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Advantages And Disadvantages of Outsourcing Facilities Management
Organisations often choose to hire outside companies to fulfil activities undertaken that are not the core activity of the company, such as, cleaning, accounting, catering or maintenance. Ian looks at the disadvantages and advantages of outsourcing.
KEY TAKEAWAYS
- You gain specific expertise and professionalism on outsourced tasks with a company that specialises in that activity.
- The risk and responsibility of risk reduction is passed on.
- With a fixed price contract you can control your costs.
- You have one simple point of contact with your service provider.
- You can agree KPIs to ensure a consistent delivery of service.
- Staff working with the provider have better opportunities matching their skill set.
- You lose direct control.
- You must be thorough when completing the tender process.
- Security can be an issue with non company staff gaining access to company property and information.
- You may have to deal with employee or public backlash opposed to outsourcing.
BEST MOMENTS
‘Things can get done faster because there’s better capability with the outsource team.’
‘They should provide greater competitive advantage because if you’ve gone out to a tender process you should have got the best competitive price back.’
‘By putting all your eggs in one basket you could put yourself at risk.’
‘There could be a lack of organisational knowledge as a disadvantage. Again this comes back to communication.’
VALUABLE RESOURCES
https://www.ianjrogers.com/
ABOUT THE HOST
Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years’ industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.
CONTACT METHOD
https://www.ianjrogers.com/
Hosted on Acast. See acast.com/privacy for more information.
View all episodes
By Ian RogersOrganisations often choose to hire outside companies to fulfil activities undertaken that are not the core activity of the company, such as, cleaning, accounting, catering or maintenance. Ian looks at the disadvantages and advantages of outsourcing.
KEY TAKEAWAYS
- You gain specific expertise and professionalism on outsourced tasks with a company that specialises in that activity.
- The risk and responsibility of risk reduction is passed on.
- With a fixed price contract you can control your costs.
- You have one simple point of contact with your service provider.
- You can agree KPIs to ensure a consistent delivery of service.
- Staff working with the provider have better opportunities matching their skill set.
- You lose direct control.
- You must be thorough when completing the tender process.
- Security can be an issue with non company staff gaining access to company property and information.
- You may have to deal with employee or public backlash opposed to outsourcing.
BEST MOMENTS
‘Things can get done faster because there’s better capability with the outsource team.’
‘They should provide greater competitive advantage because if you’ve gone out to a tender process you should have got the best competitive price back.’
‘By putting all your eggs in one basket you could put yourself at risk.’
‘There could be a lack of organisational knowledge as a disadvantage. Again this comes back to communication.’
VALUABLE RESOURCES
https://www.ianjrogers.com/
ABOUT THE HOST
Ian Rogers is an entrepreneur running businesses in the Real Estate, Construction and Facilities Management arena. Ian has over 40 years’ industry experience, as he was effectively born into construction with his father having his own building company and Ian spending time working on sites from the age of 11!. As a result Ian has seen the industry from a trades person perspective, as a chartered quantity surveyor working on large commercial projects, as a project manager and then working on structured project finance through PFI/PPP deals. This has given Ian a unique whole life approach to any project by considering the end game at the beginning.
CONTACT METHOD
https://www.ianjrogers.com/
Hosted on Acast. See acast.com/privacy for more information.