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A new era in corporate real estate outsourcing

Author

Listed:
  • Ehrenberg, Maureen

    (CEO, Blue Skyre, USA)

Abstract

An evolution is happening in the way businesses around the world manage their corporate facilities. A new ‘Outsourcing 4.0’ model has emerged, in which large client companies retain relatively small, or ‘thin’, in-house teams supplemented by one or more global service providers taking a strategic command of the execution, costs and interaction with the business. In this model, in-house teams and outsourced providers use sophisticated data and analytics technologies, best practices and benchmarking to streamline and standardise facilities management in a shared services-type approach to gain leverage, improve employee productivity and create a channel for employee experience initiatives. The need for more sophisticated business intelligence capabilities is furthering the outsourcing evolution, because CRE teams are looking to their outsourced service providers for sophisticated data-driven digital FM approaches to reducing costs, improving productivity, optimising space utilisation and developing workplace strategy. The increased productivity, pricing leverage, improved regulatory compliance and access to resources that Outsourcing 4.0 can deliver make the company’s portfolio more productive and its impact on business results more meaningful.

Suggested Citation

  • Ehrenberg, Maureen, 2016. "A new era in corporate real estate outsourcing," Corporate Real Estate Journal, Henry Stewart Publications, vol. 6(1), pages 75-87, September.
  • Handle: RePEc:aza:crej00:y:2016:v:6:i:1:p:75-87
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    More about this item

    Keywords

    compliance; outsourcing; data and analytics; digital FM; experience level agreements; ELA; SLA; KPI; workplace strategy; occupancy costs; trusted advisor; global service providers;
    All these keywords.

    JEL classification:

    • R3 - Urban, Rural, Regional, Real Estate, and Transportation Economics - - Real Estate Markets, Spatial Production Analysis, and Firm Location

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