As the UK market matures, self-delivery is growing in importance for both competitive advantage and risk mitigation.
- Even in the more complex IFM segment, self-delivery is becoming more common as customers seek more contract centralization and suppliers seek to grow margins.
- Early leaders include ISS, which is a leader in the development of integrated service offerings based primarily on self-delivery.
- White-collar FM firms are also moving into self-delivery (e.g., JLL’s acquisition of Integral in 2016).
CBRE increasing its self-delivering capability gradually over the years.
Context and Opportunity Call to Action
Review pipeline: identify top 10 renewals and key must-win tenders
- Invest in self-delivery. The cost of acquiring self-delivery capability can be considerable, but margins will grow over time.
- Use self-delivery investment to broaden the service offering and move into the higher growth areas of the market (such as energy management and IFM).
- Leverage self-delivery capabilities to deepen sector expertise in core customer groups. Detailed knowledge and understanding of increasingly complex customer segments is an important area of competitive advantage
What is your self-delivery Vs outsourced delivery model ratio?