This is one of many projects I have undertaken for CBRE, the leading global outsourcing company. In this instance, I undertook a high-level edit and restructuring of an existing document. As so often, the trick here was to provide comprehensive and useful information, with selling kept to a minimum.
Operational realities and opportunities – how outsourcing can outperform in-house
Outsourcing providers routinely make changes to structure, roles, methods, and other operational elements. With more extensive experience, they’re often met with less resistance to change than typical operators would when trying to make such adjustments internally.
Furthermore, with financial accountability, service level agreements and penalties, it’s in the outsourcing provider’s best interest to ensure they complete any desired changes on time, to the highest possible standard, and with minimal disruption.
In-house services can deteriorate over time due to stagnation, complacency, and gradual misalignment between the business needs and delivery model. Outsourcing grants access to industry best practices, leading technology, and expert knowledge, providing the best possible service levels. Financial penalties and the incentive of a structured career progression for employees ensures ongoing operational excellence in service delivery.
When managing a real estate portfolio, controlling risk comes in various forms. Whether through human error, talent attraction/attrition, or third-party vendor reliance, a self-performing model can introduce risk into many areas. With increased resources and expertise, outsourcing providers can identify risks that may have otherwise gone unnoticed, safeguarding against the possibility of financial or reputational impacts to the business.
While outsourcing providers may add their margins to operational costs, this does not mean the operator’s costs will increase. In fact, the opposite is typically true. Supply chain leverage generates significant returns and makes it possible to achieve improved service with lower risk at a better price.
There may be concerns that outsourcing a technical competency can put a company at risk of losing understanding of non-core areas that are essential to ongoing business support. However, the reality is that outsourcing can grant access to a far greater depth of skills, experience, and scale than resourcing non-core functions internally could achieve. There are advantages to retaining proficiency in the outsourced services – maintaining effective communication and mutual understanding between client and service provider, for example. However, detailed expertise and specialist knowledge are unnecessary.