More FMs are turning over some of their in-house services to outside providers. Here are some tips, courtesy of OMNNI Associates, for outsourcing FMs:
- Don’t go overboard. Receptiveness to outsourcing is not the same as the obligation to shed all in-house capabilities. Evaluate each service before you hire a consultant.
- Challenge old ways. Tradition and employment are valid reasons to continue, but “we’ve always done it this way” is no longer an acceptable answer.
- Reevaluate services frequently. You may decide to outsource additional services, bring some back in-house, or change suppliers. Arrange for three- to-five year contracts.
- Solicit multiple bids. You may find a significant price difference or discover that only a few suppliers meet all of your needs.
- Relinquish equipment gradually. Structure the contract to take advantage of the equipment you own. Suppliers can provide supplementary equipment, perhaps higher-tech than yours. Also include provisions for the supplier to take over if your equipment breaks or you decide that the operating savings of new equipment outweighs the rental savings of using your own.
- Reevaluate outsourcing approaches frequently. Make sure that outsourcing fits into your strategy as your specific needs and the marketplace change.
Based on a report from the ISFE Executive Update June 2000
