LONDON--(BUSINESS WIRE)--According to the latest procurement intelligence report from Technavio, the global integrated facility management services market is expected to grow at a CAGR of 6.3% over the next five years due to benefits such as cost-effectiveness and reduction in complexities associated with management of facility services.
The research report titled ‘Global Integrated Facility Management Services Market: Procurement Market Intelligence Report 2017-2021’ provides an in-depth analysis of category spend, best procurement practices, and cost saving opportunities, aimed at helping organizations achieve superior business performance. The report also provides insights on pricing, supplier positioning, and top companies, enabling sourcing professionals to improve their competitive advantage through procurement excellence.
“The rising demand for integrated facility management services from large organizations to save costs in the management of facilities is one of the key drivers of the market,” says lead Technavio procurement specialist Angad Singh for category spend intelligence. “The rise in commercial activities in developing countries will lead to a quick rise in market revenue from countries such as China, India, Vietnam, South Korea, and Malaysia,” adds Angad.
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Cost saving opportunities in the global integrated facility management services market
The adoption of various cost-optimization levers helps buyers of global integrated facility management services market realize direct cost savings and enhance category management and value benefits (including reduced procurement complexities).
Technavio procurement experts have segmented the cost saving opportunities in the global integrated facility management services market into the following value-enhancement opportunities:
- Adoption of technology
- Supplier Competition
- Adoption of negotiation strategies
- Optimization of procurement practices
- Bundling of services
Adoption of technology saving aspects
Integrated facility management service providers offer smart-building management solutions using advanced cloud-based technology to provide real-time control of buildings.
Other important technologies adopted by the suppliers in the industry include GIS, facility maintenance software, BIM, and integrated workplace management systems. These solutions save up to 10% of the total category spend for the suppliers.
Optimization of procurement practices saving aspects
Optimizing procurement practices by adopting a center-led procurement model and an outsourced sourcing model with a supply pool integration to make an optimum mix of global and regional firms will lead to saving up to 15% of the total category spend.
Most suppliers adopt contract based models subject to be renewed every 5-6 years and priced based on time and materials invested. This provides flexibility to both the supplier and the buyer to opt for the model most suitable to both.
Bundling of services saving aspects
Buyers seek to engage with service providers that can provide value-added services that complement the corporate mission and specific needs. Suppliers bundle facility management services such as catering, cleaning, support, and security services. Buyers can choose any combination of these bundles services per their requirements.
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Technavio is a leading global technology research and advisory company. The company develops over 2000 pieces of research every year, covering more than 500 technologies across 80 countries. Technavio has about 300 analysts globally who specialize in customized consulting and business research assignments across the latest leading edge technologies.
Technavio analysts employ primary as well as secondary research techniques to ascertain the size and vendor landscape in a range of markets. Analysts obtain information using a combination of bottom-up and top-down approaches, besides using in-house market modeling tools and proprietary databases. They corroborate this data with the data obtained from various market participants and stakeholders across the value chain, including vendors, service providers, distributors, resellers, and end-users.
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