Survey: Outsourcing of facilities management continues to increase

New York City -- The outsourcing of real estate and facilities management (REFM) activities is expected to expected to hold steady or increase, according to the inaugural KPMG 2011 global real estate and facilities management outsourcing pulse survey. Among the buyers of REFM services, 50% said they plan to increase outsourcing over the next one to two quarters. Longer term, over the next 12 months, 44% of buyers plan to increase their REFM outsourcing

“Although some organizations are considering outsourcing REFM services for the first time, others that are already outsourcing are looking for opportunities to outsource more sites and services, as well as consolidate or restructure their current contracts to realize additional savings,” said Ron Walker, principal and REFM sector leader in KPMG’s Shared Services and Outsourcing Advisory group.

Reduction of operating costs was identified as the as the top driver of REFM outsourcing, both by buyers (70%) of REFM services and of service providers (75%). The second most common driver cited by buyers (41%) was improvement of the performance of REFM processes.

Among companies outsourcing REFM activities, the most commonly outsourced area was workplace services, which includes janitorial, cafeteria, and amenities services. The second most frequently REFM outsourced area was facilities (HVAC, electrical, mechanical, building repair).

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