UK Facilities Management Outsourcing To Grow By 5 Percent Annually

The outsourcing sector in general shows no signs of slowing down.

According to AMA Research, in its 10th published edition of the report, “Facilities Management Outsourcing Report – UK 2014-2018 Analysis”, the market for outsourcing facilities management services, which included bundled and total facilities management, raked in almost £19.5 billion in 2014. In the next four years, it is forecasted to grow, with a valuation seen to reach about £19.5 billion.

Most of the business in the public sector will mostly likely be coming in from local authorities, asBPO companies are viewed as a means to meet budget cuts and to save on costs. The trend for bundled service contracts will continue, and there will be a shift away from single service contracts as total facilities management packages will be favored. One stop shop solutions will gain more traction, where an increase in services is made available for a single provider as a way to reduce procurement costs.

Larger facilities providers that are capable of supplying a full range of services will most likely get more business.

AMA Research director Keith Taylor said, “The government estates will undoubtedly shrink but our forecasts assume that outsourcing will be viewed as a means of saving costs, more so than an expenditure element to be cut,” he said. “In addition some government cuts in the education sector, for example, have not led to construction output reductions, as universities and academy schools, for example, appear to have been successful in drawing in private sector investment.”

Currently, 50% of the total facilities management outsourcing market is taken up by corporations, while central and local government make up almost 25%. Healthcare and education, on the other hand, represent 18% of the total market.