Facility management industry faces talent challenge
A shortage of skilled facility managers is the biggest hurdle to the delivery of FM services in Asia Pacific, according to a Jones Lang LaSalle survey of over 60 senior facility management professionals at the recent World Workplace Asia 2012 conference held in Singapore.
Key survey findings were:
• Almost three-quarters, or 73% of respondents, believe that skills shortage is the most important factor inhibiting the delivery of facility management in Singapore.
• Turnover of talent is the second biggest challenge facing the industry in Singapore for two-thirds of respondents (67%), suggesting that skilled FMs can and do utilise their significant bargaining power.
• More than half (57%) believe that a lack of understanding around the value of facility management is a major challenge to the delivery of these services in Singapore.
• The top three benefits that respondents expect facility management outsourcing to deliver are access to best practice, value for money and innovation in business.
• The top three factors that will shape the future of facility management are alignment to core business, business continuity, and cost and risk management through outsourcing.
“Facility managers in the region today are faced with a difficult challenge: businesses are asking for—and expecting—more from their service offering and delivery. This means that preparedness and access to non-traditional skills are now the most pressing concerns for professionals in the industry,” said Jordi Martin, Managing Director of Integrated Facilities Management in Asia Pacific for Jones Lang LaSalle
“At the same time, businesses are embracing facility management as a key component of their real estate strategy and are keen to work in partnership with FM providers. For potential new recruits within and outside the industry, this is an attractive prospect,” Jordi added.
DUBLIN–(BUSINESSWIRE)– Research and Markets ( http://www.researchandmarkets.com/research/9e9447/facilities_managem ) has announced the addition of the ” Facilities Management Outsourcing – Corporate …
Growth in the FM corporate outsourcing market is expected from 2012 onward, but will be slow and in line with construction projects being finished.
According to the latest FM outsourcing report from AMA Research, “Maturity in the corporate FM market makes it heavily dependent upon the economic climate.”
“As a result, the market is expected to exhibit some stabilisation and subsequent growth over the short to medium term, recovering only slowly from 2012 as construction activity improves and new projects reach completion.”
The report, Facilities management outsourcing: corporate sector market, 2011-15, focuses on commercial offices, retail, entertainment and leisure, manufacturing and warehousing, energy and utilities, and privatised transport services.
Contact: Richard Kadzis, +1-404-589-3240, firstname.lastname@example.org, or Bailey Webb, +1-404-589-3216, email@example.com, both of CoreNet Global
The report relies heavily on the conceptual framework of a U.S economy in a balance sheet recession.
A philosophical discussion in the outsourcing industry. Is outsourcing a good thing? Will the 30 year trend toward outsourcing and globalization continue? In the July 30, 2011 issue of The Economist, a column explores these topics. Although the author appears to confuse off-shoring with outsourcing, they makes a valid point. Outsourcing can go well, it can go wrong and it needs to be executed properly.
Some companies, such as Boeing, are bringing more work back in-house, in the jargon. But the business logic behind outsourcing remains compelling, so long as it is done right. Many tasks are peripheral to a firm’s core business and can be done better and more cheaply by specialists. Cleaning is an obvious example; many back-office jobs also fit the bill. Outsourcing firms offer labour arbitrage, using cheap Indians to enter data rather than expensive Swedes. They can offer economies of scale, too. TPI points out that, for all the problems in America, outsourcing is continuing to grow in emerging markets and, more surprisingly, in Europe, where Germany and France are late converts to the idea.
Companies are rethinking outsourcing, rather than jettisoning it. They are dumping huge long-term deals in favour of smaller, less rigid ones. The annualised value of “mega-relationships” worth $100m or more a year fell by 62% this year compared with last. Companies are forming relationships with several outsourcers, rather than putting all their eggs in few baskets. They are signing shorter contracts, too. But still, they need to think harder about what is their core business, and what is peripheral. And above all, newspaper editors need to say no to the temptation to outsource business columns to cheaper, hungrier writers.
The following is from today's GlobeSt.com article regarding the new HSBC outsourcing contract. Robert Carr of GlobeSt was interested in discussing trends in Outsourcing.
Bryan Jacobs with JLL tells GlobeSt.com that the bidding process started last summer. “It’s been a significant amount of work for all sides,” he says. “We’re going to specifically evaluate HSBC’s portfolio to see how they can best serve their customers. We’ll also be looking at productivity, and how they can be more efficient with space.”
He says that providing corporate commercial real estate outsourcing services has been picking up considerably since the recent downturn. “When we went into the recession, a lot of people sat on the fence, concerned about long-term decisions. In the past year, companies have begun to think about what they’re going to be doing over the next five to 10 years, and there’s been significant requests for proposal work,” Jacobs says.
See More on: www.globest.com
The Sourcing Interest Group is one the leading organization in world for the Sourcing and Outsourcing Industry. Expense Management Solutions is a global leader in sourcing and outsourcing advisory. The following is a recent article on vendor management.
How To Build A World Class Vendor Management Organization
Michele Flynn, President, Expense Management Solutions
This summer, the driving topic for many organizations seems to be “how to build a world class vendor management organization” – as we all know – it is often much easier to manage “one” thing at a time. In reality, in order to be effective in managing vendors across your enterprise, you need to be able to manage multiple vendors, all the time. Your first reaction may well be – that’s impossible. While I will not be able to address every issue that will come up, this article is intended to lay out a roadmap that will help you to get started if you are at the early stages, validate and potentially expand the breadth of your program if you are in development and perhaps even give you some things to consider if you are at the more advanced stage of implementation.
In a nutshell, effective governance or vendor management – on a one-off basis – is all about how to ensure that the value you achieve with your vendor equals or exceeds all that you expected when you initiated the relationship. (If you would like to hear more about how to implement good vendor management on a point to point basis, click here to listen to a 60 minute webinar I presented in May.) A world class vendor management organization takes vendor management to the next level. Why do you need to worry about building a vendor management organization (VMO)? For years most of us have addressed “vendor management” in one of three ways. Either we relied upon the business owners who are buying the services to ensure that the vendor performed as required, we focused our energies on the top strategic relationships, or we relied upon the contract to cover the critical issues and assumed the rest would be resolved through periodic sourcing initiatives. So why are more and more people thinking that the time has come to implement a Vendor Management Organization? As we work with our clients, we find there are three common drivers:
- Increasing complexity of relationships,
- Increasing pressure from regulators, consumers and customers, and
- A phenomenal increase in the volume of activity that is done outside the four walls of organizations.
see more on: via www.sig.org