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BPOs outsource facilities mgmt to bring down costs

James A. Loyola
Manila Bulletin
Sunday, September 11, 2009

The booming business process outsourcing industry is itself turning to the outsourcing of their facilities management in order to bring down costs so they can offer more competitively priced seats to their clients.

According to a Jones Lang LaSalle study of eight leading global organizations, the management of the real estate occupied by businesses is being outsourced to organizations with expertise in this field in addition to outsourcing customer relations and accounting services.

It notes, companies are outsourcing the management of their real estate facilities in order to cut costs and to improve organizational productivity by freeing their time from tactical services to focus on strategic relationship management.

“In our experience, cost savings ranging from 10 percent up to 25 percent can be achieved by organizations that are outsourcing their facilities management for the first time,” said Marina Krishnan, head of Integrated Facilities Management Southeast Asia for Jones Lang LaSalle.

Krishnan said that, in the Philippines, areas such as housekeeping, security, maintenance, and car fleet management, among other services are usually assigned to an administration department.

But because management of these facilities is usually not the core competency of most companies, efficiency, costs and innovation in this area tend to be lax.

Krishnan said that many business process outsourcing companies outsource their own facilities management because the “cost of a seat” usually includes expenses related to administration. Through outsourcing, they are able to offer more competitively priced seats to clients.

“Our clients in the Philippines – like a global pioneer in outsourced solutions and technology services and a leading financial services company – have outsourced management of services like reception and mail room services, as well as critical facilities like data services, networking and telephone systems that support around-the-clock operations,” Krishnan said.

Krishnan explained that “the aim of facilities management is to maximize opportunities for a facilities portfolio. This includes engaging in proactive analysis, contingency planning and preventative maintenance programs to reduce facility downtime and mitigate risks.”

Jones Lang LaSalle offers a diverse range of strategic and operational management services that drive efficiencies, mitigate risks and reduce costs. This adds real value to a business.

The Jones Lang LaSalle network throughout the globe also provides access to extensive research and benchmarking. “All this means that we can provide quality advice for better decision making,” said Krishnan.

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