Multinational companies are increasingly considering outsourcing to external service providers on a global or regional scale when developing their facilities management strategies.
While cost is the primary reason for choosing a global outsourcing solution, financial control and standardization are also top concerns. This comes from research by Hospitality Group, which shows that larger organisations often view facilities management as a tool that can be tailored for cost-saving measures.
“The trend known as ‘service standardization’ has emerged as a key factor and is one of the main drivers when choosing global outsourcing solutions,” explains George Maas, partner at Hospitality Group.
“This is especially true for organizations with core operations internationally, where harmonisation of core and facility processes is essential.”
Choosing a single provider when outsourcing facility management services offers flexibility and efficiency. With all related services under one umbrella, businesses benefit from streamlined and simplified communication across offices in different countries and a unified employee experience.
However, a centralized approach also has its drawbacks: each country and region has its own cultural preferences, facility requirements and regulations, so setting standards across an entire multinational corporation doesn’t always work.
“Working with a single global provider can limit your ability to effectively tailor services to local needs. Lack of customization can lead to dissatisfaction among local stakeholders and hinder the overall effectiveness of your facilities management strategy,” says Maas.
Organizations must strike a balance between efficient centralization and local adaptability. As you reevaluate your facilities management strategy, you may also want to consider a hybrid model that combines global oversight with local execution.
In general, selecting and utilizing global outsourcing services involves many complex factors, and the report notes that many organizations find it difficult when a provider excels in one region but has a limited presence in others.
“The key is to ensure that your expectations align with what is realistically achievable before embarking on your outsourcing journey. Don’t let what you can’t deliver be a surprise,” Maas noted.
For multinational companies looking to bring an international perspective to their facilities, collaborative partnerships are a good way to maximize the benefits of outsourcing, building a relationship that goes beyond the power dynamics of simply hiring a contractor, allowing both parties to share the pain and the benefits.
Facilities management companies can act as execution partners as well as add value in terms of performance improvement, experience and innovation.
As globalization and interconnectedness reach new heights in recent years, international outsourcing has become big business. Previous reports have predicted that the global outsourcing services industry, including facilities management, will grow by around 8% over the next few years.
