as the top driver of REFM outsourcing, with 70% and 75% of respondents, respectively. The second most common driver cited by buyers (41%) was improvement of the performance of REFM processes, which was identified by 32% of service providers. The benefit ranked second by service providers (45%) was improvement of global delivery and operating models, cited by 33% of buyers.
Among organizations that are currently outsourcing REFM activities, the most commonly outsourced REFM process area was workplace services, which includes janitorial, cafeteria, and amenities services. Among buyers, 60% have already fully outsourced workplace services, 27% have partially outsourced them, and just 7% have no plans to outsource this type of work. The second most frequently REFM outsourced area was facilities (HVAC, electrical, mechanical, building repair), which were fully or partially outsourced by 85% of survey respondents.
Lastly, according to the service providers polled, 75% cited increased demand for facilities management services (e.g., management of facilities services, workplace services, property management), and identified portfolio strategy and planning services as the next greatest area of increased demand.
