Source : Procurement Leaders

Facilities management service delivery is reaching “turning point” as traditional models fail to meet client requirements, experts have warned.

A new poll of 130 facilities managers found that companies are frustrated by the limitations of outsourcing on a lowest cost single service model - which is the most common procurement route today.

The research undertaken by Sheffield Hallam University and commissioned by Interserve, revealed that organisations are planning to outsource more services through Total Facilities Management (TFM) contracts in the future.

According to the poll, which surveyed 130 facilities managers within the industry, companies are frustrated by the limitations of outsourcing on a lowest cost single service model - which is the most common procurement route today.

The main benefits of outsourcing cited by recipients included reduced cost, value for money, added value/innovation, access to technical expertise, improved management information and ability to focus on core business.

Bruce Melizan, executive director at Interserve said: “This response represents a new realism in facilities management procurement. Facilities managers are saying that financial constraints are here to stay, there are no more ‘quick wins’ and the way forward is to work together strategically.”