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Facilities Management Outsourcing Trends

Facilities management (FM) outsourcing in South Africa is in good form with a considerably high number of end-users indicating that they still outsource more than half of their facilities. These organisations predominately outsource via single and bundled serviced contracts utilising one or more suppliers. Top FM services that are outsourced include ground maintenance, pest control, security, cleaning services and energy management. Almost half of the end-user respondents (42%) to the 2017 Facilities Management South Africa Survey indicated that they will re-tender and re-scope their FM contracts while 22% will stay with the same suppliers.

Financial savings and greater flexibility are just some of the objectives that end-users are achieving with their FM services, which is why they rate cost and confidence in the team’s ability as most important when evaluating tenders or bids. The good news is that end-users believe that their suppliers are successful in meeting their outsourcing objectives. However, there is room for improvement in providing better technical expertise and SLAs, reducing costs further and providing management information with service performance data, while mitigating risk.

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