Opale Management Services Ltd

Outsourcing...

Outsourcing in Complex Facility environments requires flawless execution. Opale is accustomed to the requirements of complex FM organisations and has developed appropriate sourcing solutions supported by current market knowledge.
Outsourcing may be chosen as the preferred means of service delivery for a number of business reasons including:

> To redirect capital towards activities of greater strategic advantage
> To gain strategic advantage
> For leverage reasons
> To take advantage of economies of scale and reduce costs
> To redistribute scarce resources to core competencies
> To gain access to specialised expertise (i.e. to specific technical expertise and innovative technologies) related to the provision of products or services which may not be sustainable internally
> To deliver products and services faster and or at reduced costs
> To accommodate volatility in demand for resources
> Achievement of efficient high performance infrastructure.

Outsourcing Facilites Management


Outsourcing Benefits:
These will form the basis of any benefit analysis undertaken after implementation to determine the success or otherwise of the arrangement. The arrangement may lead to:

> Increased capacity
> Reduction in costs
> Improved service delivery
> Access to World Class Technology without significant financial outlay
> Risk transfer to supplier

Outsourcing Risk: While outsourcing can yield many business benefits, it carries exposure to risks that must be carefully managed:
Dependency Risk: The outsourcer makes itself dependent, or partially dependent, on the service provider because it loses full control over its operations.
Business Continuity Risk: The outsourcer exposes itself to business continuity risks to a greater or lesser extent.
Reputational Risk: The outsourcer exposes itself to reputational risk and customer dissatisfaction where the service provider fails to perform the outsourced activity to the required standard.
Litigation Risk: The outsourcer exposes itself to litigation risk and awards of damages against it where the service provider performs negligently or fails to perform at all the outsourced activity.
Regulatory Risk: The outsourcer exposes itself to regulatory risk where the outsourcer fails to comply with regulatory requirements.
Transaction Risk: The outsourcer exposes itself to transaction risk where the service provider has inadequate technical, financial or human resources to execute transactions properly on behalf of the outsourcer.
Strategic Risk: The outsourcer exposes itself to strategic risk if the outsourcing of a particular function compromises the achievement of its strategic objectives or puts at risk its markets or customer base.
Credit Risk: The outsourcer exposes itself to credit risk where a product originator or an intermediary has inadequate resources, processes or facilities to assess risk or has undue exposure to fraudulent behaviour.

The Opale Solution
With this in mind Opale have developed a process called OSIRIS which both helps its clients reap the benefits of outsourcing whilst managing the associated risks. The experience of our consultants ensures our clients avoid the pitfalls and bear traps commonly encountered when embarking on such a journey.

The Opale approach is tailored to ensure that the FM organisation has complete transparency into the Service Provider’s service delivery organisation and supporting bid package. Deals are structured to carefully align Service Provider and Client interests. Bids are translated into strong commitments and the establishment of rigorous Service Provider obligations and clear Client Rights ensure that there are no post deal “surprises”.

If you would like more information, please send your enquiry using our quick form or email us at info@opale.co.uk