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Research Report

Optimizing Outsourcing Arrangements in Facilities

The current state of outsourcing Facilities services Contracted services are not a new strategy for higher education institutions. In fact, most institutions have contracted or outsourced some task or function within their Facilities division. However, in the past, senior leaders focused outsourcing arrangements on only a handful of areas (such as custodial services, auxiliaries, and […]

The current state of outsourcing Facilities services

Contracted services are not a new strategy for higher education institutions. In fact, most institutions have contracted or outsourced some task or function within their Facilities division. However, in the past, senior leaders focused outsourcing arrangements on only a handful of areas (such as custodial services, auxiliaries, and highly specialized tasks).

Today, higher education leaders increasingly view outsourcing arrangements as a potentially effective solution to the growing pressures facing their Facilities departments. Four major pressures and the possible benefits that outsourcing provides are detailed below.

 

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This resource is part of The Essential Guide to Cost Containment Strategies for Higher Education. Access this guide for 500+ critical tactics for immediate and long-term cost savings.

 

  Pressure on Facilities Potential benefits from outsourcing Tightening budgets Most campuses face resource constraints due to uncertain state funding and unpredictable tuition revenue. Outsourcing holds cost saving potential for institutions with expensive fringe benefits; it also locks in the cost of providing that service. Limited workforce With an aging workforce and dwindling skilled labor supply, leaders struggle to hire and retain qualified staff. Hiring, onboarding, and firing staff is the responsibility of the third-party vendor. Such arrangements can also provide access to workers with hard-to-source skills. Complex technology Facilities tasks are increasingly complex and technology-dependent (e.g., building automation systems), which can overwhelm current staff. Vendors…

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