Evolutions in next-generation integrated facilities management (IFM) outsourcing contracts: Implications for corporate real estate, facilities management and procurement executives

Abstract

As companies continue on the integrated facilities management (IFM) outsourcing journey, corporate real estate (CRE), facilities management (FM) and procurement executives must evolve their sourcing strategies from first-generation approaches to accommodate shifts in internal goals and objectives and respond to changes in the supplier industry. This paper explores what companies are doing in their next-generation IFM outsourcing efforts and how these strategies both influence and react to developments in IFM suppliers’ service offerings. Characterised by multi-regional approaches and simplified versions of their first-generation contracts, cornerstones of these shifting strategies include addressing innovation and a broader view of total facility operating costs. Practical insights drawn from companies’ experiences and lessons learned in overcoming issues will offer guidance to firms that are either considering starting the IFM journey or enhancing their existing programme.