The FM Market Survey 2012, in which 585 service buyers and providers from across the UK were questioned, found that 70% of respondents pointed to financial savings as their reason for outsourcing facilities management services, while 61% indicated service level improvements. Sixty per-cent cited access to better technical expertise as a reason for outsourcing, with 57% acknowledging risk sharing as their motive. The study also revealed that more than 70% of organisations believe they achieved these objectives in each case.
In contrast, the survey shows that innovation in service delivery is only reaching its objectives in 56% of cases, with companies citing internal pressures such as financial barriers, resistance to change and a lack of board-level support, alongside issues such as a lack of supplier investment, as the main barriers to delivering innovation.
Executive Director at Interserve, Bruce Melizan, said:
“All business disciplines are under pressure to perform and facilities management in particular is often required to deliver ‘more for less’ in the post-recession economic climate. Over 85% of the respondents in this survey are experienced buyers that have been outsourcing for more than three years; and so it is encouraging to see that organisations are now reaping the benefits of improved cost and service efficiency through an outsourced facilities management model.
“However, there is also a clear expectation that facilities provision should now be delivering much more than cost savings alone; meaning that our industry must ensure it continues to adapt by providing a service that adds value to the client’s brand, business performance and reputation.”
The survey also revealed that:
• Performance pressure is here to stay. When asked to rank objectives in order of likely importance in five years’ time, respondents listed the top five as: value for money, reducing costs, service quality, flexibility of service delivery and added value/innovation.
• Clients and providers need to develop better partnerships. The top three success factors in these relationships are: trust, communication and service quality. Value for money is rated fourth.
• Asked about the current balance of responsibilities in their jobs, well over half of respondents said they spend less than 30% of their time on future strategy with most of their time and effort being devoted to day-to-day and reactive needs. Asked how they would like to spend their time, most are looking for a better balance – with 50:50 being the optimum ratio for the largest proportion.
• The standard three-year contract term is being questioned. Although a third of organisations still opt for this term, almost a quarter are now using five years or longer and slightly more do not apply a standard term for their contracts.
