Facility Outsourcing Can Save 12% Cost
Outsourcing of facilities management to professional managers, has achieved significant savings in operational costs and reduction in expenses for corporations and institutions in the country, savings being in the range of 10-12 per cent, according to a study.
"With an existing portfolio of nearly five million square feet of space in India, we are buoyant on making professional property and facility management services a pre-requisite rather than a choice for corporates and developers in India," according to C B Richard Ellis - South Asia head (Asset Services) Susheel Kaul.
The benefits of outsourcing facilities management when compared to self performed, in-house management are the savings in operational costs, reduction in expenses and improved service levels.
In addition, outsourcing helps most corporations free resources for other purposes which may be crucial for the company and thereby be in a position to refocus internal resources on macro portfolio and strategic issues.
An added advantage is the decreased level of risk and liability for facilities-related incidents, he said.
In India like any other traditional property market, property and facilities management is slowly being accepted more of a norm rather than an exception. By sharing risks and infusing capital funds, professional property and facilities management has come to stay in India, feel experts from the real estate firm.
"We have been able to achieve savings in the range of 8-12 per cent for facilities as small as 10,000 square feet, dispelling the myth that property and facilities management makes sense only when the square footage is high," C B Richard Ellis managing director, South Asia Anshuman Magazine said.
A recent example is that of Unitech, which has developed a state-of-the-art commercial facility, Signature Tower at Gurgaon, where C B Richard Ellis has started its management early this month.
From developers to corporates, Richard Ellis has recently bagged the facilities management contracts from GE Capital International Services in Gurgaon to maintain approximately 65,000 square feet area.
"Our mandate at GE is to manage the facilities on a 24-hour basis and include the day today operations of all electrical & mechanical systems and occupant management," Kaul said.
"By bringing in professional systems to workplace, we expect a long-term reduction of over 10 per cent in the operating costs of Signature Tower," he added.
The real estate firm is currently managing approximately five million square feet of space in the country, which includes ITC Center & Raheja Towers in Chennai, Divyasree Chambers & Embassy Square in Bangalore, Hi Tec City in Hyderabad, Max House, Nirlac in Delhi and International Cricket Stadium in Mohali.
The more recent ones are the Laburnum, JIL, GE & Signature Tower in Gurgaon.