Potential Benefit and Risk of Outsourcing Facility Management
Potential Benefit and Risk of Outsourcing Facility Management
Potential Benefit and Risk of Outsourcing Facility Management
Explain three (3) potential benefits and three (3) potentials risks in performing the outsourcing
facilities management services for Corporate Real Estate.
Potential Benefit
i. More time to concentrate on core business processes.
The benefit of outsourcing facilities management operations is that it enables the
business to focus on their core operations, without having to worry about their
facilities.
Facility management covers all non-core activities of an organization. These
possibly will include housekeeping, kitchen services, security and others.
For example, outsourcing these operations enables the business to focus more on
operations like marketing, daily operations, and strategic planning, which can
increase the overall productivity of the business.
Staff have more bandwidth to focus on the core business, making them more
productive and management more efficient
In-house facilities management is expensive. If facilities management operations
are outsourced, the organisation saves a lot of cost, because staff training and
operating costs are incurred by the service provider.
Although the outsourcing provider also requires payment, this will be considerably
lower than having an in-house facilities management department.