Pros and Cons of Outsourcing FM services in 2023

In 2023, facility management (FM) has become an integral part of daily business operations across various industries. As an FM Leader, deciding whether or not to outsource your facilities management can have significant benefits and challenges. Here are some points many of our prospective clients consider before making the decision to implement change by outsourcing:

Benefits of Not Outsourcing Facilities Management:

1. Direct Control:

   By keeping FM in-house, you have more direct control over the management of your facilities. This control can lead to better alignment with organisational goals and the ability to implement changes quickly.

2. Better Knowledge of Company Culture:

   In-house FM teams are more likely to understand the company’s culture, values, and specific needs. They can tailor their services accordingly, potentially resulting in a better overall experience for employees and visitors.

3. Enhanced Security and Confidentiality:

   In sensitive industries or businesses dealing with confidential information, an in-house FM team may offer better security protocols and tighter control over access to critical areas.

4. Flexibility:

   In-house FM teams can adapt to changing circumstances and operational requirements more readily, as they are part of the client organisation and can align their priorities and job roles accordingly.

5. Communication and Collaboration:

   Being an integral part of the organisation, in-house FM teams may have better communication and collaboration with other departments, leading to smoother workflows and issue resolution.

Challenges of Not Outsourcing Facilities Management:

1. Cost Considerations:

   Maintaining an in-house FM team can be costlier than outsourcing, as it involves hiring, training, and providing benefits to employees. It may also require investing in technology and tools to manage facilities efficiently. As an FM provider, Phosters FM already has the resource available to support many client estates, thus limiting overhead concerns to their clients, while maintain the service delivery and standards required.

2. Expertise and Specialisation:

   External FM service providers, like Phosters FM, bring extensive specialised expertise and experience to the table. An in-house team may struggle to match the same level of knowledge, skills and accreditations, particularly for niche services or complex projects.

3. Resource Limitations:

   In-house FM teams may face limitations in terms of manpower, adaptability and skillsets, making it challenging to handle large or multifaceted facilities.

4. Risk of Workforce Disruptions:

   Employee turnover and the need for continuous training can pose risks to in-house FM operations. Losing key personnel may temporarily impact service delivery until replacements are found and trained.

5. Lack of Benchmarking:

   Phosters FM regularly benchmark our services against industry standards, providing valuable insights for improvement for our clients. Without such external comparisons, an in-house team might miss potential opportunities for optimisation.

6. Scalability Issues:

   If an organisation experiences significant growth or downsizing, in-house FM teams can struggle to scale up or down efficiently to match the changing facility requirements.

Ultimately, the decision to outsource or keep facilities management in-house depends on factors like the organisation’s size, industry, budget, and strategic priorities. Some businesses may find that a combination of both approaches, like a hybrid model, can offer the best of both worlds, leveraging the strengths of both internal and external resources.

At Phosters we have a wide variety of client models from single service provider, hybrid model and full TFM. Whichever suits your business best, we are here to help. If you would like to hear more about our business and service offering, please do not hesitate to contact us info@phosters.co.uk

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