Self-delivery as a tool to improve margins

Baskar Sundaram
Baskar Sundaram

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 centralisation 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

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