The case for outsourcing becomes obvious when an outside firm provides a service at a lower cost than managing it internally. The challenge then, becomes determining what the real internal costs are and how to clarify feature and pricing tactics that are often obscured by vendors with mixed motivations for providing this work.
At PSG we are 100% dedicated to this business and already know what will be involved. We already license and use most of the prevailing systems and we have the experience to know where the risks and opportunities can be found. We’ve done the analyses hundreds of times with a transparent model. Copy off of our paper and see the comparison when looking at internal and outsourced costs.
OTHER RISKS & BENEFITS TO CONSIDER
If just one of the mistakes listed beloe is made, it could be extremely costly and devastating to your real estate strategy, to say nothing of the confidence in team performance. When many of these risks are even possibilities, it can undermine reporting integrity and distract progress on more strategic advances with the real estate function because limited time and resources are being spent “fire-fighting” or recovering from mistakes. On the other hand, consider the benefits of assuring accurate, consistent and timely task work simultaneously provided while strategic initiatives are being accomplished!
- Chronic, small overpayments
- Failure to bill subtenants for operating expenses
- Missed key-dates resulting in having to vacate a location earlier or being stuck in a lease longer than desired
- Inability to generate meaningful reports due to inconsistent data entry or keeping the database current
- 10-20% greater error discovery than your AP Staff
- Tools and procedures (not spreadsheets) that promote consistency and auditability
- Reduced occupancy costs through improved key date control
- Greater ability to leverage data across departments and geographies
TIPS IF YOU’RE GOING TO DO IT IN-HOUSE
If you are going to manage your real estate portfolio in-house we suggest the following:
- Develop an RFP that is extremely specific – We have a template RFP if you want to use ours.
- Make sure a software program fits your portfolio, not just looks like a good demo – We have a comparison grid that we can walk through with you and we’ll even let you try one of our licenses if you like.
- Make sure whoever you appoint to manage this function is trained – We have expert training you can insource directly to your team.
To see the full outsourcing analysis or to learn more about the services PSG provides just AskPSG!