By Linda K. Monroe
As American businesses reinvent their corporate culture and products/services mix, they are increasingly considering the outsourcing of non-core services to specialist providers. For facilities-related functions, such an evaluation has affected a host of services, from out-tasking janitorial and food services to outsourcing business support and information technology. Expectations of returns are always high; results are often disappointing.
Success, however, has been proven and quantified at the Bank of Hawaii (BOH), the state’s largest commercial bank and a leading source of information regarding the economy of Hawaii and the Pacific Region. After deciding to outsource its entire Corporate Facilities Division to CB Richard Ellis (CBRE) – one aspect of the bank’s introspective restructuring called New Era, initiated in 1999 – the facilities team at the Bank of Hawaii:
• Reduced operating costs by $2.6 million (a 35-percent savings) in the first 120 days.
• Reduced employee count by 35 percent.
• Standardized guidelines and procedures for consistency of operations.
• Established a centralized Customer Service desk, which handles 2,000 calls monthly.
• Won five of eight state awards through the Building Owners and Managers Association (BOMA), including “Efficiency of Operations, Equipment Maintenance, Janitorial Maintenance, and the Hale Po ’Okela Award (“House of Excellence), for two of its buildings.
• Received top honors in the Division 2 (100,000 to 249,999 square feet) BOMA Pacific Southwest Region TOBY Awards competition. (At press time, the ace FM team was preparing its entry to the “finals” at the 2002 BOMA International convention.
|Outsourcing’s Top 10s |
Top 10 Reasons Companies Outsource
1. Reduce and control operating costs.
2. Improve company focus.
3. Gain access to world-class capabilities.
4. Free internal resources for other purposes.
5. Resources are not available internally.
6. Accelerate re-engineering benefits.
7. Function difficult to manage/out of control.
8. Make capital funds available.
9. Share risks.
10. Cash infusion.
Top 10 Factors for Successful Outsourcing
1. Understanding company goals and objectives.
2. A strategic vision and plan.
3. Selecting the right vendor.
4. Ongoing management of the relationship.
5. A properly structured contract.
6. Open communication with affected individual/groups.
7. Senior executive support and involvement.
8. Careful attention to personnel issues.
9. Near-term financial justification.
10. Use of outside expertise.
Top 10 Factors in Vendor Selection
1. Commitment to quality.
4. Flexible contract terms.
5. Scope of resources.
6. Additional value-added capability.
7. Cultural match.
8. Existing relationship.
SOURCE: SURVEY OF CURRENT AND POTENTIAL OUTSOURCING END-USERS, THE OUTSOURCING INSTITUTE MEMBERSHIP
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