FACILITIES MANAGEMENT
Debunking Outsourcing
Before you take the plunge , find out exactly what it means
BY ANN BAKER-KEULEMANS
Outsourcing is not a term that should make any business feel uncomfortable , or unsure . A common practice globally , it can be an effective cost-saving tool and can even ensure best practice for certain functions , such as soft Facilities Management ( FM ) services .
Before you can decide whether you are going to outsource your FM , you need to understand what outsourcing is ‒ and if it could be of benefit to your business . Recently , the practice of outsourcing has come under fire in South Africa . While there are several reasons for this , the finer details of outsourcing is of less importance here . Rather , we want to focus on what exactly outsourcing is .
Outsourcing – a definition James Bucki writes on the business website The Balance , that outsourcing “ is a business practice used by companies to reduce costs or improve efficiency by shifting tasks , operations , jobs or processes to an external contracted third party for a significant period of time . The functions that are contracted out can be performed by the third party either onsite or offsite of the business .”
In the case of FM , a company may decide to contract some or all of their soft , hard and technical FM services out to companies that specialise in these fields . This can be done so that the company doing the outsourcing doesn ’ t have to find , train and employ their own in-house FM providers , allowing them to focus on their core business . It can also be because there is a skills shortage in South Africa , making skilled professionals hard to find and sometimes expensive to employ . A specialist FM company understands the needs of the industry , often provides their own training , and should provide skilled and knowledgeable managers to oversee the services they provide , ensuring quality of work and best practice .
FM ‒ outsourcing ranges from cleaning and canteen services , maintenance , IT functions , and more . You coud choose to outsource individual services , or bundle them together . There are several large FM service providers in South Africa you can approach for tender , but it is also possible to engage the services of an FM advisory service , in order to determine what
it is your business really needs . Is it really the cheaper option ? The recent South African Facilities Management Market Quantification and Analysis Study undertaken by SAFMA and African Response showed that , at an overall level and pertaining to industry users only , preference is more of a driver for outsourcing than any real cost-saving . It also showed that smaller or growing businesses often cannot justify the cost of outsourcing their FM services at such a small level , and is something to take into consideration .
The key to success Whilst a company that offers a holistic FM solution might not have intimate knowledge of the dayto-day happenings and challenges of your specific industry , an in-depth knowledge and comprehensive understanding of the FM industry and what is required , paired with trained staff and managers , means your business won ’ t suffer from any change management hiccups and your FM needs will be met as discussed and as expected .
SOURCES
www . safma . co . za www . thebalance . com
36 AUGUST 2017 SA Real Estate Investor www . reimag . co . za