Outsourcing: The Untold Secrets

Start Time:

8/12/2020 10:30:00 AM

End Time:

8/12/2020 11:30:00 AM

Room Number:






Business Management

About this session:

Outsourcing: The Untold Secrets Shrinking operational budgets is the new norm for most in-house cleaning programs. The challenge is maintaining hygienic building standards. As labor costs shrink and tasks increases, to meet these demands, facilities are now trending towards outsourcing. Research and consulting organization Frost & Sullivan predicts that by 2025, the global outsourced market in FM services will be worth $1 trillion. The term outsourcing is not new; however, it is evolving. In previous years cost management was the main impetus behind such a decision. In deciding how to increase operational efficiencies, maintain budgets, and utilize fewer resources, outsourcing is becoming a viable cost-cutting solution. In today's cleaning economy, it's more about the ability to free up in-house teams from performing complex duties such as stripping and waxing to those that offer the most customer value. The trend to outsource is moving up the value chain in terms of what it can deliver to organizations seeking to grow and shrink while maintaining its agility. Although savings can sometimes be apparent with outsourcing, it also reveals significant flaws in in-house cleaning operations. Flaws such as poor management, improper work loading, not automating or mechanizing fully, and not training workers, are frequently overlooked when deciding to outsource cleaning. When studying the effect of contract cleaning on patient health outcomes, using the hospital acquired infection rate as a measure, one study found that private providers are cheaper but dirtier than their in-house counterparts. An independent report by Steve Davies of Cardiff University found a correlation between hospital infection rates and contract cleaners. He revealed that resources would be more effective when directed at areas of more fundamental importance, such as education, cleaning. This presentation is designed to equip facility decision-makers with the Pros and Cons of Outsourcing and other factors to consider in the determination of whether to privatize their custodial service operations.

Learning Objectives:

1. Present a clear case for outsourcing with knowledge of both Pros and Cons
2. Utilize outsourcing as a cost-benefit strategy for non-core business functions rather than a labor-management tool
3. Incorporate a decision-making model that holds the vendor responsible for both a defined package of services and the delivery of business value
4. Identify gaps in infection control and cleaning procedures relative to facility and vendor practices
5. Develop the appropriate metrics that ensure vendor meets both regulatory and facility hygienic standards successfully

Presented by:

Gloria Strauthers
Exodus Management & Consulting, LLC

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