Outsourcing for corporate real estate managers: How can real estate learn lessons from other industries?

Journal of Corporate Real Estate

Volumn 7, Issue 3, 2005, Pages 258-270

  Farncombe, Martin ^a   Waller, Andrew ^b  

^a Theopraxis Ltd   (United Kingdom)

^b Remit Consulting Ltd   (United Kingdom)

Author keywords

Benefits; Measures; Outsourcing; Processes; Risks

Indexed keywords

EID: 84993012804     PISSN: 1463001X     EISSN: 14791048     Source Type: Journal    
DOI: 10.1108/14630010510631036     Document Type: Article

References (17)

1. Source: Gartner Group.
2. This type of outsourcing can also be disguised; a contract to manufacture a product may effectively outsource the client's need for property since, inherent in that contract, is the need for a factory. The customer is reducing his reliance on real estate by outsourcing the process that uses it.
3. Interestingly, some office providers have “offshored” their concierge services and installed a plasma screen/web cam at reception instead of a human operator.
4. Branscome, S. “Outsourcing's effects being felt on real estate market” Cincinnati Business Courier, April 9th 2004. See also Times of India, June 3rd 2004 [the latter quoting research firm Reis. Inc.].
5. Smith, A. “An Enquiry Into The Nature And Causes Of The Wealth Of Nations” - ISBN: 0679783369. First Published 1776.
6. Coase, R. H. “The nature of the firm,” Economica N.S. 4:386-405, 1937.
7. A recent case is that of UK retailer Debenhams, who outsourced their flagship stores to British Land in return for $900m in cash. See Financial Times, February 14th 2004.
8. See case study in Chapter 7 of “Atomic: reforming the business landscapes of today into the structures of tomorrow”, Camrass, R. and Farncombe, M. Published October 2004 by Capstone/Wiley. ISBN 1841121169
9. See http://www.adamsmith.org/80ideas/idea/5.htm and Evans, M. Journal of Corporate Real Estate, Vol. 2, No. 3, July 2000.
10. Regus Press Release, 02.12.99 and 16.07.04.
11. JLL/P&G press release, 04.06.03 - Jones Lang LaSalle Selected By Procter & Gamble For $700 Million Facilities Management Contract.
12. Property Management Outsourcing - Gerald Eve/Remit Consulting 2004.
13. Interestingly, the rise of outsourcing in IT has driven the development of standard development and operating process definitions: see, for example, http://www.bs15000.org.uk/.
14. Strassmann, P. “The Xerox Tragedy”, Computerworld, November 6th 2000.
15. Information Week, April 26th, 1999.
16. Information Week, December 3rd 2001.
17. A good treatment of the causes of success and failures in strategic alliances can be found in de Rond, Mark: “Strategic Alliances as Social Facts”, published by Cambridge University Press, June 2003.