Insight

IFM and support services are racing to the bottom, but what they need is a lift

February 2018
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Global outsourcers and integrated facility managers (IFMs) are nervously looking over their shoulders—and it’s no wonder why. These businesses are struggling to deliver unwieldy multigeography, site, and service contracts as clients demand more for less. Now is the time for the industry to ask itself what went wrong and what we can learn from the past 10 years.

At a glance

  • As we recovered from the recession, some companies pursued revenue growth at the expense of contract profitability.
  • Others bought specialist services either to gain a bigger share of the outsourcing wallet or to increase contract volumes.
  • But they often executed these tactics without effective post-merger integrations, which ultimately dragged down profitability and lost them critical contracts.
  • As cost pressures get heavier, c-suites should consider making immediate improvements in five core areas.

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