Outsourcing’s Inside storyJune 3, 2013 / By Anne Thoraval
Not only is corporate real estate (CRE) outsourcing gaining traction across more services, more companies and more geographies, it is also being embraced in a more strategic fashion.
More services – The 2010, 2013 and 2015 data points provided by our past and current Global Corporate Real Estate Surveys are showing that the balance of services performed in-house or through outsourcing is steadily shifting towards more outsourced delivery across the entire spectrum of CRE services. Specialist and resource-intensive services remain most likely to be outsourced, with project management overtaking transaction services as the most frequently outsourced function. Even sensitive elements such as portfolio strategy, that the majority still prefer to retain in-house, will see further advancement along the outsourcing continuum over the next few years.
More companies – Today, in addition to companies that have a long CRE outsourcing history, a new generation is advancing that is taking more diverse paths towards strategic outsourcing. Among the new generation of companies outsourcing their real estate, some are starting with tactical out-tasking, while others are progressing quickly by following the paths taken by outsourcing pioneers.
More geographies – Kicked off in the US and followed by some Western European countries, CRE outsourcing is now being considered, adapted and implemented in an increasing number of non-traditional geographies. While its benefits are more easily recognised in countries with an established Business Process Outsourcing (BPO) culture such as India, the interest is intensifying in many others.
More strategic – Among the 92% of respondents who outsource part or all of their CRE services, the large majority consider that outsourcing represents a strategic relationship where partnership value is assessed over the long term. Only a minority see outsourcing as a tactical transaction mainly with the lowest-cost supplier, with significant country variations.
Source: Jones Lang LaSalle, Risks Ahead- Global Corporate Real Estate Trends, 2013
Read other survey findings in Jones Lang LaSalle’s report Risks Ahead Global Corporate Real Estate Trends.