5 key factors driving growth of FM Industry

From a single-source outsourcing services such as soft services to business process outsourcing (HR, finance, and internal functions) to workplace change management and risk mitigation, FM industry has evolved over the years to deliver more strategic value to clients and include more aspects of the FM services. In this fiercely competitive market, organizations have to focus on their core business and outsource other services including FM-related operations to reliable service providers in the industry. Although a lot can be deliberated on growth factors of the FM industry, following are the key reasons that influence organisations to outsource their FM services to leading IPC’s: 

1. Reduce Operating Cost: Many organisations are looking at numerous ways to increase focus on their core business while maximizing the value delivered from their facility assets. With the increasing inflation, increase in rentals, employee overheads, organisations are always under pressure to contain the cost. Given that, the FM players can be of great support in benchmarking the office costs by bringing synergy across multiple offices, implementing SOPs for various activities. Additionally, SLA driven contracts also help in streamlining the processes in order to reduce cost, however, such specific measures entail 2 to 3 years of contracts with the FM service provider. 

2. Improve Control: In certain cases, where the in-house facility management team seems unable to implement sufficient amount of change in internal systems, thus driving the need for greater expertise in FM services to achieve competitive advantage in the market. Outsourcing of FM services can establish the change structure and controls needed to bring strategic value to company’s competitiveness. This would also bring improved quality, customer satisfaction and operational efficiency in the organisation. 

3. Operational Efficiency: The FM service provider offer robust systems / SOPs that help to cover varied scope of work and bridge the gap quickly. The professional way of working makes even challenging jobs look easy to perform, thus contributing to client’s success and increase productivity at the workplace. 

4. Statutory Compliances: Statutory requirements, being one of the utmost necessity that the organisations look towards while outsourcing services to FM service providers to ensure timely compliances and advise any change of regulation by the government authorities. 

5. Value Added Services: The FMs providers do offer value-added services such as risk management, Environmental, Health & Safety (EHS), local labor law management, cost saving measures, thermography, etc. Additionally, facility service providers offer quality service delivery along with flexibility to adopt local requirements.

In addition to the above-mentioned factors, numerous clients look for integrated facilities management (IFM) contracts that expands the role of the FM service provider. With the evolving needs of the organisation, FM players should provide value-added services and have the flexibility to adapt with changing clients’ needs and requirements. 

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