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25 May 2019
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THINK TANK: IS OUTSOURCING FAVOURING THE SMALLER PLAYER?

Construction © Shutterstock
Since the collapse of Carillion - primarily a construction firm - outsourced FM has had to defend itself in the glare of a national spotlight © Shutterstock

12 March 2019 | Herpreet Kaur Grewal


Since the collapse of Carillion, and with Interserve struggling to right itself, outsourced facilities management has had to defend itself in the glare of a national spotlight.

 

The near-term future appears uncertain: MTW Research’s recent report claims that the market for outsourced FM services is facing the lowest level of growth since 2012 – a result of continuing business uncertainty and pressure on client budgets.


So how is the sector responding? EY’s recent report talked of FM service firms facing stagnating profitability in part because of increased competition from SMEs.


The government is also encouraging SME providers to step up – for example, through its SME Action Plan, which is designed to help smaller mid-market firm bid for contracts.


In 2018, the Cabinet Office-based Crown Commercial Service (CCS) also launched the Facilities Management Marketplace agreement. It aims to give the public sector access to a wide range of suppliers for their FM requirements and some hailed it as a significant change for smaller bidders vying for contracts. 


Given their concerns about risk exposure, are more large clients likely to consider putting their eggs in multiple baskets by employing more single-service or smaller local multi-service providers? Could the outsourcing landscape be changing to favour more medium and smaller-sized players?


We’d like your thoughts, both about what is actually happening right now and what you expect the coming years to bring.


Is the market changing to favour smaller providers?


Complete the survey here


Please email newsdesk@facilitatemagazine.com with any longer comments.