Outsourcing is an industry that grew out of response to recession, and has continued to evolve in response to economic pressures. So says a contract company.
MITIE in its preliminary results for the year to March 2013, said that its security teams have ‘risen to the challenges posed by an intensely competitive marketplace. We provide total security management, which involves assessing risks and then combining services – primarily people, technology and consultancy services – to manage those risks. As with our cleaning offer, a key strength is our capability to self-deliver, with no subcontracting of technology or remote monitoring services.
“The market is evolving from one that is focused on input and a commoditised service to one where output is the key, such as the safety and security of a building.”
The contractor said that it is strong in the private sector security markets and sees good opportunities in the lone worker and certification markets in the coming year, and at universities and NHS facilities which are the firm says becoming more open to outsourcing. “As a number of clients procure security separately from the rest of their FM requirement, and see it as a specialist service, we continue to deliver through a large number of single service contracts. However, we are always alive to ways in which our security offer can form part of larger integrated FM contracts.”
MITIE says it has a structure to reflect changing market conditions. “Research told us that clients view FM provision as a set of similar services, so we have now grouped these under a single FM division, which delivers a range of hard and soft services as either specialist single services, as bundles of services, or as fully integrated FM contracts.
“Price remains a key differentiator in the FM marketplace, reflecting the situation in the broader economy. Clients are looking for value over all other considerations. However, we believe that once economic pressures ease or when an outsourcing project has brought a degree of stability to a client’s budgets, the key focus will shift to delivery and performance. At MITIE, we have a well-established reputation for helping clients reduce costs. At the same time, we are continuing to invest in our people, making sure that they have the attitudes to deliver high levels of service and competence.”
The firm described the market for bundled and integrated services as complex, and clients are operating many business models. “There has been a move during the year towards greater involvement by procurement teams in outsourcing. The result is that more services are being bundled and some former single services are evolving into national or, in some cases, pan-European contracts.
MITIE mobilised its largest ever contract with Lloyds Banking Group. Ruby McGregor-Smith CBE, Chief Executive of MITIE Group PLC, said: “We have had another good year with success in achieving organic growth driven by new and expanded contracts, as well as completing a strategic acquisition in healthcare. Whilst the economic environment remains challenging, we have reshaped the business to focus on long-term facilities management opportunities, as well as higher margin healthcare provision and energy consulting, all of which will support our growth aspirations.
“We expect outsourcing opportunities will continue to grow, with a trend towards more clients seeking to access integrated services. We are positioned to build further on our long track record of sustainable profitable growth.”
