White Paper Abstract

Outsourcing Considerations for Critical Facilities

By: Staff

More than 80 percent of America's fastest-growing companies outsource one or more of their business functions. Outsourcing is a rational tool for any company to use to manage, operate and administer Critical and Hypercritical Facilities™.

Delivering Advantages and Limiting Risk
Specific functions can be outsourced singly or in "bundled" combinations: Building Engineering, Project Management, Property Management, Security, IT Operations and Equipment/Facility Maintenance. In addition to the unique advantages realized in each of these areas, outsourcing offers these general benefits: (1) cost reductions and controls; (2) stronger focus on core functions; (3) access to world-class capabilities and best practices; (4) rightsizing of internal resources; (4) greater skills depth; (5) flexibility in staffing; (6); elimination of management and control difficulties; and (7) risk-sharing through incentive-based contracting.

Certain conditions, such as personnel disruptions, time constraints, and operational interruptions, may weigh against the use of outsourcing. This paper outlines specific issues to address that will limit risk, enhance performance and promote acceptance of outsourcing of the functions related to Critical Facilities.

Hypercriticality Favors Outsourcing
Outsourcing provides a reservoir of specialized skills that can be tailored to the unique needs of Hypercritical Facilities. When monitored by qualified host personnel, outsourcing deepens the skills of operational management, broadens the experience base, and multiplies the effectiveness of accomplishing the critical mission of a facility. This rationale supports outsourcing to decrease the risk to business operations, increase the operating availability (Uptime) of a Hypercritical Facility™ and meet desired service levels.

Screening, Scoring and Selecting Providers
Successful outcomes flow from a thorough service provider selection process through a three-stage selection protocol including: (1) detailed scope of an RFP; (2) validation and scoring interviews; (3) and Due Diligence vetting including site visits and review of client satisfaction surveys and performance metrics. Outsourcing providers should make recommendations for operational improvements, cost savings and knowledge transfers that further support the value of their service proposition.

Measuring Performance
Best-practice contract governance relies on establishing a performance baseline, articulating clear cost and service levels, and using performance metrics to capture results. The steps involved in auditing, measuring and reviewing performance are charted for adoption as a Contract Monitoring Process. Establishing common goals fosters true "partnering" and ensures focus and attainment for optimum value to an organization.

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