Strategic Review

Client Overview

ExcelSource was contracted to perform a preliminary assessment of a clients’ Facilities department, with a perception by its board that the function would benefit from being outsourced. The client is a key player in the financial services sector and has seen many of its competitors do the same.

Challenge

Our client felt they would benefit from outsourcing their Facilities function and were seeking a solution that meant they could react to industry changes more quickly whilst saving money.

Solution

ExcelSource embarked on a benchmarking exercise for a number of the client’s Facilities Services. A number of services under management were excluded, as these were either fixed cost (i.e. rents, rates, or service), or the benchmark would not be reliable due to its specialist nature. The remaining services were benchmarked against a number of similar companies in their industry. A significant difference between the benchmark sample and our client’s services was identified. An initial draft was carefully reviewed to check our assumptions were valid and some assumptions were adjusted from this review. Once the Target Operating Model was agreed, a subsequent phase identified a number of suitable FM organisations and ExcelSource ran the tender process for the in-scope services and a preferred supplier was selected.

Benefit

From this exercise, 25% of costs were identified as potential saving opportunities. ExcelSource was contracted to realise these savings through a strategic review project.