Top 5 FM Transformation Trends to watch out for in 2021 and beyond

Top 5 FM Transformation Trends to Watch Out for in 2021 & Beyond

Published on : 5/12/21
  • The pandemic has brought fresh focus on Facilities Management (FM). Never before has FM been a bigger priority as right now.

    According to a report, the original revenue CAGR forecast for the FM market (2019-2025) was 23.5%, while the impacted revenue CAGR forecast for the same period is now 27.9%*. At the same time, every business has also been thrust into the reinvention mode. Organisations are rethinking and revamping their solutions to adapt to the new normal. Efforts are on to ensure that costs are optimised. In such a scenario, new trends have emerged in FM in tune with the evolving requirements.

    Growth Trends

    #1 New benchmarks on spends – There has been a 15-20% reduction in FM costs owing to optimization measures by organisations, to tackle the crisis brought forth by the pandemic. Organisations are looking forward to quality services but have placed a ceiling; thereby passing on the onus of managing the costs with respect to the quantum and quality of services, to experienced FM service providers like Sodexo.

    Working Together

    #2 Office spaces are being redefined – With employees resorting to remote working, the original workplace space has fewer employee footprints, leading to organisations reducing the real estate area. However, large organisations still want their employees to work in a formal office environment; the Hub-n-Spoke model (Hybrid approach) being the solution. Employees are now distributed across a bigger geographical area; some working from the original workplace and others from multiple smaller workplaces nearer to their homes. Therefore, FM service providers now have the bigger responsibility of delivering consistent and uniform experience to consumers, irrespective of where they operate from. At the same time, they have to ensure that their commitment towards health and wellness stays intact.

    Cost Going Down

    #3 Improving efficiency is a key differentiator – There is a shift of ownership; organisations are offloading the entire FM responsibility to the service providers. Organisations are delayering, moving towards leaner organizational structures, and are insisting on fixed price contracts. This helps them optimize resources and costs, rather put a ceiling limit to the expenses. In turn, service providers are placing greater emphasis on improving efficiency levels to maintain margins and profitability. How does it help? Well, both parties gain! “The onus is now upon us to deliver optimum services and enhance consumer experience. With large-scale operations, we are able to pass on benefits to our clients in terms of cost reduction while also contributing to the sustainability angle. There is optimization of raw materials and manpower. Over 50% of our new FM contracts have been based on the fixed price as it helps client cap their expenses”, says Karan Totlani, Corporate Services Segment Head, Sodexo India

    Smart Ways for Payment

    #4 Consolidation in the industry – The unorganized sector in FM has been badly hit; there has been a decline in demand from Industrial, Commercial and Education sectors by 15-20% in FY 2020. On the other hand the professional and experienced service providers are rising up to the occasion and adapting well to the changing requirements. There is a consolidation of the bigger players in the market, which will only benefit clients and consumers.

    Joining hands

    #5 Technology is a game changer – Technology improves productivity as well as efficiency. Additionally, the implementation of contactless solutions is the key to restricting the spread of pandemic; this is an intangible benefit and a dire necessity in the long run. However, a global survey shows that only 30% of global CEOs are ready to absorb technology in their premises.

    They still look upon technology as being heavy on investment. Operating expenses based technology solutions offered by experienced FM service providers can help in busting this myth and technology can bring in a win-win situation for both organisations as well as service providers

    remarked Vysarao Murali, FM Head, Sodexo India

    Thus, the time is favourable for celebrating Facility Management Services for Industries. The sustained emphasis on safety, hygiene and cleanliness has made FM a service that draws more and more importance from across industries as the days go by. And the trend continues!

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