Secrets of Real Estate Outsourcing
Few developments have shaken things up in real estate as much as the emergence of large-scale outsourcing as a viable business model. The outsourcing label is best reserved for those long-term contractual relationships that embrace a more comprehensive transfer of real estate functions from the client to the service provider. Those functions typically include facilities management, project management, transactions, design and planning, lease administration, call centre management, lease auditing, office services, accounts receivable/payable, and so on. In addition, some staff from the client are transferred to the service provider and the transferred personnel now relate to their old employer as a customer. Customers typically have high expectations of a better world to follow and service providers must be diligent in tracking their performance relative to key performance indicators and in measuring overall client satisfaction. The real estate industry will never be the same now that comprehensive outsourcing has taken hold and the challenge for service providers will be to meet the high expectations they have created from this exciting new model.